Akshaya Tritiya 2024: Why investing in Gold ETFs is a good option

Buying of gold on Akshaya Tritiya is considered one of the sacred days to invest in the yellow metal. Some say this means prosperity that never leaves. In the past, gold was often bought physically; today, there are modern investing ways such as Gold ETFs (Exchange-Traded Funds). However, buying Gold ETFs on Akshaya Tritiya is good because one participates in the age-old culture of buying gold and still engaging in new methods of investing.

Why is the Gold ETF a good option?

Instrument wise the Gold ETF offers a more efficient and accessible way to invest in gold. Hence, their high liquidity, ease of management and cost-effectiveness make it possible for many investors to consider them when looking for financial instruments to use in investing.

• No physical holding

Unlike physical gold, you don't have to worry about theft, damage, or secure storage with Gold ETFs. They are held electronically in a demat account, similar to stocks.

• Lower fees

Gold ETFs generally have lower expense ratios compared to gold mutual funds. It also avoids making charges associated with buying physical gold.

• Fractional investment

You can buy and sell ETFs in small units, allowing you to invest even with a smaller amount compared to buying a whole gold bar.

• Easy to trade

Gold ETFs trade on stock exchanges just like shares, offering high liquidity. You can easily buy and sell them whenever you want.

• Real-time tracking

Gold ETF prices directly reflect the underlying gold price, providing transparency and allowing you to monitor your investment easily.

• Diversification

Gold ETFs can add diversification to your portfolio, potentially reducing overall risk.

• Hedge against inflation

Gold is often seen as a hedge against inflation, as its price can rise with inflation.

Following are the top five Gold ETFs (AUM-wise) with historical Returns

Returns are in %

For anyone who would want to invest in gold without stress or risks and high yields, then investing in Gold ETFs seems unbeatable compared to buying the actual precious metal.