Gold Fund or Gold ETF?

What is the difference between a gold fund and a gold ETF? Which is better?
-Pradeep

A gold fund is an open-ended fund that invests in a gold ETF. For an investor, buying a gold fund is easier because you don’t need a demat account, which is required to invest in a gold ETF. However, this convenience comes at a slightly higher cost. On the performance front, both types of funds track the price of gold and give similar returns.

This article was originally published on August 28, 2012.