Earn 3 times more profits from FD like this at home! Learn this simple way

new Delhi. Coronavirus epidemic is a nationwide lockdown. Economic speed methods are at a standstill. The central government is constantly trying to ensure that there is no shortage of cash in the hands of common people. After the reduction in policy rates by the RBI, the interest rates on almost all types of savings have also come down. This includes small savings schemes ranging from bank fixed deposits to government guarantees. At the same time, on the other hand, there is a continuous volatility in the equity market.

Looking at these things, today we are going to tell you a way through which you can earn more profits. In fact, a recently released data shows that there has been an increase of Rs 1,613 crores in Gold ETFs in the financial year 2019-20. The special thing is that amid the initial news of Corona virus, there has been a record investment in Gold ETF in January and February 2020. Gold is generally considered the safest investment option under such circumstances.

Also Read: 71% return in a year, should you invest in this pharma fund?

How to get high returns on Gold ETFs?
Talking about the returns on gold ETFs in the last few years, in some cases it is many times more than the fixed deposits (FD) of banks. As an example, at this time some small finance banks are giving a maximum interest of 9% on FD. This rate is very low on FDs of private and public sector banks. Most banks have reduced interest after the RBI decision. At the same time, if you look at the top gold ETF funds in the last one year, it has received returns of up to 27 percent. Looking at this, it can be said that gold ETFs can get higher returns than FDs.

According to a data from Value Research, in the last one year, top gold funds like Nippon Gold ETF, SBI Gold ETF, Kotak, Axis, ICICI Prudential, Birla Sunlife, IDBI are getting more than 27 per cent returns on average.

What is Gold ETF

Gold exchange traded funds are a type of mutual fund which invests in gold. The units of this mutual fund scheme are listed on the stock exchange. Gold ETFs are a modern, inexpensive and safe means of investing in gold. Units purchased by you are deposited in your demat account. Whenever you want to redeem them, you can take cash equal to the price of your gold ETF. In some gold ETF schemes, you also get an option to take gold of equal value at the time of maturity.

What are the benefits of Gold ETF
However, experts say that one should not invest in gold just to get returns. It should be a risk diversifier (risk-diversifying scheme) in everyone’s portfolio. Gold ETFs are very price efficient. Gold ETF brings the wholesale market price efficiency at retail level. In this, you do not have the problem of keeping gold in a physical way. The biggest advantage is that you can sell it at market price whenever you want.

How to spend money?
You have to open your trading and demat account with any share broker. You can also buy them at regular intervals through Lump-Sum or Systematic Investment Plan (SIP). You can also buy one gram of gold. In this way, instead of giving more time to the market, invest in a systemic way.

Open your trading and demat account with a share broker. Login to the broker’s online portal with your login ID and password. Select the gold ETF you want to buy. Place your purchase order for as many UTF units as you want to buy. Money will be deducted from your account. Units will be credited to your demat account on the day of trading or the next day.

The post Earn 3 times more profits from FD like this at home! Learn this simple way appeared first on informalnewz.