There are a number of options out there to invest in gold. You can buy gold in the form of gold coins or gold jewellery, gold ETFs or Sovereign Gold Bonds or you can also explore new options like PayTM Gold. Though for a common man to invest in gold we would recommend you to buy physical gold considering immediate liquidity and investment flexibility.
When investing in gold the first thing one need to make sure is to buy gold coins or bars and not gold jewellery. By buying gold jewellery as an investment you unnecessarily lose money in jewellery making charges which are not considered when selling it. Even if you are investing in gold for your daughter wedding for future buy gold coins now and make jewellery out of it later only when she is about to get married as this will also help you make latest gold jewellery of your daughter choice by that time.
Prefer buying 24 karat gold from bullion traders with proper receipts and not from banks or gold jewellers as bullion traders offer the best gold rate in the market when buying gold coins. Make sure that you do not lose the purchase receipts and for security purpose get a bank locker to store your gold coins.
It's advisable to buy small amount of gold each month, every alternate month or quarterly or whatever you can afford, as systematic investment with average out the gold purchase rate reducing the risk element.
Buy one, two, five or ten gram gold coin but not bigger than that as - if tomorrow for some reason you are in need of urgent money then you can sell one or more gold coins depending on your need and not one big gold coin for a small need.
To expect descent returns make sure that you hold on to your gold investment at-least for a period of 5 years or more.