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Should I invest in Gold ETF?

Dhirendra Kumar tells which medium of gold investment should you choose for an investment horizon of 10 years


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I want to buy a unit of Gold ETF every month with a horizon of 10 years. How should I choose one?
- Himanshu

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You don't need an expert to choose a Gold ETF. Because its design is very simple. The price of gold ETF is linked to the price of gold and the expense involved is very nominal. However, if you have a horizon of 10 years, I would suggest you to keep investing the money in a debt fund and buy Sovereign Gold Bond (SGB) issued by government of India in every 6-7 months. If you buy a gold ETF or a gold fund which invests in Gold ETF, some expenses are deducted, which is not the case in SGBs. Besides this, you will get an interest at an annual rate of 2.5 per cent and you will be able to redeem the money after eight years at the prevailing gold rate.

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