Everyone who actively participates in investment in the market must have heard about the Zerodha Gold Bond.
In simple terms, it is the government securities denominated in grams of gold.
For those who are not willing to hold the physical securities prioritize to invest in gold through Gold Bonds.
On maturity of the bond, the value will be redeemed in cash with a good interest in hand.
The investors who want to invest by maintaining the risk-free environment must choose Gold Bonds.
Among many brokers, Zerodha too offers the provision for the investment in Gold Bonds.
The investment done on the quantity of gold stays protected as you will receive the price of the market at the time of redemption. Thus, it is associated with the least associated risks.
Also, Gold bonds are free from certain issues like making charges, purity of gold, etc as the bonds are held in the books thus eliminating the risk of any loss.
You can buy the Sovereign Gold bond through Zerodha easily and conveniently.
Since the sovereign Gold bonds are issued by the Government of India with the fixed interest per annum (2.50% per annum).
You can reap interest earned twice a year and the last interest is provided on the maturity along with the principal.
You can avail the Zerodha Gold Bond in Demat or paper form that can be traded easily on the NSE (National Stock Exchange of India Limited).
Zerodha Gold ETF
ETF is something that one can buy and sell on stock exchanges like shares. It is similar to mutual funds in which trading is done in the stock exchange and the asset can be bought or sold using a Demat account.
Zerodha Gold ETFs hold the asset in the form of Gold Bullion of 99.5% purity thus there is the least issue of purity of the asset.
Gold ETF is one of the types of exchange-traded funds the asset for which is gold price in India. That is why you should always keep a check on Fluctuation in Gold Price.
No doubt investing in Zerodha ETF rather than the physical form of Gold is more beneficial as it eliminates the risk of getting less price due to impurity, offers more transaction costs.
Also, an investor can trade in Zerodha Gold ETF anytime during the trading session and that too by buying the least quantity equal to 1 gram.
Here is a brief explanation of why one should invest in Zerodha Gold ETF rather than investing in physical form.