Best Gold Stocks in India

Our parents always advise us to invest in gold, and they are correct. Most importantly, gold can assist investors in recovering from stock market losses and serves as an effective hedge against inflation. Many financial experts recommend allocating a small portion of your portfolio to gold investments.

While many people prefer purchasing physical gold, most wish to spend only a small amount of money to acquire a significant amount of gold. An alternative is to invest in gold stocks. We will discuss which gold shares to buy in India to strengthen your portfolio.

What are Gold Stocks?

"Gold stock" is a term for publicly traded company shares with a strong focus on gold. Buying gold stocks instead of the metal itself has several advantages.

Investing in gold companies may yield better returns than investing in gold itself. Companies can keep their profits going by cutting costs and increasing production. But not all gold shares give good returns. So, investors should choose the best ones carefully.

Best Gold Stocks to Invest in India

Details of the Best Gold Shares to Buy in India

Here is the best gold stocks list on the Indian market based on their market cap:

Titan Company Ltd.

Titan Company Ltd., a jewel in the TATA Group's crown, has continued to dominate the Indian jewellery market through its renowned brands like Mia, Tanishq, Zoya, and Caratlane. Known for its wide range of products including watches under its own name, eyewear via "Fasttrack", and perfumes under "SKINN", Titan has solidified its presence not just in India but also in international markets. The company's relentless focus on quality, customer service, and innovative marketing strategies keep it at the forefront of the gold and luxury goods sector.

Muthoot Finance Ltd.

Muthoot Finance Ltd. remains India's premier gold financing company, safeguarding around 171 tonnes of gold. With its plethora of services ranging from gold loans to insurance and personal loans, Muthoot Finance has broadened its portfolio to include Muthoot Housing Finance and Muthoot Insurance Brokers among others. The trust and reliability it commands in the market have only grown, reflecting in its robust financial health and expanding customer base.

Rajesh Exports Ltd.

Rajesh Exports Ltd. has sustained its global leadership in gold processing, refining a significant portion of the world's gold. With an increase in global demand for gold, the company's strategic investments in refining capacity and supply chain efficiencies have bolstered its financial performance and market position. Its VALCAMBI brand continues to be the bullion of choice for major banks worldwide, underpinning its stellar growth trajectory.

Kalyan Jewellers

Kalyan Jewellers Ltd. remains a household name in India, backed by high-profile endorsements and a wide array of jewellery offerings. From traditional gold to exquisite diamond and other precious stones, Kalyan Jewellers caters to diverse customer preferences across the country. Its brands like Nimah, Tejasvi, Rang, and Anokhi have strengthened its market position, making it a preferred destination for jewellery shoppers.

Manappuram Finance Ltd.

Manappuram Finance Ltd., a leading NBFC specializing in gold loans, has seen a significant increase in its asset management and gold loan portfolio. The company's innovative lending practices and customer-centric approach have contributed to its growth in revenues and profits, making it a strong player in the financial sector. Its commitment to providing accessible financial services continues to drive its success.

Vaibhav Global

Vaibhav Global Limited (VGL) has carved a niche in the global retail market for jewellery, accessories, and lifestyle products, especially in the US and UK markets. Its omni-channel retail strategy, encompassing live shopping channels Shop LC (US) and Shop TJC (UK), along with robust online platforms, has propelled its growth. With a significant portion of its revenue generated from TV and web platforms, VGL's innovative approach to retail has set it apart in a competitive market.

Things to Keep in Mind Before Choosing Gold Stocks to Buy

Before you buy gold stocks, there are a few things you should keep in mind.

• Plan for Investing: You can invest in gold in more than one way: directly in gold stocks, through gold ETFs, or through gold mutual funds. Before you spend your money, compare the pros and cons of each investment option.
• Have Basic Knowledge: When you invest, you should always make a choice based on what you know and keep up with market news that could affect your investment.
• Talk to a Professional: When you're not sure about how to invest, it's always best to talk to an expert.
• Tax Advantages: Just like any other equity-oriented investment, taxation rules are similar for even gold stocks. Short-term capital gains (if sold within 12 months) are taxed at 15% along with applicable cess and long-term capital gains are taxed at 10%, along with applicable cess. If the long-term capital gain is less than Rs 1,00,000, it is exempt from taxes.
• Spend Little: If you aren't sure, you can also start by putting in a small amount of money.

Conclusion

Now that you know about the different kinds of ‘gold stocks to invest in’ you can buy, you can think about buying gold-related stocks in India. Even though it's usually safe to invest in gold stocks, you should do a lot of research before you start.

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.