A comparison of digital gold with mutual funds

What is a mutual fund

A Mutual Fund scheme is a type of financial instrument wherein the investors’ money is pooled together and invested in various financial instruments such as stocks, bonds etc. Mutual funds are managed by professional fund managers who manage the assets in a manner that meets the investment objectives of the scheme.

However, in today’s digital era, with the increasing popularity of digital gold investment, more and more people are opting for this new age mode of investing in gold. 

So, what exactly is Digital Gold?

Digital gold is nothing but a 24 carat 99.9% pure gold investment option, where one can buy and sell units of gold online instantly. Like physical gold, digital gold too can be bought and sold anytime and anywhere. The price of digital gold is directly proportional to the current market rate of physical gold. Hence when you check online gold rate in Haldwani or Chennai the prices that you see are for both digital and physical gold. Thus, you can buy as little as 1 gram of digital gold anytime, anywhere at the prevailing market prices without having to worry about making charges or purity issues.

Mutual Funds benefits

There are a lot of things you can do with mutual funds. If you need advice, there is a great variety of books and magazines that explain how to do them. The Web has a great deal of information about how to choose the right fund for you; it’s not just about the fees you pay. And if you want to understand why mutual funds work, there is an entire science devoted to answering this question.

Easy to invest in: You can get started with mutual funds with as little as $500. This is because most fund managers allow you to buy fractional shares or units at fractional prices. For example, if a share costs $100 and you only have $50 to invest, the fund manager will allow you to buy 0.5 shares at $50 instead of a whole share at $100. Diversified: The best mutual funds offer exposure to lots of different companies and sectors rather than just one or two, lowering your risk and making them more suitable for new investors

Mutual funds have many benefits over other types of investments. They’re easy to invest in, diversified and highly liquid. 

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Benefits of investing in digital gold over mutual funds

  1. Liquidity: You can exit your investment at any time and receive your money within two working days. Mutual funds, on the other hand, are not so liquid and you may have to wait for a few days to redeem your money. To sell your gold all you need to do is look up gold rate today tadepalligudem or for wherever you conduct your business and then sell when you feel you have made the right amount of profit. Check out this page for more info.
  2. Access: You can invest in digital gold even with a small amount as there is no minimum ticket size. For mutual funds, you need an initial investment of at least Rs. 500 (Rs. 100 for SIP)
  3. Safety: The gold purchased through digital platforms is stored in secure vaults and is insured by the RBI-approved agencies. Mutual fund investments are directly linked to market performance, making them prone to risk
  4. Convenience: Digital gold investments offer greater convenience

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