Best Monthly Gold Schemes in India
By Gullak Team
Jan 16, 2023
6 min read
In India, gold isn't just a metal; it's a blend of cultural heritage and economic assurance deeply rooted in tradition. Revered for its timeless value, gold has evolved from a symbol of prosperity to a prudent investment choice. Embracing this legacy, the modern financial landscape introduces monthly gold schemes, offering a systematic approach to gold investment.
A monthly gold scheme enables individuals to invest in gold in affordable monthly installments, democratising access to this precious asset. This blog aims to demystify these schemes, guiding you through their nuances and empowering you with the knowledge to make informed investment decisions in the realm of gold. It will also help you understand Gullak Gold+, an innovative monthly gold scheme option that can offer 5% additional returns over the market appreciation
What is the Monthly Gold Scheme?
The monthly gold scheme in India represents a strategic approach for individuals to invest in gold through regular, fixed monthly installments. Per reports, monthly gold schemes have a whopping 48.06 lakh investors with total assets under management (AUM) in this category stands at ₹23,780 crores approximately - making it second to only real estate in India.
Monthly gold schemes offer various investment avenues: purchasing physical gold in small quantities, investing in gold savings accounts, opting for gold Exchange Traded Funds (ETFs) & Gullak Gold+.
Some important options relating to gold schemes include:
Sovereign Gold Bond: Gold Sovereign Bond in India refers to a scheme that allows individuals to invest in gold in a paper form rather than purchasing physical gold. 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.
Gold ETF: A Gold Exchange-Traded Fund (ETF) is a type of exchange-traded fund that is designed to track the price of gold. ETFs are investment funds that are traded on stock exchanges, much like individual stocks. Gold ETFs offer investors exposure to the price movements of gold without the need to physically own and store the precious metal. The returns are equivalent to gold's annual appreciation.
Gold Mutual Funds: A gold mutual fund is a type of mutual fund that primarily invests in various forms of gold, such as physical gold, gold-related securities, and derivatives linked to the price of gold. These funds are managed by professional fund managers and provide investors with a way to gain exposure to the gold market without directly owning physical gold. Like Gold ETFs, returns from Gold Mutual Funds are also equivalent to gold's annual appreciation.
Monthly gold schemes are particularly appealing as they allow gradual investment, making gold acquisition more accessible without needing lump-sum payments.
Monthly Gold Scheme: Gullak Gold+
Gullak presents a unique approach to investing in gold through Gold+, a monthly gold scheme that aims to revolutionise how individuals grow their wealth.
This monthly gold scheme allows investors to start with as low as 0.5g. Its unique selling points include assured Extra 5% returns in gold grams over the market price appreciation of gold & 100% security & flexibility on investments.
Benefits of Investing in Gullak Gold+ Monthly Gold Scheme
High Returns: Gold+ provides an additional return of 5% in gold grams per annum on top of the market-projected 10-11%, resulting in nearly 16% returns annually. These returns beat returns from all other gold assets in India.
No Lock-in: Gullak Gold+ does not have a lock-in period, making your investment accessible to you, and ensuring liquidity during emergencies or other unforeseen circumstances.
Purity: While offline purchases of jewellery require a quality check, Gullak ensures 24K 99.9% pure Hallmark gold, ensuring you get the highest value from your digital gold investments.
Gullak presents a unique approach to investing in gold through Gold+, a monthly gold scheme that aims to revolutionise how individuals grow their wealth.
- High Returns: Gold+ provides an additional return of 5% in gold grams per annum on top of the market-projected 10-11%, resulting in nearly 16% returns annually. These returns beat returns from all other gold assets in India.
- No Lock-in: Gullak Gold+ does not have a lock-in period, making your investment accessible to you, and ensuring liquidity during emergencies or other unforeseen circumstances.
- Purity: While offline purchases of jewellery require a quality check, Gullak ensures 24K 99.9% pure Hallmark gold, ensuring you get the highest value from your digital gold investments.
- Safety: 100% Bank guarantee on investments using Gullak Gold+, means the investments are always secure.
Comparing Gullak Gold+ with Other Monthly Gold Schemes
| Investment Option | Ease of Investment | Resale Value | Purity Concerns | Overhead Costs | Historical Returns |
|---|---|---|---|---|---|
| Gullak Gold+ | Structured and disciplined through monthly instalments; suitable for beginners. | Highly liquid. No lock-in period. | Assured purity as part of the scheme's features. | There are no hidden administrative or management fees. | 16% (highest amongst the available options) |
| Traditional Gold Buying | Requires market knowledge; physical buying process. | High and immediate; dependent on current gold rates. | Needs verification; risk of impurity. | Storage and safety costs. | 9% to 11% |
| Gold ETFs | High; similar to trading stocks; requires a demat account. | High liquidity; resale at market prices. | Purity not a concern as it tracks gold prices. | Brokerage fees; fund management charges. | 9% to 11% |
| Digital Gold | It is very easy and accessible online in small quantities. | Good, with options to sell back to the issuer or a third party. | Purity assured by the seller; certification provided. | May include making charges and storage fees. | 10% to 12% |
After exploring various monthly gold scheme investment options, let's compare the potential returns from Gold Mutual Funds, Sovereign Gold Bonds (SGB), and Gullak Gold+ over a 5 year horizon.
Investing in Monthly Gold Scheme: In a Nutshell
In conclusion, monthly gold schemes and gold instalment plans offer diverse investment opportunities catering to varying risk appetites and financial objectives. It's crucial to align these options with your financial goals and conduct thorough research before investing.
Among various options, Gullak Gold+ emerges as a standout choice in monthly gold schemes, offering 5% additional returns on gold investments in gold grams along with other unique benefits that align well with diverse investment objectives. Its advantageous features make it a worthy consideration for investors.
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Frequently Asked Questions
How does the fluctuating market price of gold impact the returns from monthly gold investment schemes?
In the event of an economic downturn, how secure is my investment in monthly gold schemes compared to traditional gold investments?
How does the lock-in period in monthly gold schemes affect liquidity, and what are the options if I need to liquidate my investment prematurely?
