Akshaya Tritiya 2021: Here’s How To Add Glitter To Investment Portfolio

There are several options to invest in gold depending on the purpose. Here are various ways to invest in gold on Akshaya Tritiya

New Delhi: As the auspicious occasion of Akshay Tritiya falls on Friday (May 14), we take you through the significance of the day and how to invest in gold during the festivity.

What is Akshaya Tritiya? 

Akshaya Tritiya is an annual spring festival celebrated across India as the day is considered auspicious and marks the harbinger of good luck in the Hindu calendar.

The word Akshaya is defined as “never diminishing” as the day is associated with wealth, prosperity, and happiness and it falls on the third day of brighter half of the moon in the month of Vaisakha, according to the lunar calendar.

The day is also known as Akha Teej, and followers believe that the occasion is best suited for organising rituals, rites, and prayers. This day is marked by a tradition of buying valuables such as gold and silver. It is believed that buying a gold bar or gold jewellery brings good luck and prosperity

What are the options to invest in Gold?

According to financial planners, one should allocate between 5-15 per cent to gold in the investment portfolio because it acts as a hedge against currency volatility and inflation.
More people are expected to opt for digital gold options like gold funds, e-gold and gold ETF that may impact the retail physical gold sale.

While some retail jewelry brands are also expecting to rake in mooAkshaya Tritiya 2021 compared to the last year. According to India Bullion and Jewellers Association, gold prices stand at Rs47,764 per 10 gm, excluding taxes.

Physical gold: Several jewellers have started offering video conference service where you can book an appointment and select to purchase items in real time. You will get the link for payment after which the gold will be delivered at your address.

Gold bonds: You may also opt to buy the yellow metal through sovereign gold bonds (SGBs). You may buy gold in denominations of 1 gm of gold and multiples thereof. These bonds also offer an annual interest rate of 2.5 per cent on the initial investment amount. The new tranche of SGB will only open for subscription on 17 May and close on 21 May. The bonds mature after eight years, and early redemption is allowed after five years. The only problem is that these are not on tap—the government issues SGBs in tranches. 

Digital Gold: To attract customers for physical gold, several investment apps and wallets are offering digital gold. You can purchase gold for as low as Rs1 at any time of the day, but remember it will attract 3 per cent goods and services tax (GST) just as you do while buying physical gold. You can ask for delivery of physical gold after accumulating at least 1 gm of the precious metal. Alternatively, you may also choose to sell it on the wallet or investment apps.

Exchange-Traded Funds: Gold ETFs are basically paper gold and the money you invest will be pegged to 24-carat gold. Here The underlying asset is gold and some cash. To invest in these ETFs, you need to open a demat account. When you redeem, you will get the monetary equivalent of the price of gold on the day of redemption. ETFs have two costs: expense ratio and the cost of opening a demat account.

You can also invest in gold through gold savings funds which are similar to gold ETFs. But they don't trade on stock exchanges. Remember to choose the above instruments based on whether you want to invest or accumulate gold for the future and the amount you are comfortable in spending.