ETF and Investing in Gold

ETFs or Exchange Traded Funds are a collection of bonds, stocks, securities, commodities, or a combination of these, which can be purchased or sold through a broker. ETF Funds have become a necessary commodity in the marketplace in today’s age because of their flexibility. ETF investing has bought a significant change in the landscape of investing, as investors have the option of buying components of stocks, bonds, securities, etc., without having to worry about buying the assets in whole. This has helped many investors in gaining higher returns and generating more profits on their investments.

Investing in gold has been a practice that has existed for a long time. ETFs have made it an easier option to invest in gold for investors in today’s day and age. Gold ETFs enable investors to invest in gold in digital form. This tapers its cost due to the elimination of making and storage charges. Gold mutual funds are static and are generally used to invest in gold bullion, and are based on the market gold rates.

Gold ETFs can be sold and purchased just like stocks and makes it convenient for both the seller and buyer in attaining their final goal- profits. Gold ETFs not only makes the process of investing in gold seamless but also make sure that you get higher benefits than investing in physical gold. The gold ETFs fetch you cash equivalent of physical gold and saves you from the trouble of physically handling the gold. This clears up one of the most common questions about how to invest online for gold

Benefits of Gold ETFs

1. Total transparency in the whole process makes it a trustworthy process.
2. Real-time gold prices are used for gold ETFs, which makes them more profitable than investing in physical gold due to its handling and modification costs.
3. Gold ETFs help investors in saving taxes, as income generated from them is considered long term capital gain.
4. Can be used as a collateral option for loans.
5. They are listed on the stock exchange and are as easily tradable as stocks.
6. There are not VAT, sales taxes, wealth taxes, or security transaction taxes for owning and selling gold ETFs.
7. Having no entry or exit loads make gold ETFs a low-risk investment, which aids in promising higher returns to the investors. 

ETFs, have hence, become a crucial form of investment for people looking for a hassle-free process of investing in mutual funds.

SIP Investment

SIP or Systemic Investment Plan is a route offered to the investors to assist them in investing in mutual funds. It is a process that is incorporated in mutual fund schemes for the convenience of the investors, wherein they can pay a certain fixed amount at regular intervals monthly or quarterly. It is similar to a recurring deposit, but for mutual funds. For investors looking to invest little sums of money periodically rather than lump-sum at once, SIPs are the perfect fit.

What is SIP Investment and What are its Benefits? 
SIP investments are basically the fixed amount the investor has to pay for the mutual funds they have invested in. On the basis of Compound Interest, this helps the investors in reaping a higher return compared to using no SIP. The best feature of a SIP is that the investor can choose to pay any amount of their liking for their scheme, and the duration of the plan too. Investors can invest 500 RS per month or 10,000 RS per month, whichever they like.

How much to invest in Mutual Funds
One can choose to invest any amount they’d like in multiple mutual fund schemes. You must set your financial goals, and determine if they are long term or short term. With disciplined and low-risk strategies incorporated in SIPs, you have the option to invest in multiple mutual fund schemes and keep track of their performance to determine which ones are worth keeping and which ones aren’t.

Points to keep in mind for engaging with SIP in Mutual Funds

• You can choose the amount you have to pay for your mutual fund schemes.
  
• You can choose the from weekly, monthly, or quarterly options to pay your deposits
  
• You can choose the duration of your SIP
  
• You can choose to withdraw from your SIP and still continue your engagement with the mutual fund scheme the SIP was used in, with no additional charges.
  
• One SIP can be incorporated in multiple mutual fund schemes.

SIPs have become one of the most prized commodity in the marketplace for investors. They help the investors in not only gaining higher returns but also makes investing in mutual funds reachable to a whole new set of people. The key here is regularly investing for longer period of time to reap higher benefits from your investments.