Akshaya Tritiya 2022: Gold ETF or Gold Mutual Funds, which should you invest in Akshaya Tritiya

Indians love to buy gold.

Indians love to buy gold. Especially, on the occasion of Akshaya Tritiya, a large number of people buy gold. Now this question must be coming in your mind that what should you buy this year.

Indians to sleep ,Gold, I love buying. Specially, Akshaya Tritiya (Akshaya Tritiya) A large number of people buy gold on the occasion of (Buy Gold) Huh. Now this question must be coming in your mind that what should you buy this year. There are many options available in front of you. physical gold in (Physical Gold), Sovereign Gold Bonds (SGB), Gold ETFs (Gold Exchange Traded Funds), Digital Gold and Gold Mutual Funds. Akshaya Tritiya is coming on 3rd May this year. It will be celebrated with great pomp across the country.

This occasion will be considered very auspicious for Hindus. Buying gold on this day is considered very good. It is believed that buying gold brings good luck and prosperity. Let us know the difference between Gold Exchange Traded Funds (ETFs) and Gold Mutual Funds.

Difference Between Gold ETFs and Mutual Funds

Gold Exchange Traded Funds (ETFs) invest in 99.50 per cent pure gold. Whereas, Gold Mutual Funds invest in Gold ETFs. One can start by investing as little as Rs 1,000 in a gold fund. However, in case of Gold ETFs, the minimum investment amount will be equal to the current price of 1 gram of gold.

Gold ETFs prove to be more affordable for the investors. Because they do not have exit load. On the other hand, investors have to pay exit load to redeem the units before completion of one year in case of gold funds.

Since Gold ETF units are traded on the stock market, one can buy or sell them at any time of the day during trading hours. In case of gold funds, one can only redeem at the end of the day and has to apply to the fund house for purchase.

In case of Gold ETFs, the SIP mode of investment is almost non-existent. However, SIP is allowed in gold mutual funds.

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Demat account is mandatory for investing in Gold ETFs. On the other hand, one can invest in Gold Mutual Funds even without a demat account.