Best gold saving schemes for good returns
Gold, a symbol of wealth and security, holds a special place in the hearts and portfolios of many, particularly in India, a country with an immense appetite for the asset. Its significance extends beyond mere adornment; gold is deeply ingrained in the cultural and economic fabric of Indian society, often seen as a haven during uncertain times. In the face of geopolitical upheavals, gold has historically proven its mettle as a stabilising asset, offering a hedge against market volatility and currency fluctuations.
In the realm of gold investments, options abound. From traditional physical gold to more contemporary forms like digital gold and gold on Gullak, investors have a plethora of choices to diversify their holdings. In this blog we'll cover different gold saving schemes so that investors can make informed choices while choosing a gold asset.
What are Gold Saving Schemes?
Gold saving schemes are financial products that enable individuals to invest in gold in a structured and disciplined manner. Banks and jewellers primarily offer gold saving schemes, allowing customers to deposit a fixed amount of money every month for a specified tenure. At the end of the tenure, the investments can be withdrawn in gold or cash(INR). This approach simplifies the process of gold acquisition & investment, making it accessible even for those with limited investment knowledge or resources.
Banks and jewellers play a pivotal role in gold saving schemes. Banks offer gold saving schemes linked to gold ETFs or gold funds, ensuring a digital and secure investment. On the other hand, Jewellers typically focus on physical gold, allowing customers to buy jewellery or gold coins at the end of the investment period. Gold saving schemes often include bonuses or discounts on making charges, enhancing customer value.
Different Types of Gold Saving Schemes
| Investment Type | Features |
|---|---|
| Gullak | Gullak is an innovative gold saving scheme that lets you start buying gold from just ₹100/day. Over time, this gold accumulates and builds 10 gms gold for you, with 100% flexibility to pause or restart anytime. |
| Digital Gold | Digital Gold allows investors to buy, sell, and hold gold in a digital format. This gold saving scheme eliminates the hassles of storage and security, assuring investors of purity and safety. Returns are equivalent to gold's annual returns. |
| Gold ETFs | Gold Exchange-Traded Funds (ETFs) offer a blend of traditional gold investment with the flexibility of stock investments. Returns are equivalent to gold's annual returns. They can't be withdrawn as physical gold. |
| Gold Mutual Funds | These funds, which can be considered a type of gold saving scheme, invest in gold ETFs and other gold-related assets. They cater to those who wish to invest in gold through a professionally managed fund without the hassle of dealing with physical gold directly. Here as well, returns are equivalent to gold's annual returns |
| Investment in Solid Gold | The most traditional form of a gold saving scheme involves investing in physical gold—bars, coins, or jewellery. If you're looking at gold as an investment option, these schemes should be avoided due to hefty making & wastage charges. |
| Sovereign Gold Bonds | These bonds are a unique type of gold saving scheme issued by the government. They are denominated in grams of gold. SGBs provide extra 2.5% returns(in INR) on the principal amount. They usually come with a lock-in period of 8 years. |
Invest in the Best Gold saving scheme
Each of these gold saving schemes serve different investor needs, from the simplicity and returns to the modern convenience of digital formats. Whether through a gold saving scheme, a gold savings plan, savings in gold, or a gold purchase scheme, investors have many ways to harness this timeless asset's value and security.
Gullak Vs Other Gold Saving Schemes
When comparing Gullak with traditional gold saving schemes, the key difference lies in the flexibility and accessibility Gullak offers. Here's a simplified comparison:
| Investment Type | Initial Investment | Returns after 5 Years * |
|---|---|---|
| Gullak | ₹100,000 | ₹1,68,000 [~11% CAGR] |
| Digital Gold | ₹100,000 | ₹1,68,000 [~11% CAGR] |
| Gold ETFs | ₹100,000 | ₹1,68,000 [~11% CAGR] |
| Sovereign Gold Bonds | ₹100,000 | ₹170,895 [~11% CAGR + extra 2.5% on the principal] |
| Gold Mutual Funds | ₹100,000 | ₹1,68,000 [~11% CAGR] |
| Physical Gold | ₹100,000 | ₹1,68,000 [~11% CAGR](However, physical gold comes with hefty making & wastage charges, so even if the asset appreciates, it'll take a few years to breakeven) |
*Note: The returns for Digital Gold, Gold ETFs, Gullak and Physical Gold are based on the Compound Annual Growth Rate (CAGR) of gold, which is approximately 11% per annum. The figures for SGB and Gold Mutual Funds are provided as specific estimates.
Save in gold with 100% flexibility
Gullak's Gold Saving Scheme is Much More Than Gold
Gullak distinguishes itself by making gold saving simple, flexible and accessible. Here's a breakdown of the benefits of Gullak in a tabular form:
| Feature | Description |
|---|---|
| Gold Accumulation | Start buying gold from just ₹100/day; over time it accumulates and builds 10 gms gold for you. |
| Liquidity | Option to withdraw investments anytime without penalty fee |
| 100% Flexibility | Pause or restart your savings any time, with daily, weekly or monthly SIPs or one-time transactions. |
| Diversification | Adds a unique element to investment portfolios, balancing risk with its negative correlation to economic uncertainties. |
| Verification by Augmont, India's 3rd largest gold refinery | Ensures the authenticity and purity of gold, verifies & vets the jewellers onboarded on Gullak for credit worthiness, annual turnover & experience in the market |
| 100% Safe | All the gold you buy is 100% backed and securely stored on your behalf, instilling trust in the gold saving scheme. |
| Jeweller Association | All jewellers are verified by Gullak & Augmont. Among the plethora of factors taken into consideration annual turnover(more than 20,000 Cr+) & experience in the market(more than 20 years) are the most important ones. |
100% safe, 100% flexible
Gullak provides a unique opportunity for investors to benefit from the appreciation in gold prices while saving flexibly, a little at a time. This innovative approach makes it an attractive option for those who want to establish gold as a mainstream investment asset.
Conclusion
Over the years, gold has consistently proven to be a resilient and profitable investment, offering substantial returns. Its versatility is evident in its various forms of investment, ranging from physical gold to digital platforms. Each form, be it gold saving schemes, gold savings plans, or gold purchase schemes, caters to different investor needs and preferences. Specifically, Gullak's innovative approach in the gold investment landscape stands out for making gold saving simple, flexible and accessible.
