Following Prime Minister Narendra Modi’s appeal to reduce physical gold purchases in order to strengthen India’s economy, discussions around digital and financial gold investments have gained momentum again. Experts say there is no need to completely stop investing in gold, but instead of buying jewellery, coins, or gold bars, investors should consider options such as Gold ETFs, Electronic Gold Receipts or EGRs, and multi-asset funds. These alternatives can reduce the country’s gold import burden while also offering investors better safety, transparency, and liquidity.
Gold ETFs can be bought and sold through demat accounts just like shares in the stock market. Unlike physical gold, they do not involve making charges, locker expenses, or purity concerns. Meanwhile, SEBI-introduced Electronic Gold Receipts are digital certificates backed by real gold stored in secure vaults, and they can later be converted into physical gold if needed.
Multi-asset funds, which invest across equity, debt, and gold, are also emerging as attractive investment options. According to a study by WhiteOak Capital, a portfolio with 55% debt, 25% equity, and 20% gold delivered an average annual return of 11.61% over the long term.
