New Delhi: As Dhanteras and Diwali burn holes in people’s pockets and wishes, gold is the go-to gifting choice for sensible chaps – but don’t think heavy jewellery or clunky coins.
Today’s markets offer sleeker, smarter ways to cash in on the yellow metal’s ageless appeal — without the inconvenience of physical storage. From tech to digital gold to government-backed bonds, here are four ways to make your money shine brighter than a festive diya.
Digital Gold: Think gold, minus the safe. Digital gold is backed by 999-purity bullion and can be liquidated immediately with no making or storage charges. Begin with as little as Rs 1 through platforms such as Tanishq; trade or sell in around-the-clock sessions. Money lands directly in your bank, or exchange it for delivered physical gold whenever you want.
Gold ETFs: Everyone swears by Gold Exchange-Traded Funds (ETFs) if you are a market mantri. They trade like shares on the stock exchanges and necessitate a demat account but do away with insurance or locker charges. Chirag Muni, director at Anand Rathi Wealth, refers to them as the gold standard for long-term gains.“Take for instance Nippon India ETF Gold BeES that has given an eye-popping 950% return since it opened in 2007 – Rs 10 lakh invested then would have become more than Rs 1 crore now,” Muni said.
Gold Mutual Funds: Suitable for beginners, these funds invest in ETFs and provide facility of lump-sum or SIP route. No doubt, expense ratios gnaw more than those of ETFs but the returns dazzle — ABSL Gold Direct Plan returned an average 15.86% a year since it started over a decade ago, bloating Rs 10 lakh to Rs 44 lakh.
Sovereign Gold Bonds (SGBs): When it comes to gold, gilt and interest are not often heard together but SGBs from the RBI offers a double whammy that combines rising price of gold with an annual 2.5% interest perk. Locked for as long as eight years but redeemable after five, they are offered for trading on secondary markets. There are no new schemes now but their double returns put them among the festive favourites.
This Diwali, say goodbye to the jewellery queue. These choices offer the hope of money without all the poundage — literal and metaphorical.
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