Abstract

Gold is a precious commodity and most popular as an investment in India. There are religious and sentimental values in buying gold. This study is conducted to evaluate the perception of consumers for investing in gold in India. The paper also aims to study the different modes of investment in gold. Primary research was conducted to know the perceptions of respondents. Survey was done to know about the awareness of options for investment in physical gold and the most preferred gold investment and gold fund. The survey shows that many people are aware of gold ETFs. 72 percent respondents perceive gold as a risk free investment, 43 percent invest in gold funds while 36 percent respondents invest in physical gold. SBI Gold fund is the most preferred fund followed by HDFC Gold Fund. The analysis shows that people invest primarily for returns. Other reasons for investment in gold are safety and liquidity. Investment can be made in physical gold, Gold ETFs and E-Gold, Gold Monetisation Scheme, Gold Sovereign Bonds and Gold Mutual Funds.

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