SBI Gold Fund also provides facility of Systematic Investment Plan. So if you are looking to invest your money in parts, so SBI Gold fund do provide this facility. To invest in a Gold ETF, you need a demat account but to invest in SBI Gold Fund, you are not required to have to demant account.

It's a fund of fund type mutual fund where money is invested in funds and not directly in the underlying equity or commodity. There is exit load of 1 per cent if you exit before 1 year from the date of purchase. As it is a fund of fund, so returns are expected less than GOLD ETF. So, if you have a demat account and want to invest in Gold, ETF could be a better choice for you.

I think most of investors are aware about it, but to make it clear, you will not get any physical gold by investing in GOLD Exchanges traded funds or Gold Mutual Funds. It has got its own advantage and disadvantages, if you are someone who would like to have that feel of possessing tangible, physical gold, then you will be disappointed. But if you are someone who want to invest in Gold simply because of the investment purpose and don't bother about its physical presence, then Gold ETF and Gold funds are better because you don't have to bother about their storage and security.

SBI Gold Fund is not the best but a good alternative for Gold investors in India