Akshaya Tritiya 2022: Buy physical gold on Akshaya Tritiya or invest in Gold ETF, know what is the better option

With the changing times, investors are preferring gold ETFs over physical gold.

Gold ETFs are good for investors who want to improve their portfolio. It is a low risk investment. Individuals who do not wish to spend money on storage and additional tax, can opt for it.

According to Hinduism, Akshaya Tritiya (Akshaya Tritiya 2022But buying gold is considered auspicious. This time this festival is on 3 May. There is a tradition of buying gold on auspicious occasions like Akshaya Tritiya. On auspicious days according to religious beliefs Sleep ,GoldBuying them brings prosperity and good fortune. People buy all kinds of gold from coins, jewelery to digital gold. However, with the changing times, investors can replace physical gold with gold ETFs (Gold ETF) are more preferred. Experts say that gold ETFs have special advantages. In this, the investor does not have the fear of storage, theft because the units of gold are in demat form.

This Akshaya Tritiya, you can buy gold for yourself or gift it through Gold Exchange Traded Funds or Gold ETFs. One unit of Gold ETF is equal to 1 gram of 99.50 gold. These units are in demat form. The advantage of this is that the minimum investment in case of physical gold is very less.

Gold ETFs can be bought and sold on BSE and NSE just like stocks. However, you do not get gold in this. When you want to exit from it, then you will get money equal to the price of gold at that time.

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Advantages of Gold ETFs

  1. The price of gold ETFs is the same across the country, whereas in the case of physical gold, the prices vary from city to city.
  2. You can buy and sell units online as these units are traded on the stock exchanges like shares of companies. ETFs are as liquid as physical gold.
  3. When one buys physical gold in the form of jewellery, he has to pay an additional 30 per cent as making charges. In case of gold ETFs, the expense ratio is around 1 per cent, while the brokerage is around 0.5 per cent.
  4. Wealth tax of 1% is to be paid for purchase of physical gold of value above Rs 30 lakh. At the same time, wealth tax is not levied on gold ETF holdings.

How to Invest in Gold ETFs?

First of all open a demat account and trading account online. For this, PAN, ID proof and residential proof will have to be submitted. Select and order a Gold ETF. Along with this, there is also an option to choose Mutual Fund with Gold ETF. A confirmation will be sent to your email and phone number. A simple amount will be deducted for brokerage during the transaction.