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Below the Outlook on Gold by Vishal Jain, CEO, Zerodha Fund House

Investing in gold is nothing new. Gold remains a trusted hedge in inflationary times, known for holding its value and purchasing power. Traditionally held in the form of jewellery, bars, and coins, investors are now increasingly inclined to invest in gold via the mutual fund route.

Having been part of the journey of ETFs in India since the beginning, this shift doesn’t surprise me. Gold ETFs combine the advantages of owning gold—with high purity, securely stored, and fully insured—while offering the flexibility and cost-efficiency of ETFs. It essentially gives investors a simple way to own gold without the hassle of physical storage. Furthermore, the ETF format offers an  advantage with respect to taxation, if compared to Physical Gold.

Even according to the World Gold Council, more than 3,200+ tonnes of physical gold is held in the ETF format globally —an indicator of the trust placed in this format of investing in Gold.

As a simpler and easier to manage instrument, ETFs have the potential to change how India invests in Gold and other asset classes. We are just getting started.

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