{"id":7863,"date":"2024-03-28T06:19:37","date_gmt":"2024-03-28T06:19:37","guid":{"rendered":"https:\/\/lxme.in\/?p=7863"},"modified":"2025-06-17T07:55:12","modified_gmt":"2025-06-17T07:55:12","slug":"gold-etf-vs-gold-mutual-fund","status":"publish","type":"post","link":"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/","title":{"rendered":"Gold Mutual Funds vs Gold ETF: Understand the Difference"},"content":{"rendered":"\n<p>The love story between women and gold is well known. For years, women have bought gold jewelry and stored them, but since then smarter and better options for gold investment have emerged, and women now have the opportunity to invest in their favorite asset with ease and without the fear of theft. Two such options are: Gold Mutual Funds and Gold ETFs. Both can often be accessed through a <strong><a href=\"https:\/\/lxme.in\/invest\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lxme.in\/invest\/\" rel=\"noreferrer noopener\">mutual fund investment platform<\/a><\/strong>. Let\u2019s discuss in this blog what is the difference between Gold ETF and Gold Mutual Fund and which is better, Gold ETF or Gold Mutual Fund.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#What_are_Gold_ETFs\" >What are Gold ETFs?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#Features\" >Features<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#How_do_they_work\" >How do they work?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#What_are_Gold_Mutual_Funds\" >What are Gold Mutual Funds?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#Features-2\" >Features<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#How_do_they_work-2\" >How do they work?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#Gold_ETF_vs_Gold_Mutual_Fund\" >Gold ETF vs Gold Mutual Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#Which_is_better_Gold_ETF_or_Gold_Mutual_Fund\" >Which is better Gold ETF or Gold Mutual Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#How_is_Gold_MF_different_from_Gold_ETF\" >How is Gold MF different from Gold ETF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#FAQs\" >FAQ\u2019s<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#Whats_the_minimum_amount_needed_to_start_investing_in_gold_mutual_funds\" >What&#8217;s the minimum amount needed to start investing in gold mutual funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#Do_I_need_a_demat_account_to_invest_in_Gold_Mutual_Funds\" >Do I need a demat account to invest in Gold Mutual Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/#Are_there_any_gold_ETF_Tax_exemption\" >Are there any gold ETF Tax exemption?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Gold_ETFs\"><\/span><strong>What are Gold ETFs?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Gold ETFs (Exchange Traded Funds) are passively managed funds that provide a way to invest in gold without physically storing the gold bought.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features\"><\/span><strong>Features<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They invest in gold of 99.5% purity and one unit of gold ETF is equal to one gram of gold. Minimum Investment amount is 1 unit.<\/li>\n\n\n\n<li>For every unit of gold ETF sold, the fund house stores an equivalent amount of physical gold<\/li>\n\n\n\n<li>They are traded on the stock exchange and their value is tied to the price of physical gold. &nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_they_work\"><\/span><strong>How do they work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An example &#8211;<\/p>\n\n\n\n<p>Sheena wants to invest in gold ETFs. To do so, her first step is to open an online trading and demat account. Once done, she selects a particular gold ETF she wants to invest in from the many types of Gold ETF available in the market. She invests through Lump Sum and decides to buy 3 units of the Gold ETF. She fills in her details and starts investing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Gold_Mutual_Funds\"><\/span><strong>What are Gold Mutual Funds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Gold Mutual Funds are mutual funds that invest in gold and different gold-related assets including Gold ETFs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features-2\"><\/span><strong>Features<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They are professionally managed funds that invest in gold assets on your behalf.<\/li>\n\n\n\n<li>Gold Mutual funds invest in Gold ETFs and in turn, Gold ETFs invest in physical gold.<\/li>\n\n\n\n<li>They are bought from a fund house and you can invest with just Rs.100.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_they_work-2\"><\/span><strong>How do they work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An example &#8211;<\/p>\n\n\n\n<p>Shilpa wants to invest in gold MFs. She decides to invest in <a href=\"https:\/\/lxme.onelink.me\/95JV\/portfoliodetail45\" target=\"_blank\" rel=\"noopener\"><strong><u>LXME\u2019s Rs 100 Gold Fund<\/u><\/strong><\/a>. All she has to do is download the LXME app, she can begin investing without a demat account! She can invest through SIP or Lump sum, in fact, she has the option to start investing with just Rs. 100.<\/p>\n\n\n\n<p><em>Check out <\/em><a href=\"https:\/\/lxme.onelink.me\/95JV\/portfoliodetail45\" target=\"_blank\" rel=\"noopener\"><strong><em><u>LXME\u2019s Rs. 100 Gold Fund<\/u><\/em><\/strong><\/a><em>&nbsp;and start investing in gold mutual funds with as little as Rs. 100.<\/em><em><\/em><\/p>\n\n\n\n<p>Now let\u2019s have a look at the difference between gold ETF and gold mutual fund<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gold_ETF_vs_Gold_Mutual_Fund\"><\/span><strong>Gold ETF vs Gold Mutual Fund<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>PARAMETERS<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>GOLD ETF<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>GOLD MUTUAL FUND<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Meaning<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">They allow investors to invest in gold of 99.5% purity without physically storing it. Investors hold paper gold while the fund house keeps storage of the actual gold.<\/td><td class=\"has-text-align-center\" data-align=\"center\">They are open-ended mutual funds that invest in Gold ETFs and other gold-related assets. They are professionally managed and monitored.