Gold ETF vs Sovereign Gold Bond which is Best?

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Gold ETF vs Sovereign Gold Bond which is Best?
Gold ETF vs Sovereign Gold Bond
Gold ETF vs Sovereign Gold Bond which is Best? As we learn earlier about ETFs. Same as Sovereign Gold Bond is an popular investment process in India.

This plan is fully managed by the government. So there is no risk factor obtained, Although, ETF Gold doesn’t have any risk factor. Sovereign Gold Bond is an unimaginable investment plan if you want to make a long-term investment in gold.

Sovereign Gold Bond or Gold ETF?

yes, all investment plans have some similarities and differences. Let me analyze that, through the following chart.

 Gold ETFSovereign Gold Bond
SIPSIP is not possible at Gold ETF. However, in this process, like the stock market, the per-unit price is calculated. You can trade through a Demat account only.The same is here also, Sovereign Gold Bond you can buy from the stock exchange or when the RBI releases the new issue.
LiquidityLiquidity is not high, I would say moderate because ETF marketing in our country is not done properly. So the sale is not fast, Although now there are no problems selling it because of the trend.In this case, the liquidity is moderate, because the transaction of gold bonds is not so much here. However, as you wish to invest, you can.
  Minimum InvestmentIn the case of Etf, it is mandatory to invest a minimum of 1 gram.Sovereign Gold Bond is the same, Minimum 1 gram investment is mandatory.
DeliveryDelivery is possible if your gold quantity is 1 kgPhysical Delivery is not possible in this case, as the bond is in an electronic documentation form.
    LoanLoans are not possible because gold is in bullion form here. As per the government’s rules, bullion does not grant any loan.Sovereign Gold Bond provides this facility. You can take a loan again with this bond, deposit your funds with Collaterals.
How to buyYou can buy it through a Demat account. also through Zerodha, Upstox, etc.Sovereign Gold Bond is issued three to four times a year through RBI. So you can buy IT through the bank. also, you can buy from stock holding corporation companies.
GSTNot ApplicableSame as.
Storage and Delivery ChargesHere the bond is in a digital form so there is no storage tax.It is a form of digital documentation, so there is no storage tax applicable.
Expenses RatioExpenses here are minimal, in the form of manageable charges, that is 0.5% to 1%.No maintenance cost here.
Exit LoadExit load is not applicable here.There is no possibility of Exit Load.
Down Payment, BrokerageThere is no brokerage or charges. But if you buy from Zerodha, Upstox, etc there are few government charges.No charges are applicable here.
Returns in 5 yearsI assumed 40% growth in 5 years, how much will you get here? 5-year charges (Expenses Ratio is 5%). so 40% -5% = 35% you will get,In this case, I assume the same 40% growth. But RBI pays this bond 2.5% interest to the consumer every year. So the return amount will be 2.5% * 5 = 12.5% + 40% = 52% on the total investment you will get.
Gold ETF vs SGB which is the Best


So, from the point of view of returns, we can understand Gold ETF vs Sovereign Gold Bond which is Best? Sovereign Gold Bond is the best investment. However, in all cases, there are many advantages and disadvantages. Before buying any bond, you should know about the all causes and rules.

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