Which is the Cheapest Way to Buy Gold with Just Rs. 100 in India
Suppose I have only small amounts like Rs. 100 to spare each time, what’s the most affordable and easy way to start buying gold? I’m worried about the hidden fees eating into my Rs 100?
I know about options like digital gold, mutual funds, and ETFs. But I’m not sure which one of these is most cost-effective when the investment amount is as low as Rs. 100. Also, tell me if it’s safe for beginners.
How can I grow this slowly over time?
MANI Answered question
If you want to invest Rs. 100 occasionally, without any fixed pattern and with a savings mindset, then a gold fund or a gold ETF will be better. I know that some people might be promoting Digital Gold as a suitable bet, but as per my calculations (cost of investing), a gold fund or a gold ETF is a far better option.
Assuming that gold will appreciate at an average rate of 9% per annum for the next 5 years, the net effective return (after considering all costs) will be as follows:
- Gold ETF: 8.30% per annum
- Gold MF: 8.35% per annum
- Digital Gold: 7.69% per annum
Disclaimer: This content is for informational purposes only and should not be considered investment advice.
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