How To Invest in Gold In India

Gold is undoubtedly the favourite precious metal of Indians. The evertime shine, personal use as jewellery and ever increasing value has made Gold as one of the best investment options. People should do a lot of financial planning and think whether it is good or bad before investing in Gold. We are here by providing the information that will guide you in deciding.
invest-in-gold-in-india-plan
You can buy Gold for investment in two types one is physically and other is electronically. While buying physically at shops are online in form of biscuits or jewellery the main thing to check is the quality and then store it at a safe place. If you want to buy Gold as an future investment you can do that without worrying about the quality and storage with many options.

Invest in Sovereign Gold Bonds
If you are expecting Government to be guarantee and want interest on your Gold, then go for Sovereign Gold  Bond scheme. Presently for Sovereign Gold Bonds 2017-2018 Series III could be your best option to invest in Gold. The applications are open from October 9 2017 to December 27, 2017 and bonds can be bought from Stock Holding Corporation,  post offfices and on the stock markets.

The price is adjusted every week. The current week it is about Rs 2956. There are mainly two benefits of buying these Sovereign Gold Bond. When Gold rate increases the value of your investment increases and also you get 2.5% interest. Interest will be added to your account every 6 months. In a fiscal  year individuals and HUF can invest in 4Kgs of Gold. Total tenure of investment is 8 years and after 5 years you will have exit options with certain terms. If you continue for full tenure there will be no tax on the returns. If gold bond early exit option is chosen the returns will be taxed as per short term capital gain (STCG). 


Invest in Gold ETF
Exchange Traded Funds are currently gaining popularity and these are one the best and easy way to invest in Gold. You can buy and sell these funds in stock markets but you will need a trading account to do the transactions. The rates are traded as per the stock exchange rates. The brokerage companies will charge when you buy and sell the Gold. 


Invest in Gold Mutual Funds
To buy 1 gram of Gold it would cost about Rs 3000 and to buy 1 unit in EFT it would cost the same. For many people it will not be possible to do so. People who want to invest with small amounts can buy Gold mutual funds .  Investment with Rs 500 and Rs 1000 can be made and there will be no charges for buying and selling. If you withdraw from these funds in 3 years tax will levied as per STCG.

Gather all the details from the advisor before investing in Gold schemes and funds.

Related Posts

How To Invest in Gold In India
4/ 5
Oleh

Reviews & Comments