5 Ways to Invest in Gold on Akshaya Tritiya to get best returns?

Akshaya Tritiya, a highly auspicious day in Hindu and Jain traditions, is considered an ideal time to purchase gold as a symbol of prosperity and good fortune. Falling on April 30th this year, the festival marks an opportune moment for both seasoned investors and first-time buyers to add gold to their portfolios. If you’re considering gold investments for Akshaya Tritiya, here’s a comprehensive guide to your options.

Why Invest in Gold?

Gold has been a trusted store of value across civilizations for thousands of years. Before diving into investment options, it’s worth understanding why gold remains a popular investment:

• Hedge against inflation: Gold often retains purchasing power during periods of rising prices
• Portfolio diversification: Gold typically moves independently of stocks and bonds
• Safe-haven asset: Investors flock to gold during economic and geopolitical uncertainty
• Cultural significance: Gold holds special importance in Indian traditions and ceremonies

Gold Investment Options

Physical Gold

Gold Coins and Bars

• Available from banks, jewelers, and government-authorized dealers
• Look for BIS hallmark certification (Bureau of Indian Standards) to ensure purity
• Available in various weights ranging from 0.5 grams to 1 kg
• Consider buying from reputable dealers to avoid counterfeits
• Where to buy: Banks like SBI, HDFC Bank, ICICI Bank, or reputable jewelers like Tanishq, Malabar Gold & Diamonds

Gold Jewelry

• Traditional choice combining investment value with utility
• Remember that making charges (10-25%) are non-recoverable costs
• Ensure jewelry has proper hallmarking for purity verification
• Higher GST rates apply compared to coins and bars
• Popular retailers: Tanishq (www.tanishq.co.in), Kalyan Jewellers (www.kalyanjewellers.net), CaratLane (www.caratlane.com)

Paper Gold

Gold ETFs (Exchange Traded Funds)

• Trade like stocks on stock exchanges
• Require a demat account and trading account
• Offer high liquidity with minimal storage concerns
• Low expense ratios (typically 0.5-1%)
• Popular options: Nippon India Gold ETF, SBI Gold ETF, HDFC Gold ETF
• Where to invest: Through brokers like Zerodha (zerodha.com), Groww (groww.in), or Upstox (upstox.com)

Sovereign Gold Bonds (SGBs)

• Government-backed securities denominated in gold grams
• Offer additional 2.5% annual interest along with potential capital appreciation
• Tax benefits on capital gains if held till maturity (8 years)
• Limited liquidity as secondary market trading can be thin
• How to invest: Through banks, post offices, stock brokers, or directly from RBI (rbi.org.in)

Gold Mutual Funds

• Invest in gold mining companies or gold ETFs
• Professionally managed with diversification benefits
• Allow systematic investment plans (SIPs) for disciplined investing
• Higher expense ratios than direct ETF investments
• Popular funds: SBI Gold Fund, Kotak Gold Fund, Nippon India Gold Savings Fund
• Where to invest: Through AMC websites or aggregators like Kuvera (kuvera.in) or MFUtility (mfuindia.com)

Digital Gold

• Purchase gold online through platforms like MMTC-PAMP, PhonePe, Paytm
• Start with as little as ₹1 investment
• Option for home delivery of physical gold or selling online
• Ensure the platform offers 24K 999 purity gold with proper certification
• Popular platforms: MMTC-PAMP (mmtcpamp.com), PayTM Gold (paytm.com), PhonePe (phonepe.com)

Gold Savings Schemes

Jeweler Gold Savings Schemes

• Monthly installment plans offered by jewelers
• Typically run for 11 months with a bonus month added by the jeweler
• Lock in current gold prices or receive gold equivalent to your investment at maturity
• Ideal for those planning major gold purchases for weddings or special occasions
• Popular schemes: Tanishq Golden Harvest Scheme, Kalyan Jewellers Gold Mine Scheme, Malabar Gold & Diamonds Gold Savings Scheme
• How they work: Pay fixed monthly installments (often starting at ₹1,000) for 11 months, receive an additional installment value free (equivalent to a ~9-10% return)

Gold Accumulation Plans (GAPs)

• Systematic investment in digital gold
• Fixed amount purchases gold at prevailing rates
• Similar to mutual fund SIPs but for gold
• Examples: MMTC-PAMP Accumulation Plan, Augmont Gold SIP

Comparing Gold Investment Options

Investment TypeLiquidityStorage ConcernsReturns PotentialAdditional BenefitsBest ForPhysical GoldModerateHighPrice Appreciation OnlyTangible AssetLong-term holders, Traditional investorsGold ETFsVery HighNonePrice Appreciation OnlyEasy TradingActive investors, Digital-savvy usersSovereign Gold BondsLowNonePrice Appreciation + 2.5% InterestTax BenefitsLong-term investors, Tax-conscious buyersGold Mutual FundsHighNonePrice Appreciation (minus expenses)Professional ManagementRegular small investorsDigital GoldHighOptionalPrice Appreciation OnlyConvenienceFirst-time buyers, Digital-savvy usersGold Savings SchemesLowNone until redemptionFixed Bonus (8-10%)Forced SavingsWedding planners, Systematic savers

Expert Recommendations

For First-Time Investors (under ₹50,000):

• Digital gold is recommended for its low entry barrier and high liquidity
• Try: PayTM Gold or MMTC-PAMP for reliable platforms

For Long-Term Wealth Building (over 5 years):

• Sovereign Gold Bonds offer the best overall returns with interest and tax benefits
• Next tranche typically announced close to Akshaya Tritiya

For Regular Savers:

• Gold savings schemes from established jewelers offer guaranteed returns
• Consider: Tanishq Golden Harvest or Kalyan Jewellers Gold Mine Scheme

For Active Traders:

• Gold ETFs provide the most efficient trading vehicle
• Try: Nippon India Gold ETF (lowest expense ratio in category)

For Wedding Planning:

• Combination of gold savings schemes for jewelry purchases and SGB/ETFs for value preservation
• Look for special Akshaya Tritiya offers from major jewelers

Tips for Akshaya Tritiya Gold Shopping

1. Book in advance: Many jewelers offer pre-booking facilities with price protection
2. Compare prices: Gold rates can vary slightly between retailers
3. Check for special offers: Many sellers provide discounts on making charges during Akshaya Tritiya
4. Verify certification: Ensure all physical gold purchases come with proper certification
5. Consider buyback terms: Understand the terms for selling back to the same dealer
6. Look for Akshaya Tritiya special schemes: Many platforms offer limited-time promotions

Final Verdict

The “best” gold investment differs based on your goals:

• Most Tax-Efficient: Sovereign Gold Bonds (no taxes on capital gains if held till maturity)
• Most Convenient: Digital Gold (for smaller investments) or Gold ETFs (for larger amounts)
• Best Overall Returns: Sovereign Gold Bonds (gold price appreciation + 2.5% interest)
• Best for Forced Savings: Jeweler Gold Savings Schemes
• Most Liquid: Gold ETFs (can be sold instantly during market hours)

Whether you choose traditional physical gold or modern paper gold alternatives, Akshaya Tritiya presents an excellent opportunity to begin or expand your gold investments. By understanding the various options available, you can make an informed decision that aligns with your financial goals while honoring this auspicious tradition.