Why investing in Gold ETF is beneficial: Gold buying is most important in the whole of India during the wedding season. Gold is considered auspicious in Indian culture. There is a tradition of buying gold on auspicious occasions like Akshaya Tritiya, Dhanteras, and Diwali. Many people in the country also give gold as a gift. However, apart from financial importance, gold also means a lot from the return on investment. If you have made up your mind to invest in gold, then know why Gold ETF can be a better option for you.
Guaranteed pure gold in Gold ETF
There are two most common ways of investing in gold in India. Someone buys gold jewelry or someone brings gold coin from the market and keeps it at home. But Gold ETF is the safest and most economical way to invest in gold. This is because there can be many impurities in physical gold but this does not happen in Gold ETF as it gives you an opportunity to invest without keeping gold in physical form. One gold ETF unit is equal to one gram of gold. Gold ETFs are traded on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Demat account required to invest in Gold ETF
Many families prefer to keep the gold in bank lockers, to avoid the risk of gold theft. For this they have to pay locker charges to the bank. Apart from this, gold prices are also affected by many reasons and outperformance and underperformance are seen in them. But this does not happen by investing in Gold ETF. Explain that if you are thinking of investing in Exchange-Traded Fund (ETF), then you must have Demat and trading accounts.
Importance of gold as an asset
Many people in the country invest in gold for a long time. Its economic value remains even in the long term. That's why most people consider it as a safe asset and invest in it.
Apart from gold, silver also has great importance in the country. Gold and silver retain their purchasing power in the long run. Not only this, apart from this they are also seen as a hedge against inflation. Gold plays an important role in asset allocation.
Risk Diversification is an essential aspect of asset allocation. Adding gold to your investment portfolio will bring more stability to your portfolio in the market.
