Investment Tips: Gold Fund or Gold ETF, which will give more profit, if you are in a hurry to fill your pockets then invest here..

Gold funds vs ETF: Ever since the downturn in the stock market started, investors have been looking for a safe way to invest. Although gold is considered the safest in terms of investment, a large amount is required to invest in it.

For this reason, keeping small investors in mind, the government has provided the facility of investing through the Gold Fund and Gold ETF. This investment is indirectly in gold and the return on it is also the same. Today we have brought information for you about which of the Gold Fund and Gold ETF is better in terms of investment.

What is a Gold Fund?

Investment in a Gold Fund is done like investment in a Mutual Fund, monthly SIP, and lump sum investment is done in it. You can redeem the Gold Fund anytime and can start with a minimum investment of Rs 1000.

What are Gold ETFs?

Gold ETFs are exchange-traded funds, in which investment is done in the same way as the stocks of companies are bought in the stock market. A demat account is required to invest in Gold ETFs. You can cash it according to the timing of the stock market.

Which is beneficial to invest in Gold Funds and Gold ETFs?

If we look at the returns of Gold Funds and Gold ETFs in the last year, the SBI Gold Fund has given a return of 100 percent, along with the ICICI Pru Regular Gold Savings Fund has given a return of 21.65 percent. On the other hand, Gold ETF has given an average return of 21.94 percent. In the last year, both types of mutual fund categories based on gold have given similar average returns.

Experts advise that gold funds are suitable for investors who are looking for systematic and long-term flexibility, while gold ETFs are ideal for investors who have demat accounts or who want to replace physical gold.