4. Buying Paper Gold In India

Gold ETFs (Exchange Traded Funds)

Instead of holding gold in physical form, you can buy gold in India in a paper form! Surprised? You can buy gold ETFs with the same ease as you stocks. Gold ETFs are mutual funds which track a benchmark index and its performance is based on the chosen index. You can invest in Gold EFTs even for a small quantity of 1 gram which will cost you around 1000-5000. You can also trade them easily on the stock exchange.

"NRIs can invest in Gold ETFs in India. If they are buying through the exchange, then NRIs must have a PINS account. An NRI can invest in Gold ETF without PINS account directly with Fund House but in this case investor has to buy or sell in the multiples of 1000 units," explains Lakshmi Iyer, Head of Fixed Income & Product, Kotak Mutual Fund.

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