What is a Gold Investment Plan and How to Invest in Digital Gold?

By Team Gullak
Apr 2, 2024
4 min read

As an investor, it is essential to understand the paramount importance of diversifying your portfolio. Gold, with its timeless allure and resilience, serves as a crucial asset in achieving portfolio diversification combined with massive returns. It acts as a hedge against economic uncertainties, offering a stable foundation for your portfolio. Take the instance of gold prices between Diwali of 2022 to 2023, which have risen from ₹50,580 per 10 gm to ₹59,654 per 10 gm levels on Multi Commodity Exchange (MCX), logging to the tune of 18 per cent.

However, the traditional approach of investing in physical gold comes with its own set of limitations. Issues, such as storage concerns, the risk of theft and the inability to easily liquidate gold, can pose challenges. The concept of a gold investment plan aims to overcome these limitations, with digital gold leading the way.

Gold Investment Plan: A Digital Revolution

A Gold investment plan is a financial instrument that breaks the physical chains and lets you own gold without worrying about all the additional charges like locker fees, making charges & wastage charges associated with physical gold. These plans allow you to invest in gold digitally and enjoy flexibility, accessibility and potential benefits like extra returns. They eliminate the need for physical storage and allow you to buy and sell gold in smaller denominations.

The Big Three Gold Investment Plans

  1. Sovereign Gold Bonds (SGBs): SGBs are government-backed securities that allow you to invest in gold in a digital form. These bonds are denominated in grams of gold and the government periodically opens subscription windows to purchase them. Sovereign Gold Bonds(SGBs) provide 2.5% extra interest on top of the gold price appreciation(historically 11%pa). The interest is credited in a half-yearly manner. They come with a long lock-in period of 8 years. SGBs open up in tranches, approximately 2-3 times a year. Due to these, Sovereign Gold Bonds aren't the best monthly gold schemes.
  2. Gold Exchange-Traded Funds (ETFs): Gold ETFs are Exchange Traded Funds that represent digital units of physical gold. They are traded on stock exchanges, offering you the convenience of buying and selling gold in small units. They aim to track the domestic price of physical gold and provide a cost-effective way to invest in gold without the need for physical storage. However, like any market-traded instrument, gold ETFs are subject to market risks and liquidity fluctuations. As per a study by FYERS, between the end of 2017-2022, Gold ETFs delivered an average annualised return of 12.4%.
  3. Gullak Gold+: Gullak Gold+ is at the forefront of the digital gold revolution. It combines the timeless appeal of gold with extra returns. Through a secure and innovative approach, Gullak Gold+ delivers extra 5% gold every year on top of the annual gold price appreciation (around 11%), taking your total returns to a remarkable 16% per annum. This is the highest return of gold in India.

Invest in the best gold investment plan!

Table: A Quick Gold Investment Plan comparison

FeaturesSGBsGold ETFsGullak Gold+
Returns2.5% Fixed interest(Simple Interest basis) + gold appreciationgold appreciationExtra 5% returns(in gold grams, compounded annually) + gold appreciation
AvailabilityLimited issuance windowsAvailable when the share market is open24/7 accessibility via the Gullak Money app
Liquidity8 year lock-in period. Can be sold in secondary markets pre-maturity but at 6-7% discounted ratesCan be withdrawn anytime when the stock market is open.Can be sold any time, without incurring any penalty fee.

Advantages of Investing in Digital Gold via Gullak Gold+ Gold Investment Plan

Gullak is a pioneer in the digital gold domain. Gullak's Gold+ gold investment plan is a superior solution with a host of benefits -

  • Extra returns: You have the potential to earn up to 5% extra gold grams on top of the market return rate, providing compounded growth. If you invest in 100 grams of gold today, you'll have 105 grams of gold in a year & 148 grams in 8 years.
  • High growth potential: While the annual gold rate growth is typically 11%, Gullak Gold+ allows you to achieve up to 16% growth on your investment, which beats all other gold investment plans in India.
  • Micro-investing: Start investing with as little as 0.5 grams of gold.
  • Flexible & investment frequency: Investments can be withdrawn any time without incurring any penalty fee. Investors can choose between one-time purchases, or set up systematic investment plans (SIPs).
  • Secure investments: Gullak Gold+ provides a 100% bank guarantee for all investments, ensuring your financial security.

Beat returns from all other gold investments!

Smart Gold Investment Plan: Purchase Digital Gold Using Gullak Gold+

Investing in Gullak Gold+ is simple. You need to follow the below-given steps -

  1. Download the Gullak Money app from your play store/app store.
  2. Signup using your mobile number
  3. Select Gullak Gold+ investment option inside the app
  4. Select your investment plan - Either extra 5% pa pr extra 4% pa
  5. Select the mode you’d want to invest in - SIP or lump-sum & the quantity you want to invest.
  6. Verify your PAN card to complete KYC & make your first investment.

As you embark on the journey of finding the best gold investment plan, Gullak Gold+ emerges as a standout choice. With its innovative approach, robust security measures and additional returns, it positions itself as a key player in the digital gold landscape. Take charge of your gold investments and explore the future of wealth creation with Gullak Gold+.

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Frequently Asked Questions
What sets Gullak Gold + apart from any other digital gold investment plan?
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Is buying digital gold the best gold investment plan?
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Which platform is best to purchase digital gold in India?
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