You can also consider the fund of funds route.
Although there are no brokerages, you will have to bear the exit load.
Gold ETFs and fund of funds use spot gold prices and investments in these can be made through an SIP.
In e-gold, you can buy in units. One e-gold unit is equal to one gramme of gold, which can be bought and sold via the spot exchange just like shares, making it a very liquid investment. While investment in e-gold needs a demat account, one can invest in a gold ETF without a demat account.
While a fund house will give physical delivery of gold only if the quantity is around one kg, upon redemption of the ETF units, in the Reliance plan, one can redeem one's accumulated gold grams into 24-carat gold coins/bars. While gold ETFs and fund of funds are considered more as paper gold investments, e-gold is more liquid in nature.
Rajiv Goel, a financial planner, said e-gold is the most cost-effective form and is able to trace gold prices more closely than ETFs or gold funds. "However, e-gold loses out to gold ETFs when it comes to taxation, as the units need to be held for more than three years to get long-term capital gains tax benefit, unlike gold ETFs that need to be held only for one year. Also, one might have to pay s wealth tax on e-gold, unlike ETFs or gold fund."