Start Investing:
Are you new to investing want to know the best area to invest in how about gold we all have heard about it since our childhood sometimes it's highlighted as a status symbol and sometimes it pays to cover your debts gold is not just restricted to these two areas it can be a great asset to you when it comes to investment so if you're looking forward to learning different ways to invest in gold?
Different Ways to Invest:
I'll talk about different ways to invest in gold and what are the pros and cons of these investments whenever it comes to investing in gold the first image we get is buying physical gold do you think it is a good idea to invest in physical gold. I don't find it that fruitful because various gay merits like a fair amount are invested in design formation when you buy an asset you have to pay the cost to keep it safe later you have to pay for the impurity expenses like this many expenses are added and clearly physical gold does not sound to be a feasible option for investment so what's the right way to invest in gold you can invest in gold in the 5 following ways.
Good Enhancement Tips:
Now we will discuss all these ways in detail therefore I suggest you enhance your understanding of gold investment so you can choose the right gold investment option for you the first option we consider and buying gold is physical gold does not mean buying jewelry but investing in gold biscuits and coins it is feasible to invest that gold biscuits because you are directly dealing in 24 karat gold moreover you do not have to pay additional money for the design but storage is still a problem it is not safe to keep such an amount of coal at your home and if you keep your gold in the locker it will add up to your storage cost and solve the problem of storage nowadays a new option of gold investment has been introduced.
When it comes to the cost of physical gold you will have to pay 3 GST you do not have to pay tax and delivery charges expense ratio is deducted all above in physical gold you do not have to pay any charges for exit load brokerage DP, SSD, etc based on the cost you are return on physical gold turns out to be forty percent in five years and effective returns come out to be 37 percent this advanced option of gold investment is digital gold as everything is getting digitalized these days how could gold stay behind you'll notice the option of digital gold in almost every money exchange platforms like phone pay Paytm, etc.
Benefits of Investing:
The first benefits of investing in digital gold are you can start your investment with just one rupee yes you heard me right just one rupee depending upon the amount of money you invest they collect the money and buy gold from three different companies these three companies are MMTC, PAM, MTC's government organization whereas the pamp is a swiss company they have made their combined venture the second one is safe gold and the third one is augment these three companies belong to the category of refining and minting so these companies can easily store gold you can easily buy and sell gold eventually it increases liquidity if you are willing to get the gold to deliver you can get that too but the minimum amount of deliverable gold is 0.5 grams to 1 gram you can invest in digital gold for five to seven years
Buy and Sell Gold:
When you reach the investment period threshold you will either have to get it delivered or sell your shares at the current price all these three companies have different policies on storage charges of gold like MMTC does not charge any storage charges whereas save gold charges 0.05 after two years so the amount is not that huge and worth investing in and before you start investing make sure you have complete knowledge on the platform you plan to begin investing in case of digital gold three percent JST is applied to the product's actual cost plus you'll have to pay two to three percent of storage and delivery charges, therefore, your five year returns turns out to be forty percent and adequate returns are thirty-five percent gold ETF to get a proper understanding of gold ETF.
Let's start with ETF it is just like finishing once they collect money from the public institutions and invest that money into securities following the index for instance if there is an ETF from nifty it will invest money in various companies of nifty depending upon their weightage and similarly depth will invest in government securities just like that ETF follows the gold index and invest in it accordingly it is not essential for the ETFs to invest in physical gold only they can invest in mining and refining companies as well moreover to maintain liquidity gold ETFs store zero to ten percent in-depth securities through gold ETF is a good option to invest you must have a demand account to start investing.
Fund Investment:
If you do not have this account you can create one and zero dollar op stocks or you can choose the next gold investment option in case of gold ETF you do not have to pay any GST but the expense ratio is around point five to one percentage and also you'll have to pay some brokerage amount for the applications like zeroth or op stocks but the amount is negligible and does not cost you much after these costs your fire return in gold details will be 40 and your effective returns will be 35 gold mutual funds mutual funds are quiet in demand these days so are they in gold if you are looking forward to buying mutual funds gold mutual funds can be a good option before you think about investing in gold major funds get the clarity on what gold which should funds are gold mutual funds are known as funds of funds because they invest in ETFs gold mutual funds are also considered options in which you can save a fair amount of money on the investment in gold mutual funds you do not have to pay any GST or storage amount.
But the expense ratio costs around point five to one point five percent plus point five to one percent etf and also for gold mutual funds you have to pay an exit load of one to two percent for less than one year and if you buy direct mutual funds your brokerage will be zero so your five year returns will be 40 and your effective returns will range around 30 sgbs sovereign gold bonds is the most trusted form of investment because themselves issues these bonds the best part of investing in sovereign old bonds is you can trade these bonds on exchange when it comes to cost you will not have to pay any gst storage expense ratio and exit load moreover zero charges are directed if you buy these bonds at applications like up stocks or zero therefore the five year return you get on sovereign gold bond is 40 and it does not end here you also get an additional interest amount of 2.5 annually so here we have a clear winner among us so if you are looking for an efficient way to invest in gold where you could earn effective returns sovereign gold bonds are the best option for you well it's all up to you to choose how you could invest in gold in this video we discussed 5 ways to invest in gold in detail.
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