New Delhi, May 28 -- Investors often confuse gold ETFs with gold mutual funds and may end up choosing the wrong investment option. While both fall under the mutual fund category regulated by AMFI, they differ significantly in terms of investment structure, taxation, costs, liquidity, and investment approach.

So, let's explore the key differences between the gold ETF and gold mutual funds.

Gold ETFs are exchange-traded securities that track the price of gold in the domestic market. Gold ETFs directly hold physical gold of high purity or invest in gold-linked instruments such as Exchange Traded Commodity Derivatives (ETCDs). These ETFs can be easily bought or sold like a share on the stock exchange.

Gold mutual funds, on the other hand, ...