Gold is not only used for making jewellery but also is used as a commodity that is investing on gold has become a major trends in our country there are many ways of buying gold which is by paper and physical means an individual can buy it in the form of jewellery, coins, and gold bars and on paper gold you can use gold exchange traded funds and sovereign gold bonds. there are also gold mutual funds which are further used to invest in gold commodity tips for gold are also taken by traders.

Exchange traded funds which is an alternate way of owning gold through paper is a favorable and cost effective way by gold exchange traded funds where such investments can happen and sovereign gold bonds. There mutual funds gold which further invest in gold ETFs. There are gold MFs which invest in the shares of international gold mining companies which is very much beneficial for future purposes.

Even though there are no entry and exit charges there are three costs that come with gold ETFs. The expense ratio which is generally low compared to other mutual funds and is around. Second, is the broker cost that needs to be accounted for every time you buy or sell gold ETF units. Another which technically is not a charge but impact returns is the tracking error.

Sovereign gold bond benefit those investors who are willing to invest in gold for a longer period as its maturity is after 8 years, although the lock-in ends from the fifth year. However, gold ETF provides much better liquidity than sovereign gold bonds. owing units is much easier than sovereign gold bonds as it's entirely online in case of exchange traded funds.

Author's Bio: 

I am a research analyst from Moneymaker research who provides daily suggestions for Equity and commodity for free MCX tips visit our site and avail a trial for 2 days.