A Study on Gold ETFs as a Preferred Investment Option for Individual Investors

This research explores the extent of awareness and actual investment behaviour related to Gold Exchange-Traded Funds (Gold ETFs) among individual investors. The study identifies the major factors affecting investor awareness and participation and discusses their implications for financial advisors, policymakers, and asset management companies. Although extensive research exists on investor preferences for mutual funds, equities, and physical gold, there is limited research specifically addressing Gold ETFs from the perspective of retail investors. Most existing studies emphasise institutional investors or market-wide analysis, resulting in a significant gap in understanding individual investors’ perceptions and adoption of Gold ETFs. Given that the expansion of ETF markets largely relies on retail investor involvement, this study offers timely insights into awareness levels and investment behaviour among small investors. By evaluating both awareness and actual investment in Gold ETFs, the study adds meaningful empirical evidence to the limited body of literature in this area. The results provide practical guidance for financial educators, advisors, and product developers. As financial markets continue to evolve and introduce diverse investment options, gaining insight into investor responses to relatively new instruments such as Gold ETFs is increasingly essential.