Investment Education
Gold Mutual Funds
Gold mutual funds invest in gold ETFs, giving you exposure to gold without needing a demat account. Compare them with digital gold to choose what suits you best.
How Gold Mutual Funds Work
Gold mutual funds are Fund of Funds (FoF) that invest in gold ETFs. You buy units of the mutual fund, which in turn buys gold ETF units.
The fund manager handles the ETF purchases, so you don't need a demat account. NAV is calculated daily based on the underlying gold ETF's value.
You can invest via SIP (from ₹500/month) or lump sum. Redemption proceeds are credited in T+3 business days.
Pros & Cons
No demat account needed
SIP available from ₹500
SEBI regulated and transparent
Tax-efficient with indexation
Expense ratio reduces returns
T+3 day redemption delay
Tracking error vs actual gold price
No physical delivery option
Gold Mutual Fund vs EKAM Digital Gold
| Feature | Gold Mutual Fund | EKAM Digital Gold |
|---|---|---|
| Minimum Investment | ₹500 (SIP) | ₹1 |
| Expense Ratio | 0.5–1.5% | None |
| Demat Required | No | No |
| Physical Delivery | Not possible | Available |
| Liquidity | T+3 days redemption | Instant |
| Trading Hours | Until 3 PM cut-off | 24/7 |
| Tax Treatment | 20% LTCG (3+ yrs) | 20% LTCG (3+ yrs) |
| Tracking Error | Yes (fund dependent) | None — direct gold price |