Gold ETFs vs Gold Mutual Funds: What is best
for you?

Investing in gold is an ideal hedge against the volatility of equity investments and inflation

Gold investment

Although the price of gold can be volatile in the short term, the returns in the long term can be rewarding 

Long-term investment

Gold investment can be done in many forms like buying gold jewellery, gold coins, gold bars, gold exchange-traded funds, Gold funds, sovereign Gold Bond (SGB ) scheme 

Physical Gold, Gold ETFs, Gold funds

Gold Exchange Traded Funds (ETFs) invest in gold of 99.50% purity, while Gold Funds invest in gold ETFs 

Gold ETFs vs Gold Funds

Investors can start investing in a Gold Fund with a minimum of Rs 1,000. For Gold ETFs, the minimum investment amount is equivalent to the current price of 1 gram of gold. 

How to invest in Gold ETF, Gold Funds

Both Gold ETFs and Gold Funds have the Net Asset Value (NAV) calculated at the end of any business day.

Gold value end of the day

Gold ETFs prove to be cheaper for investors as there are no exit loads. 
Investors need to pay an exit load to the Gold Fund in case of redeeming units before one year is completed.   

Gold ETFs over funds

Gold mutual funds don't require Demat accounts since they invest in AMCs' gold ETFs. 
Buying and selling gold ETFs requires a Demat account.

Demat accounts for Gold

Gold Mutual Funds allow SIPs. In case of the Gold ETFs, the SIP mode of investments doesn’t exist.

Mode of SIPs

Investors should know the key costs for gold ETFs include Demat charges, Expense Ratio, and brokerage charges taking the annual cost to approximately 0.5-1% 

Hidden costs for Gold

For Gold Funds, the charges are close to 0.6-1.2% annually, which includes the gold ETF charges and 0.1-0.2% charges for managing the gold

Total cost for Gold funds

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