Best gold ETF

Which gold ETF is the best? Can I invest in it via a Systematic Investment Plan (SIP) through my demat account?
- Ravi Kumar

If you have a trading account linked to your demat account, you can buy and sell Gold ETFs.

But we don't advocate investing in gold. Gold is very different from other investments. For example, bonds pay you an interest. Stocks offer you a part ownership of the company. The value of gold, on the other, is determined by its demand and supply.

Gold had a dream run in the backdrop of global economic turmoil in 2008 when equity and bonds were faring badly. However, it has been performing very badly in the last five years. Gold funds have given a paltry 3 per cent returns in the last five years. It has offered negative returns in the one- and three-year periods.

This article was originally published on December 28, 2015.