Domestic gold prices have skyrocketed 42.5% in the past year, attracting both new and seasoned investors. But how can you invest without storing physical gold or worrying about purity? The answer: gold ETFs and gold mutual funds.

What are gold ETFs?
Gold ETFs invest in physical gold, gold futures, or both, tracking gold prices closely. They are traded like stocks, giving flexibility to buy or sell anytime.

Gold mutual funds are ideal for investors without a demat account, as they invest in gold ETFs for you. Multi-asset funds also include gold, but allocation varies by scheme.

Why choose gold funds over physical gold?

• No storage hassle

• No making charges or purity concerns

• Low-cost exposure to the yellow metal

Currently, 21 gold ETFs manage Rs 66,664 crore with nearly 7.87 million investors. Past returns are impressive—42.55% in one year, and 13–26% annualised over longer terms.

Experts recommend allocating around 10% of your portfolio to gold. Those already above 10% should consider booking profits and reallocating carefully.