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India has a strong affinity towards investment in gold, which is why it is the second-largest market for this precious metal in the world. While it can be a safe haven for investment, you can generate higher returns by investing in equities of the companies dealing in gold.

You can invest in gold stocks on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India. The value of these stocks depends on various factors such as:

  • Company financials

  • Gold prices 

  • Market sentiments

  • Domestic and global macroeconomic factors

What Are the Factors to Remember Before Investing in Gold Stocks?

When investing in gold shares in India, you need to take into account the following factors:

1. Investment Strategy

Depending on your investment goal and the company’s performance, you can opt for a gold stock that best suits your financial needs. Alternatively, you can also invest in gold mutual funds.

2. Volatility

The performance of gold stocks in India depends on various factors, including the company’s financials and prices of gold. When investing in stocks, you need to factor in market fluctuations when determining your returns. 

3. Taxation

Capital gains tax applies to investments in gold stocks in India. You will have to pay a short-term capital gains (STCG) tax of 15% along with applicable cess if you hold the stocks for less than 3 years.

A long-term capital gains (LTCG) tax at a rate of 10% applies when the investment period is longer than 3 years. Moreover, LTCG tax is exempt up to the limit of ₹1 Lakh.

How to Invest in Gold Stocks

To invest in gold shares in India, you need a demat and trading account. You can open a demat account with a trading platform or brokerage firm and invest in these stocks by linking your bank account.

Apart from being a great investment option, gold assets allow you to avail of quick funds with minimal paperwork in case of emergencies. On Bajaj Markets, you can compare different loan offers and apply online for the one that best suits you.

DISCLAIMER

The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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FAQs on Gold Stocks in India

Which type of gold investment is the best?

If you are thinking of investing in gold, you can diversify your portfolio by investing in different forms of gold. These include gold jewellery and coins, gold ETFs, gold mutual funds, and stocks. You can choose any option that best suits your parameters.

Is investing in gold stocks a good option?

Certain gold stocks can provide you with much higher returns than CAGR on gold prices. However, investing in gold stocks comes with a risk of market fluctuations.

What is the safest option to invest in gold?

You can buy minted gold coins provided by authorised banks or gold ETFs if you are looking for the safest option.

Do I need a demat account to invest in a gold stock?

Yes, you need a demat and trading account if you wish to invest in gold stocks in India.

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