Gold investment opportunities at this Akshaya Tritiya!

May 10, 2024

As Akshaya Tritiya approaches, Zerodha Fund House (ZFH), India’s only passive AMC, highlights the significance of this auspicious day and the potential of gold investments. Akshaya Tritiya, falling on 10th May this year, holds great cultural and religious significance in India, marking prosperous beginnings.

Various options are available for investing in gold for individuals looking to diversify their investment portfolio or hedge against inflation. Here are some popular options, 1: Physical gold, 2: Sovereign Gold Bonds, 3: Digital Gold & 4: .Gold ETFs. When choosing a gold investment option, factors such as liquidity, storage costs, taxation, safety and investment horizon are typical considerations.

Inflow into Gold ETF recorded significant increase during and post pandemic Preference for Gold during the time of adversity is also notable from the investment inflow into Gold ETFs during 2020 when the world was engulfed with the pandemic of Covid.

From an analysis for the period between 2019 to 2023, yearly growth in assets under management of Gold ETFs have been on the rise. Gold ETF Asset Under Management (AUM) increased significantly and by around 150% from INR 5,527.76 crores in December 2019 to 13,819.39 crores in December 2020 during the pandemic period.

The AUM in Gold ETFs has been on a growth trajectory since then. As of December 2023, the AUM in Gold ETFs is valued at INR 25,959.02 cr, which is substantial growth of 27.29% from December 2022 and 87.84% from December 2020.

Vishal Jain, CEO, Zerodha Fund House said, “Investing in gold ETFs offers unparalleled advantages including liquidity, cost-effectiveness, and security. By investing in gold ETFs like Zerodha Fund House’s Gold ETF (NSE, BSE symbol – GOLDCASE), investors can eliminate the hassle of storage, purity concerns and insurance associated with physical gold, while enjoying the flexibility of investing on the stock exchange.”

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