Investment Tips: Buying gold ETF is better than buying jewelry, you get returns like pure gold, know how to invest..

Gold ETF: Investing in gold has always been safe and has given better returns. Earlier, the only way to invest in it was to buy physical gold (jewelry or coins), but now there are other options to invest in gold. These include gold bonds, gold ETFs, and gold funds. However, investment in gold ETFs is increasing rapidly. Let us tell you what is gold ETF and how to make good money by investing in it. Gold ETF fund is based on the falling and rising prices of gold. ETF unit means 1 gram of gold. Gold ETF can be bought and sold on BSE and NSE just like shares. However, in this, gold is not delivered to the investor, but electronic units of gold are given. Gold ETF units can be sold at any time.

What is Gold ETF
Gold ETF i.e. Gold Exchange Traded Fund, is a commodity-based fund for investing in gold. In other words, Gold ETF is like buying gold through an electronic medium. The special thing is that while you need thousands of rupees to buy gold, investment in Gold ETF can be made with less money.

Benefits of investing in Gold ETF
-Gold ETF can be bought and sold on the stock exchange like shares.

-The biggest advantage of Gold ETF is that there is no need to buy physical gold, so there is no fear of theft.

-Investing in Gold ETF is better than keeping gold jewelry or coins because it saves other security expenses including locker.

-Brokerage charge is 1% or less to buy Gold ETF. But, if you buy gold jewellery then you have to pay a making charge.

-Gold ETF, like gold, comes in handy in times of trouble because it can also be used as security to take a loan.

How to invest in Gold ETF
To invest in Gold ETF, one has to open a demat account. After this, you can buy units of Gold ETF available on NSE. Gold ETFs are deposited two days after placing the order in the demat account. Gold ETFs are sold only through the trading account.

Currently, there are 17 Gold ETF schemes in the market, whose average return in one year has been around 29.12 percent. At the same time, the average return in three years has been 16.93 percent and the average return in five years has been 13.59 percent. Among these, LIC MF Gold ETF has given the highest return in all time frames.