How should you invest in gold?:ETFs, MFs are regulated safe investments, says expert; check here for details of other modes of investment

Gold has always been a popular investment in India, seen as a safe haven during uncertain times. But buying physical gold isn’t the only way to invest. Here’s a simple guide to different ways you can add gold to your investment portfolio: Why Gold? 1. Safe Investment Gold is considered a safe investment, especially when the economy is unstable. 2. Hedge Against Inflation: Gold tends to hold its value or even increase when inflation rises. 3. Diversification: Adding gold to your portfolio can help diversify your investments and reduce overall risk. Different Ways to Invest in Gold 1. Physical Gold: This is the traditional way – buying gold coins, bars, or jewellery. Pros: Tangible asset, can be used as collateral. Cons: Storage costs, risk of theft, making charges on jewelry. 2. Gold ETFs (Exchange Traded Funds): These are like stocks that represent physical gold. You can buy and sell them on the stock exchange. Pros: Easy to buy and sell, no storage worries, transparent pricing. Cons: Demat account needed, expense ratio charges. 3. Sovereign Gold Bonds (SGBs): These are government bonds linked to the price of gold. They also pay annual interest of 2.50%. Pros: Safe, interest income, no storage worries, capital gains tax benefits if held till maturity. Cons: Lock-in period, liquidity issues before maturity. 4. Gold Mutual Funds: These funds invest in gold ETFs or gold mining companies. Pros: Diversification, professional management. Cons: Expense ratio charges, returns depend on fund performance. 4. Digital Gold: Buy gold online through platforms like Paytm or PhonePe. Pros: Convenient, small investment amounts possible. Cons: Storage charges, purity concerns, platform risk. So, which is the best investment method? The India Bullion and Jewellers Association (IBJA), spokesperson, Surendra Mehta, says, “Etf and gold MF is regulated and hence safe investment. Digital Gold with reputed companies is also good investment.” Mehta adds, “However bullion and jewellery is needed when someone wants to buy jewellery.”