What is paper gold? Know before buying gold

Today is the auspicious occasion of Dhanteras. Dhanalakshmi and Kuber are worshiped on this day. So today let us tell you about paper gold. You must have seen gold but have you ever heard about paper gold? So let us know what is paper gold.

What is paper gold?

Paper gold is a good option for those who have trouble keeping their gold safe. Now the question arises here that how many options does one have in paper gold? Is digital gold the only option? So the answer is no. Apart from digital gold, sovereign gold bonds, gold ETFs and gold mutual funds are also alternatives to paper gold. So let us understand about it in detail

gold etf

Gold ETFs are funds that invest in physical gold and are traded on stock exchanges like regular stocks. To buy gold ETFs you must have a demat and trading account with a registered stock broker. There are popular gold ETFs in the market today like Nippon India Gold ETF, HDFC Gold ETF or ICICI Prudential Gold ETF. You can invest in someone by doing your own research.

sovereign gold bond

The Sovereign Gold Bond Scheme was launched in 2015. Sovereign gold bonds are issued by the RBI on behalf of the government, so they are government guaranteed. This gives you a guaranteed return on investment. This gives 2.5 percent interest annually on investment. This money is deposited in the investor's bank account every 6 months. The first installment of SGB came on 30 November 2015. It matures in November 2023. The 2016-17 series of the SGB scheme was launched in August 2016. The series will mature in August 2024. However, there is a lock in period of 8 years before which you cannot withdraw the money. But after the lock-in period, a fixed return of 2.5 percent is available along with income tax exemption on maturity.

gold mutual fund

Gold mutual funds invest primarily in gold ETFs and provide an indirect way of investing in gold. You can invest in various gold mutual funds like HDFC Gold Fund or SBI Gold Fund. Never invest without doing your own research. You can invest directly through the mutual fund website or through platforms like Groww or Zerodha.