Gold price in your comfort level? Want to buy? How to make it all easy | All in brief

Gold price in your comfort level? Want to buy? How to make it all easy | All in brief 
Gold price has been rising relentlessly and, barring a few hiccups, has jumped to amazingly high levels. However, is there still profit to be made from buying gold at these levels or should investors stay away from it and chose other options? Zee Business Expert Pankaj Mathpal explains how investors in gold can make it easy for themselves.
  
Make investment easier
Gold ETF, Gold fund or Sovereign Gold Bond are the various options open to investors to get some gold exposure. However, remember that trend to invest in gold has changed. How to make your portfolio shine? What are the tricks available and what is math behind tax on gold?
We reveal to you a number of aspects that need to be focused on: How much tax is imposed on gold investment and keep the answers and solutions extremely brief and simple? Among them: 

MF Vs gold, which one is better among both?

What are the available options to invest in gold?
Benefits of investing in sovereign gold, gold ETF

Gold and Investment
Gold is first choice of Indians
Indians have been investing in gold for long

Gold has a special place in Indian family
Indian families keep hold of 22-25 kg tonnes of gold: WGC
Indian rural populace keeps hold of maximum gold: WGC  

Gold is shining
Gold gave a return of 31% in last one year
Gold has generated a return of 10% in last 10 years
Weaker rupee in comparison to dollar led the price rise in gold
Demand for safe investment in gold increased
What should you do?
Allocate 10-15% corpus of your portfolio in gold

Math behind tax
Gold capital asset attracts capital gain tax
Short term capital gain will add in your income
STCG will be charged on the basis of tax slab
Selling of gold after three years will attract LTCG
LTCG is Long Term Capital Gain
LTCG 20% + surcharge
4% cess possible with Indexation benefit
Physical gold will attract GST

MF vs Gold
                                                 MF                                Digital Gold
Investment amount          starts from Rs 500      starts from Rs 1   
Liquidity                               Less                               More
tax Savings                          1.5 lakh in ELSS             None
Risk                                       Market risk                   Market risk             

Last performance 
Category                                   1YR(%)                                    3YR(%)                                      5YR(%)
Largecap                               1.58                                             4.45                                               7.60              
Midcap                                 9.09                                              0.34                                               6.74
Smallcap                              13.25                                           -2.40                                               6.48
ELSS                                      2.78                                           1.51                                               6.88        
Liquid fund                          4.45                                               6.02                                               6.43
Gold                                      29.19                                           17.84                                            11.92        

Annual return
Category                                2019(%)                  2018 (%)                    2017(%)
Largecap                              10.53                         1.10                             30.92
Midcap                                  2.77                         -12.16                           43.15
Smallcap                              -1.51                        -18.62                           54.8
ELSS                                     8.26                          -6.33                          38.4                  
Liquid fund                            6.33                           6.88                           6.40    
Gold                                      22.66                         6.89                           2.34

Options to Invest
Sovereign Gold Bond
Gold ETF
Gold Mutual Fund
Sovereign Gold Bond
Sovereign Gold Bond is a good option of investment
2.5% interest on year basis, lock-in for 8 years
Amount is auto credited in six months
Maturity amount in Sovereign Gold Bond is tax free
Tax will be charged on interest on the basis of tax slab
Charge on selling on stock exchange before maturity period
You can also take loan against gold bond
Next issue of Sovereign Gold Bond is from November 9-13

Benefits of gold bond
Available in bond paper and demat both
No risk of keeping gold in home
Sovereign gurantee of both investment and interest
Option of taking loan against bond also availabe
Individual will not have t pay Long Term Capital Gains
 

Gold ETF
Gold ETF / Gold Exchange Traded Fund
It can be invested like shares
Gold ETF price depends on price of gold
Trading and demat account compulsory for investment
Money could be invested in lumpsum or in SIPs.
How to invest in Gold ETF?
At least one unit needs to be bought for investment
Every unit is worth one gram 
Gold ETF could be purchased like stocks
Gold ETF could bought from existing trading account
Unit of a gold unit is kept in demat account
Gold ETF could be sold through trading account
 

Benefits of gold ETF
Provision of buying it online available
Gold ETF units could be bought like share
No threat of theft or being lost
Less purchasing charge as comparison to physical gold
Guarantee of 100% purity
Options to invest through SIP available
Can be invested in less quantity
Cheaper than physical gold in terms of tax  

Gold ETF                                       Return(1 yr)

Nippon India ETF Gold                   31.06%
HDFC Gold Exchange ETF               30.66%
ICICI Pru Gold ETF                           30.25%
Gold Mutual Fund
Gold Mutual fund is also type of a mutual fund
Investors money are invested in gold
Fund manager takes care of investors' money
Fund return depends on the mood of market

Invest as per your risk taking abilities

Gold Fund                                                                       रिटर्न (1 yr)
Kotak Gold Fund                                                             30.52%
SBI Gold Fund                                                                  31.80%
HDFC Gold Fund                                                              31.70%
Nippon Ind. Gold Saving Fund                                       31.52%
ICICI Pru Reg. Gold Fund                                                 30.50%
 

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Digital Gold
Gold coins, bar and jewellery could be bought online
Option to buy gold through app available
Can buy gold of your desired amount
24-carat pure gold is being offered
This is safe in digital form