Gold ETF Investment: In August 2025, a net investment of ₹1,950 crore was made in Gold ETF. Got 52% return in one year. In this article, we will know what Gold ETF is, how to invest and its 5 big benefits.
Gold ETF Investment: In today’s time, gold is not just considered as jewelry, but a safe investment option. The big reason for this is the great return. So far in the year 2025, gold has given 43% return and about 52% return in the last one year. This is the reason why in August 2025, a record net investment of ₹1,950 crore was made in India’s Gold Exchange-Traded Funds (ETF). This investment was about 68% more than in July.
What is Gold ETF and how does it work?
Gold ETF i.e. Exchange Traded Fund is based on gold prices. One unit = 1-gram pure (99.5%) gold. It is completely transparent, and you can buy and sell it on BSE and NSE just like shares. Here you do not get physical gold, but on selling it you get money equal to the price of gold at that time.
5 big benefits of investing in Gold ETF.
- Investment possible in small amounts – You can buy even from 1 gram. Gradually investing becomes easy through SIP.
- Pure gold is available – The price of Gold ETF is based on London Bullion Market, and it is guaranteed to have 99.5% purity.
- Relief from jewelry making charges – Here only 1% brokerage or management charge has to be paid, whereas in physical gold 8–30% making charge is charged.
- No worry about security – It remains safe in your demat account. No fear of theft or locker expenses.
- Trading and loan facility – Gold ETF can be bought and sold instantly and can be used as security to take a loan if needed.
How to invest in Gold ETF? (Gold ETF Investment)
For Gold ETF Investment, you need a demat account and a trading account. Through your broker, you can buy Gold ETF units available on NSE/BSE. The payment will be deducted directly from your bank account, and the units are deposited in your demat account within two days. Similarly, the selling process is also easy.
How much should one invest in gold?
According to experts, even though gold is a safe investment, one should not invest more than 10–15% of the portfolio in it. It gives stability to your investment portfolio in times of crisis, but in the long term, too much Gold ETF Investment can reduce your returns.
Disclaimer: The information given in this article is for educational purposes only. If you want to invest in the stock market, you should learn about the stock market yourself or consult a financial advisor and certified expert. The stock market is risky. Before making any investment, you must consult an expert.
Conclusion
In this article, you will find that Gold ETF is a great option for those who want to invest in gold but are worried about safety, purity and liquidity. The record investment of August 2025 shows that investor confidence is increasing. If you are also planning Gold ETF Investment, then it would be wise to consider Gold ETF instead of physical gold, it has been explained in detail. If you liked the information given in this article, please like, share and comment on this article.