Digital Gold Investment: Recently, during the festival season of Dussehra and Diwali, the prices of gold increased drastically. After that the gold prices are going down. In such situations, investors may consider investing in gold. But gold is always good for them in terms of investment. Gold protects investors from market fluctuations and global uncertainties.
Gold has given very good returns in the last few years. If you don’t want the hassle of buying gold and maintaining it, in such a situation you can choose one of the gold ETF or gold mutual fund digital options. In both the 2 options your gold is available in digital form. Let’s find out which one is right for you.
Gold Mutual Fund
Under gold mutual fund you can invest in gold in small amounts through SIP. You don’t need a demat account for this. Your fund manager will invest your money directly in gold or gold ETFs.
Market experts say that gold mutual fund is a good option for new investors. It is suitable for those who don’t want to do real time trading and want to get a good return on their investment.
Gold ETF
By investing in gold ETFs, you track gold prices in real time. A demat account is required for this, as you will be buying and selling your gold in the stock market. Prices of gold ETFs fluctuate throughout the day. Market experts feel that if you want more liquidity and are knowledgeable about the market, you can invest in gold ETFs. For gold ETF you have to pay brokerage and demat account charges.
By investing in both gold ETF and gold mutual fund, your gold will not be lost or stolen. When it comes to tax on both.. you have to pay tax on both gold ETF and gold mutual fund. If you sell your investment within 3 years, you will have to pay Short Term Capital Gains Tax.
At the same time after 3 years you have to pay long term capital gains tax. You can choose any of the two according to your convenience and needs. Before making any investment, you should talk to your financial advisor and make decisions. It is not good to invest by looking at posts on social media. Invest if you know. Or it is better to consider the opinions of financial experts and advisors.
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