Vikrant Shekhawat : Oct 29, 2024, 09:04 AM
Paper Gold: As Dhanteras approaches, the enthusiasm for buying gold increases rapidly. Many investors consider it a safe and long-term asset. With changing times, while people were attracted to traditional physical gold, now new options like digital gold, sovereign gold bonds (SGB), gold ETFs and gold mutual funds are giving investors diverse investment opportunities in gold. These options are called "paper gold" and are great for those who have trouble keeping physical gold safe. Let's know about these options in detail.1. Digital Gold: Convenience and FlexibilityDigital gold has become increasingly popular in recent years. In this, investors can buy gold online, which is kept in a safe place by the seller. Investment in digital gold can be started even with a small amount, which makes it accessible to common people. Many platforms like PhonePe, Paytm and Google Pay offer the facility of investing in digital gold. Through this, investors can also convert their gold into physical form or sell it easily if needed.2. Gold ETF: Profit opportunity with tradingGold Exchange Traded Funds (ETFs) are funds that invest in physical gold and are traded on the stock exchange. A demat account and trading account are required to invest in gold ETFs. The advantage of this investment is that you can easily buy and sell your funds like the stock market. This option is good for those who are interested in the stock market. Options like Nippon India Gold ETF, HDFC Gold ETF and ICICI Prudential Gold ETF are available in the market, in which investment can be made after doing research.3. Sovereign Gold Bond (SGB): Safe investment with government guaranteeSovereign Gold Bond is a government guaranteed scheme, which is issued by the Reserve Bank of India (RBI). Investing in it gives a fixed interest of 2.5% per annum, which is credited directly to the investor's bank account every 6 months. The lock-in period of this scheme is 8 years, although there is an option to leave it after 5 years. Investors get exemption in capital gains tax on maturity of SGB, which makes it an attractive option. This method of investing in gold is considered safe as it has a government guarantee.4. Gold Mutual Fund: An indirect but profitable investmentGold Mutual Fund is an option that does not invest directly in physical gold, but invests in gold ETFs. This is an indirect way of investing in gold. The advantage of investing in gold mutual funds is that you do not need to open a demat account in it. There are many options available in it like HDFC Gold Fund and SBI Gold Fund. Investment in gold mutual funds can also be done through SIP, so that small investors can also participate in it.Which option to choose?The purpose and need of investing in gold is different for every investor. If an investor wants to buy gold without worrying about any maintenance, then digital gold is a good option. On the other hand, if you want regular returns with government guarantee, then Sovereign Gold Bond is the safest option. For investors who are interested in trading, Gold ETFs and Gold Mutual Funds can be great options.Precautions before investingEvery investment involves risk. It is important to study the market and take professional advice before investing in digital or paper form of gold. Apart from this, it is also important to be aware of the tax rules associated with any investment.ConclusionInvesting in gold on the occasion of Dhanteras is an age-old tradition, which still attracts every investor. Digital gold, sovereign gold bonds, gold ETFs and gold mutual funds, all these options open new avenues of investment in the field of gold. With these options, investors can now invest in gold even without physical assets and keep their wealth safe.