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Is investing in Gullak Gold + a wise decision?
If you’ve been keeping an eye on the investment landscape over the past few years, chances are you’ve heard of the Gold investment app, Gullak. Gullak has gained popularity for its Gold+ feature, which promises to increase your gold quantity annually & potentially offering up to 16% returns pa on gold.
But the big questions remain: Can it actually deliver 16% pa? Is it a legitimate option? Is it safe to invest in Gullak Gold+? In this deep dive, we’ll explore these questions and determine if Gullak Gold+ is truly a worthwhile investment choice.
What is Gullak Gold+?
Gullak Gold+ is a feature from the Gullak app that provides investors with extra 5% gold every year. Eg- If you invest 100 gms in Gullak, in 1 year it’ll become 105 gms, & in 8 years it’ll become 148 gms, which is a 50% increase of gold quantity. On top of this you also get the benefit of gold price increase. Based on historical trends, gold prices increase by 11%pa. With the extra 5% gold on Gullak Gold+, you can get ~16% pa.
The extra 5% gold every year is generated by leasing your gold to India’s biggest jewellers. These jewellers use the gold as their working capital & provide the extra gold every year to Gullak’s users as interest.
Here are some other features provided by the Gullak app:
1. No lock-in period: You can withdraw anytime as cash or gold coins or redeem jewellery at Caratlane by Tanishq.
2. You can set up daily/weekly/monthly SIPs
3. Investments start from as low as ₹150/day
How does Gullak Gold+ compare to other gold assets?
Here’s how Gullak Gold+ compare to other popular gold investment assets:
Table- Gullak Gold+ vs Sovereign Gold Bonds vs Gold ETFs vs Digital Gold
| Factors | Gullak Gold+ (Gold leasing) | Sovereign Gold Bonds(SGBs) | Gold ETFs | Digital Gold |
| Description | Gold gets leased to India’s biggest jewellers who provide 5% extra gold every year as interest to users | Bonds that provide investors with extra 2.5% interest | Gold Exchange Traded Funds where you invest in commodity-based Mutual Fund that allocate in gold | Digital form of gold where your physical quantity is stored in a locker. You can buy, sell etc without incurring extra charges that physical gold comes with. |
| Returns | Gold price appreciation + Extra 5%pa | Gold price appreciation + Extra 2.5% | Gold price appreciation | Gold price appreciation |
| Form of extra returns | Gold grams | INR | – | – |
| Interest type (on extra returns) | Compounded annually | Simple Interest | – | – |
| Lock-in Period | None | 8 years maturity period.
Can be sold before that at 5-6% discount in secondary markets |
None | None |
| Tax | Gold Price appreciation- 12.5% LTCG
Extra interest- Taxed as per ‘Income from other sources’
|
Gold Price appreciation- Tax Free if kept till maturity
Extra interest- Taxed as per ‘Income from other sources’ |
Gold Price appreciation- 12.5% LTCG | Gold Price appreciation- 12.5% LTCG |
In the next section, let’s take a look at what ₹100,000 invested in both SGB & Gullak Gold+ would perform in 8 years:
| Asset | Invested amount | After 8 years |
| Gullak Gold+ | ₹1,00,000 | ₹3,20,651 |
| Sovereign Gold Bonds | ₹1,00,000 | ₹2,50,454 |
Note: Despite SGB’s tax exemption on capital gains after 8 years, returns of Gullak Gold+ are higher because with the Gullak app your extra gold compounds every year compared to the simple interest in case of Sovereign Gold Bonds.
Is it safe to invest in Gullak Gold+ or is Gullak risky?
– Gullak takes 100% collateral on your investments
– The Gold gets bought from Augmont, one of India’s biggest gold refineries in India & gets leased to RSBL, India’s Biggest Bullion player with over 25,000 Cr of annual turnover.
– Gullak’s Gold partner, Augmont, provides gold to 5000+ jewellers in India, including the likes of Kalyan & Caratlane. Augmont is NABL and BIS accredited and a member of India Good Delivery standard on NSE, BSE and MCX.
– Your money is invested in 24K 999 pure Hallmark gold.
– Gullak is trusted by 10 Lakh+ Indians
– Gullak is partnered with ICICI Lombard for insurance.
– Gullak is partnered with Cartalane & Kalyan for jewellery redemption & with ClearTax for tax filing.
Concluding thoughts on Gullak
With its ~16%pa, Gullak provides returns comparable to major assets like mutual funds. Typically, investors allocate 10-15% of their investments in Gold. With the extra returns here, further allocation is also possible. With that in place, it is up to you as an investor to evaluate the asset further & check if it suits your Investment needs.
FAQs
What are the risks of investing in Gullak app?
The Gullak app is 100% safe. Gullak ensures the safety of your investments by taking 100% collateral on them.
Gullak is partnered with one of India’s biggest gold players, Augmont for gold investments. All the gold on Gullak gets bought from Augmont. Augmont provides gold to 5000+ jewellers in India, including the likes of Kalyan & Caratlane. Augmont is NABL and BIS accredited and a member of India Good Delivery standard on NSE, BSE and MCX.
Can we trust the Gullak app?
Gullak app is trusted by 1Mn+ investors. Gullak secures your investments by taking 100% collateral on them. Gullak is partnered with some of India’s biggest players like Augmont, RSBL, ICICI Lombard, Cleartax etc.
What are the disadvantages of Gullak Gold?
If you’re looking for gold investments, Gullak Gold+, provides the highest returns on gold. On top of that, you have the flexibility of withdrawing anytime you want to.
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Disclaimer: The content provided here is for informational purposes only and should not be construed as financial or investment advice. TaxGuru.in and its authors do not endorse or recommend any specific investment products, including Gullak Gold+. Investing in any financial product, including Gullak Gold+, carries risks, including the potential loss of principal. Past performance is not indicative of future results, and returns on investments such as Gullak Gold+ are subject to market conditions, regulatory changes, and other factors beyond our control. Always conduct your own research or consult with a qualified financial advisor before making any investment decisions. TaxGuru.in does not assume responsibility for the accuracy or reliability of the information provided in this article, and any action you take based on this content is strictly at your own risk.