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Minimum Amount<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">1 unit (Price of 1 gram of Gold)<\/td><td class=\"has-text-align-center\" data-align=\"center\">Rs. 100, SIP or Lumpsum<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>SIP Availability<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Cannot invest through SIP<\/td><td class=\"has-text-align-center\" data-align=\"center\">Can invest through SIP<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Demat a\/c<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Demat A\/c is mandatory<\/td><td class=\"has-text-align-center\" data-align=\"center\">Demat a\/c is not required<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Mode of holding<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Held in Demat Account<\/td><td class=\"has-text-align-center\" data-align=\"center\">Held by Fund House<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Pricing<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Price depends on the market value of gold<\/td><td class=\"has-text-align-center\" data-align=\"center\">Price depends on the NAV of Fund<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Liquidity<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Can be traded on the stock exchange<\/td><td class=\"has-text-align-center\" data-align=\"center\">Bought and sold with the fund house, based on the NAV of that day<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Management Method<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Passively managed<\/td><td class=\"has-text-align-center\" data-align=\"center\">Actively managed by professionals<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Risk<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Subject to market risk<\/td><td class=\"has-text-align-center\" data-align=\"center\">Subject to market risk<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_is_better_Gold_ETF_or_Gold_Mutual_Fund\"><\/span><strong>Which is better Gold ETF or Gold Mutual Fund<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Gold Mutual Funds, Gold ETFs, SBGs, etc. are all smarter ways to invest in gold. They are safe and secure options to gain the advantage of gold investment as there is no risk of theft. Gold ETFs and Gold Mutual Funds have many similarities. They both provide alternatives to physical gold, eliminate the risk of storage, and help investors save on various costs they might otherwise incur while purchasing physical gold\/gold jewelry.<\/p>\n\n\n\n<p>However, there are a few points of differences between the two that need to be considered from an individual point of view before making an investment decision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_Gold_MF_different_from_Gold_ETF\"><\/span><strong>How is Gold MF different from Gold ETF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol style=\"list-style-type:1\" class=\"wp-block-list\">\n<li>You can invest via SIP. You can begin with just Rs. 100.<\/li>\n\n\n\n<li>They are actively managed by professionals.<\/li>\n\n\n\n<li>You can redeem your units on demand.<\/li>\n\n\n\n<li>You don\u2019t need a demat account to invest.<\/li>\n<\/ol>\n\n\n\n<p>If a woman prefers to invest with a small sum of money, via SIP and Lump sum and without a demat account, Gold MF could be a good investment option for her and the advantages of Gold MF will outweigh the benefits of buying gold ETF.<\/p>\n\n\n\n<p>In conclusion, the ultimate&nbsp;decision between investing in Gold ETF vs Gold Mutual Fund depends on a woman\u2019s investment goals, risk appetite and her preference in investment method.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQ\u2019s<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1710521953552\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Whats_the_minimum_amount_needed_to_start_investing_in_gold_mutual_funds\"><\/span><strong>What&#8217;s the minimum amount needed to start investing in gold mutual funds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can start investing in gold mutual funds with a minimum of Rs. 100.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1710521973677\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Do_I_need_a_demat_account_to_invest_in_Gold_Mutual_Funds\"><\/span><strong>Do I need a demat account to invest in Gold Mutual Funds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, you do not need a demat account to invest in Gold Mutual Funds.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1710522004844\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Are_there_any_gold_ETF_Tax_exemption\"><\/span><strong>Are there any gold ETF Tax exemption? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, there are no tax exemptions as such on Gold ETFs in India. Gold ETFs are taxed according to the investor\u2019s applicable tax slab, irrespective of the holding period.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong><em>Share this blog with your family and friends if you find it insightful!!<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Download the<\/em><\/strong><a href=\"https:\/\/lxme.onelink.me\/95JV\/lxmeblog\" target=\"_blank\" rel=\"noopener\"><strong><em><u>&nbsp;LXME app <\/u><\/em><\/strong><\/a><strong><em>for more such content!<\/em><\/strong><\/p>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What's the minimum amount needed to start investing in gold mutual funds?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"You can start investing in gold mutual funds with a minimum of Rs. 100.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Do I need a demat account to invest in Gold Mutual Funds?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"No, you do not need a demat account to invest in Gold Mutual Funds.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Are there any gold ETF Tax exemption?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"No, there are no tax exemptions as such on Gold ETFs in India. Gold ETFs are taxed according to the investor\u2019s applicable tax slab, irrespective of the holding period.\"\n    }\n  }]\n}\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>The love story between women and gold is well known. For years, women have bought gold jewelry and stored them, but since then smarter and better options for gold investment have emerged, and women now have the opportunity to invest in their favorite asset with ease and without the fear of theft. Two such options <a href=\"https:\/\/lxme.in\/v1\/gold-etf-vs-gold-mutual-fund\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  Gold Mutual Funds vs Gold ETF: Understand the Difference<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":7940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[653,649],"tags":[],"class_list":["post-7863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gold","category-mutual-funds"],"acf":[],"_links":{"self":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/7863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/comments?post=7863"}],"version-history":[{"count":3,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/7863\/revisions"}],"predecessor-version":[{"id":17385,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/7863\/revisions\/17385"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media\/7940"}],"wp:attachment":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media?parent=7863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/categories?post=7863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/tags?post=7863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}