A COMPARATIVE STUDY ON DETERMINANTS OF RETAIL INVESTOR PREFERENCES BETWEEN GOLD ETFS AND GOLD MUTUAL FUNDS

Gold continues to be a preferred investment option in India, evolving from physical ownership to financial instruments such as Gold ETFs and Gold Mutual Funds. This study examines retail investor awareness and preferences between these two options in Mumbai’s Eastern Suburbs. Using primary data collected from 100-150 respondents across Mulund, Bhandup, and Vikhroli, the research analyses factors influencing investment decisions, including risk, return, liquidity, and convenience. The findings reveal higher awareness of Gold Mutual Funds compared to Gold ETFs, though investment preference is nearly balanced. Liquidity and cost efficiency drive ETF preference, while convenience and systematic investment options favour Mutual Funds. Hypothesis testing confirms that awareness and key factors significantly influence investor decisions, while no strong overall preference exists between the two instruments. The study highlights the role of financial literacy in shaping investment choices and emphasizes the need for enhanced investor education.