| Points | Physical Gold | Gold ETF | Sovereign Gold Bond |
|---|---|---|---|
| Returns | Lower than actual return on gold | Lower than actual return on gold | Higher than actual return on gold |
| Safety | Risk on handling physical gold | High | High |
| Purity of Gold | Purity of gold always remains a question | High as it is in Electronic Form | High as it is in Electronic Form |
| Wealth Tax | Wealth tax applicable at 1% on the total valuation of the assets every year | Not applicable | Not Applicable |
| Capital Gain | Long term capital gain tax applicable after 3 years | Long term capital gain tax applicable after 3 years | Long term capital gain tax applicable after 3 years ( No Capital gain tax if held till maturity) |
| Collateral against Loan | Yes | No | Yes |
| Tradability/Exit Route | Conditional | Tradable on Exchange | Tradable on Exchange Redemption- 5th year onwards with Gold |
| Storage Cost | High | Very low | Very low |
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.*****No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.*****Prevent Unauthorized Transactions in your demat account:Update your Mobile Number with your Depository Participant and Trading member. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day.........issued in the interest of investors.