About Digital Gold Investment
Loanpao’s digital gold investment options include gold ETFs, sovereign gold bonds (SGBs), and digital gold platforms (e.g., Paytm, PhonePe). These provide exposure to gold prices without physical storage, offering convenience and low entry points (₹1,000), with historical appreciation of 8–12% p.a.
Why Choose Digital Gold?
- Appreciation: Tracks gold prices with 8–12% historical growth
- No Storage Hassle: Eliminates physical storage and theft risks
- Low Entry Point: Starts at ₹1,000 (fractional gold units)
- High Liquidity: Easily traded on exchanges (ETFs) or platforms
- SGB Benefits: 2.5% p.a. interest + tax-free capital gains (on maturity)
- Transparency: Regulated by SEBI (ETFs, SGBs) or trusted platforms
- Portfolio Diversification: Low correlation with equities
Are You Eligible?
| Criteria | Requirement |
|---|---|
| Applicant Type | Indian resident (individuals, HUFs, NRIs for ETFs/SGBs) |
| Age | 18+ |
| KYC Compliance | Mandatory for platform accounts or demat accounts |
| Investment | Minimum ₹1,000 (varies by platform or ETF) |
What Documents Do You Need?
- KYC: Aadhaar, PAN, or passport
- Address Proof: Utility bill or rental agreement
- Bank Details: Linked account for transactions
- Demat Account: For ETFs (optional for platforms)
- Photograph: Passport-size (for some platforms)
Indicative Returns
| Investment (₹) | Tenure | Appreciation Rate | Future Value (₹) | SGB Interest (₹) |
|---|---|---|---|---|
| 50,000 | 8 years | 8% p.a. | ~92,600 | 10,000 (2.5% p.a.) |
| 50,000 | 8 years | 12% p.a. | ~1,24,800 | 10,000 (2.5% p.a.) |
| 1,00,000 | 10 years | 10% p.a. | ~2,59,400 | 25,000 (2.5% p.a.) |
Extra Charges:
- Platform Fees: 0.5–2% per transaction (digital gold platforms)
- Expense Ratio: 0.5–1% p.a. for ETFs
- Demat Charges: ₹300–₹1,000/year (for ETFs)
- GST: 3% on digital gold purchases (platforms)
Note: Returns are illustrative, based on historical gold price trends (8–12% p.a.). SGBs offer 2.5% p.a. interest. Actual returns depend on global prices and fees.
Calculate Your Digital Gold Returns
Enter details to see estimated returns.
How to Invest in Digital Gold
- Visit loanpao.in or platforms like Paytm, PhonePe, or Zerodha.
- Choose investment type: ETFs, SGBs, or digital gold.
- Complete KYC and link bank account or demat account.
- Invest starting at ₹1,000 (fractional grams for platforms).
- For SGBs, apply during RBI issuance windows via banks.
- Track investments via platform dashboards or stock exchanges.
- Redeem or sell via platforms, demat accounts, or banks.
Common Questions About Digital Gold
What is digital gold investment?
Investing in gold through paper-based instruments (ETFs, SGBs, platforms) without physical ownership.
Are digital gold returns guaranteed?
No, returns track gold prices and are subject to market volatility. SGBs offer fixed 2.5% p.a. interest.
What is the minimum investment?
₹1,000 for platforms/ETFs; ₹4,000+ for SGBs (1 gram equivalent).
Can NRIs invest in digital gold?
Yes, NRIs can invest in ETFs and digital gold platforms via NRE/NRO accounts; SGBs are restricted to residents.
What are the tax implications?
LTCG tax at 12.5% after 3 years (ETFs, platforms); SGB capital gains tax-free on maturity. GST (3%) applies on platforms.
What are the risks?
Gold price volatility, platform fees, expense ratios (ETFs), and counterparty risks (platform insolvency).
How does SGB differ from ETFs?
SGBs offer 2.5% p.a. interest and tax-free gains (8-year tenure); ETFs track gold prices with lower liquidity costs but no interest.