Gold Jewellery Vs Gold Mutual Funds: Don’t Buy Gold Without Knowing THIS

Gold Jewellery Vs Gold MFs: In today’ fast-developing world, investing gold is very important. For many years gold jewelry had been considered as an intrinsic exhibit of wealth, culture, and safety. Be it a wedding, special festival, or just a legacy store of value by families. But jewelry in most cases turns out not to be a good investment as it does have the market value returns.

Surcharges on Gold Jewellery
When you purchase gold jewelry worth Rs 1 lakh, a hefty proportion goes into making charges – sometimes almost up to 15%. On top, add 3% GST, and you’ve already lost money before even wearing it. Plus, upon selling it after resale deductions sealed further cuts off income. After five years, even with the inexorable rise in price with gold, the ultimate ROI from jewelry becomes so much lesser than expected.

Gold Mutual Funds: The Better Option

Most hidden costs, which are inherent in any other form of holding gold investment, get eliminated in gold mutual funds. There do not exist making fees, GST, or resale charges, but there is an expense ratio of a meager 1%. This ensures that your investment will be very much in line with the actual appreciation of the gold prices. If gold appreciates at 92% over a period of five years, then your investment would mirror almost that increase and give a much stronger return compared with physical jewelry.

Actual Returns: The Clash

ROI on Gold Jewelry after 5 years – ~53%

ROI of Gold Mutual Fund post 5 years- ~87%

There is a huge difference a difference that shows how emotions can cost you financially. Beautiful pieces of jewelry may adorn a locker but as far as investment goes, it cannot stand the test of competition against gold MFs.

Also Read: Gold vs Stocks vs SBI FD: Which Gave Best Returns Over 10 Years?

Gold shall remain as it is but still varies in the mode of investment. For one who wants to save wealth and create returns, the choice would be the most intelligent and most rewarding-Gold Mutual Funds. Let the tradition be sentimental, but let investments be strategic.