Once, investing in gold meant walking into a jewellery store. Today, it can happen with just a tap on your phone. As Dhanteras and Diwali is approaching, many are still rushing to buy gold jewellery. But for those more focused on returns than ornaments, digital options have transformed how Indians invest in the yellow metal.
Digital gold opens the door to small investors
Digital gold, backed by 24K purity, mirrors real-time market prices and eliminates storage and making charges. It’s stored digitally by authorised platforms like Tanishq, MMTC-PAMP, and PC Jeweller. You can invest with as little as Re 1 and buy or sell anytime, 24x7. Tanishq’s website allows users to convert their digital holdings into actual gold or encash them directly into their bank accounts.
Gold ETFs and mutual funds
Gold exchange-traded funds (ETFs) help investors in earning gold returns without holding any physical metal. These funds trade on stock markets and liquidity. “For investors looking for gold exposure, gold ETFs are the most efficient option, as they avoid costs associated with storage, hallmarking, and insurance,” said Chirag Muni, Executive Director, Anand Rathi Wealth Limited.
ETFs are preferable over digital gold for their flexibility and long-term efficiency. For example, Nippon India ETF Gold BeES which is India’s oldest gold ETF, has turned a ₹10 lakh investment into over ₹1 crore since its launch in 2007.
For beginners, a simpler entry point can be gold mutual funds. Investing in gold ETFs and allow SIPs, though they carry slightly higher expense ratios. Aditya Birla Sun Life Gold Fund–Direct Plan, one of the top performers, has delivered 15.86% annualised returns over 10 years, turning ₹10 lakh into ₹44 lakh.
Sovereign gold bonds for assured interest
The Reserve Bank of India's Sovereign Gold Bonds (SGBs) continues to be a reliable investment for people looking for security and a positive return. They provide 2.5% yearly interest along with price growth, and they are backed by 999-purity gold. Even though there aren't any new issues available right now, they are still accessible on the secondary market, which makes them a dependable long-term choice for generating wealth.
