Xplaned: Why Investors Should Invest In Gold ETFs And Gold Funds?

Gold Glitters: There has been a huge jump in gold prices during the festive season. Only from the beginning of November till now, there has been a jump in the price of gold by Rs 2,000 per 10 grams. Now the wedding season has started. Gold prices are expected to rise further due to increased demand. But the process of increasing gold prices is not going to stop here.

Growing Gold ETFs, Investing in Gold Funds

In fact, the way the country is witnessing an increase in inflation in the world, after this, there is a possibility of a further jump in the prices of gold. This is the reason that the interest of investors towards investing in gold has increased. In recent times, there has been a tremendous increase in gold ETFs and other gold funds. In the month of October alone, more than Rs 300 crore has been invested in Gold ETFs. Although it is less than the month of September. The reason is the rise in gold prices. In December 2020, there used to be only 8.87 lakh folio numbers in Gold ETFs. Their number has increased by 200 percent to 26.6 lakh in October 2021. A total of Rs 3818 crore has been invested in Gold ETFs this year.

Why you should invest in Gold ETFs, Gold Funds

According to market experts, during the boom in the stock market, investors are more interested in buying stocks, but as inflation is increasing, investors should also invest some part of their investment in gold through Gold ETFs and Gold Funds. .

Gold Funds Giving Higher Returns

Due to rising inflation, gold prices are increasing, so in the last one week, gold funds have given the highest return in mutual fund schemes. According to the figures of wholesale price-based inflation rate in India on Monday, the inflation rate has been 12.54 percent. If inflation continues to rise, then central banks like RBI will have to increase the interest rate. This is the reason why investors are increasing investment in Gold ETFs and Gold Funds for hedging.

Investing in gold will be beneficial

The rise in inflation may affect the profits of the corporates. There may be a hindrance in the economic recovery and due to this the stock market may see a decline. In such a situation, instead of the stock market, investing in gold can increase. In such a situation, investors investing in Gold ETFs and Gold Funds can get higher returns.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in gold is subject to market risks. Always consult an expert before investing money as an investor. Anyone from ABPLive.com Also investing money is never advised here.)

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