Gold has always been a safe-haven asset for Indian investors. But in 2025, you don’t have to buy jewellery or physical coins — you can invest digitally through Gold ETFs, Sovereign Gold Bonds (SGBs), or Digital Gold.
Here’s a side-by-side comparison:
| Feature | Gold ETF | SGB | Digital Gold |
|---|---|---|---|
| Issuer | Mutual Fund / AMC | RBI (Govt of India) | Paytm, PhonePe, MMTC-PAMP |
| Returns | Market gold price | Gold price + 2.5% annual interest | Market gold price |
| Liquidity | High (stock exchange) | Locked 8 years (exit after 5) | High (redeem anytime) |
| Taxation | Capital gains tax (after 3 yrs LTCG) | No capital gains tax on redemption | Capital gains tax applies |
| Safety | SEBI regulated | Sovereign guarantee | Risk depends on platform |
Gold ETF
- Best for: Traders & short-term investors.
- Advantages: High liquidity, can be bought via Demat account.
- Disadvantages: Expense ratio (0.3–0.5%), no extra interest.
Sovereign Gold Bonds (SGB)
- Best for: Long-term investors.
- Advantages: Extra 2.5% annual interest, sovereign guarantee, no capital gains tax on maturity.
- Disadvantages: Locked for 5–8 years, limited liquidity in secondary market.
Digital Gold
- Best for: Small-ticket & retail buyers.
- Advantages: Easy to buy via apps, can start from ₹100.
- Disadvantages: Not regulated by SEBI/RBI, platform risk, storage fees after 5 years.
Which Should You Choose?
- Traders / Short-term investors → Gold ETFs.
- Long-term wealth creators → Sovereign Gold Bonds (SGBs).
- Small savers → Digital Gold for convenience.
If you want returns + safety, SGBs are the best choice in 2025.
Start Investing in Gold Smartly
Buy Gold ETFs via Zerodha, subscribe to SGBs on RBI Retail Direct, or use trusted apps for Digital Gold. Compare risks and track returns with eBharat Tools.
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