Move over equity markets, mutual funds and bonds. Investors across India are these days picking up and trading in the latest investment avenue in town: the Gold Exchange Traded Funds.

Only two asset management companies -- UTI and Benchmark -- have so far launched gold ETFs. But they have been listed on the National Stock Exchange with good response from investors.

According to the data from the National Stock Exchange, there were 41,000 investors who applied for the two gold ETFs. The applicants have invested nearly Rs 235 crore (Rs 2.35 billion) into these gold funds.

Gold ETF is a new investment option that is likely to create a wave, challenging the best known investment options like mutual funds and equity markets.

Though gold ETFs, people who want to invest and trade in gold in the demat form thereby eliminating the cost and risk associated with physical gold investments.

In India, people keep gold in the form of jewellery, biscuits etc which is an illiquid form in terms of investments.

Analysts said the two Gold ETFs are witnessing a slow but strong reponse with decent trading turnovers.

"The gold ETFs will do well. There are a number of companies getting ready to launch gold ETFs. It has a huge market potential in a country like India where people buy gold and keep at home," Sandeep Arora, a leading investment banking consultant said.

Benchmark's 'Gold BEES' on Monday closed at Rs 921.58, up 1.26 per cent with decent traded quantity of 3,411 units with a turnover of Rs 31.45 lakh (Rs 3.14 million).

UTI's Goldshare ended at Rs 919.39 up 1.05 per cent on Monday on the National Stock Exchange with a turnover of Rs 1.43 crore (Rs 14.3 million).