Purushottam has a daughter, Laxmi who is 18 years old. He intends to give 500 grams of gold at the time of her wedding. The wedding is likely to take place after 7 years. The current price of gold is ₹3,000 per gram. He

Answer 5 - Advice on Gold Investment for Purushottam In the present circumstances, following options are available to Purchase: Purchase of Physical Gold: Requires security and storage. Purchase of Gold Mutual Fund: Will have an expense ratio of around 2% charged as Management Fees. Purchase of Exchange Traded Gold Fund (ETF): Will also have management fees of about 1% and further dealings are also to be paid at the time of sale or purchase. Purchase in the Commodity Market: One can do so just by paying the margin and involved surplus money in debt. However, it has a lot of hassles. Purchase of Sovereign Gold Bond (SGB): This is a scheme involved by the Government of India. Wherein you get Gold Bond at ₹50 for per gram plus the interest of 2.5% on your investment. On redemption, you get the money at the prevailing gold price. For Purushottam, investment in the Sovereign Gold Bond shall be most ideal as it offers interest, security, and redemption at market price, protecting against future price rises without the hassles of physical gold or high fees of other financial products.