Gold Mutual Fund: Why are investors so attracted to Gold Mutual Funds? You can start investing without a Demat account..

In India, gold is not just a metal, but a symbol of trust, tradition, and future security. It has always been a preferred investment option for people. However, in today's digital age, the way of investing in gold has also changed. Now, you don't need to go to a jewelry shop or keep it in a locker to buy gold. A smart alternative to this change is Gold Mutual Funds.

If you want to invest in gold but want to avoid the hassle of buying physical gold, these funds can be a great option for you.

What are Gold Mutual Funds?
Gold Mutual Funds are a type of Fund of Funds. This means that these funds do not invest directly in physical gold, but instead invest in Gold ETFs. Gold ETFs are schemes that invest in physical gold and are traded on the stock exchange.

When you invest in a Gold Mutual Fund, your fund manager buys Gold ETFs with that same amount. Therefore, your returns are based on the fluctuations in the price of gold.

Advantages of Investing in Gold Mutual Funds
SIP Option - Big Investment with Small Amounts
The biggest advantage of Gold Mutual Funds is that you can start a SIP with as little as ₹500. This means that a large lump sum amount is not required.

No Demat Account Required
Compared to Gold ETFs, you don't need a Demat account to invest in Gold Mutual Funds. You can invest directly through the app, website, or AMC.

No Worries About Purity
Physical gold has problems with adulteration or purity, while in Gold Mutual Funds, you get the assurance of 99.5% pure digital gold.

Buying and Selling is Very Easy
You can buy or sell these funds at any time. The money comes directly into your bank account within a few days.

No Making Charges
Buying physical gold incurs making charges of up to 5-15%. There are no such charges in Gold Mutual Funds.

Things to Keep in Mind Before Investing

Expense Ratio

The fund house charges an expense ratio for fund management. This is generally between 0.5% and 1%. Tracking Error

Sometimes there is a slight difference between the price of a Gold ETF and the fund's return; this is called Tracking Error.

Tax Rules

Selling before 24 months: Tax is levied according to your income tax slab.
Selling after 24 months: LTCG tax of 12.5% ​​+ Cess is applicable.
How to Invest in Gold Mutual Funds?

Step 1: Complete KYC (Online with PAN and Aadhaar)

Step 2: Choose a reliable AMC such as SBI, HDFC, or ICICI

Step 3: Select a Gold Fund and check its Expense Ratio

Step 4: Decide whether to invest via SIP or Lump-Sum

Step 5: Complete the investment through the app or website

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