Gold ETFs are open Ended Exchange traded Funds, which further invest in physical Gold and Endeavours to track the domestic spot price of Gold as closely as possible. Thus it provides an option to invest in gold without taking physical delivery of Gold. Each unit of Gold ETF equals one gram of gold. You can buy even in fractions of units enabling to invest very small amount in the Gold ETFs compared to Gold Physically.
Besides buying in lump sum you can also invest in Gold ETFs through Systematic Investments Plans; a very small amount every month. SIP in Gold ETF is a very good tool if you plan to buy gold for your future needs e.g. daughter’s marriage say 15 – 20 years later.