Abstract
This paper investigates the behavior of the capital market investors in Kerala towards gold investment. It also examines the perception of the Gold Exchange Traded Funds as a gold investment option among the capital market investors in Kerala. A structured questionnaire was used for collecting data from the Keralities who are demat account holders and invest in the capital market. Factor analysis was used to identify the factors which influence the perception of the investors towards Gold Exchange Traded Funds. Discriminant analysis was used to identify the factors influencing the investment in Gold Exchange Traded Fund. This is the only study, which has been conducted to study about the perception of the capital market investors in Kerala towards Gold Exchange Traded Funds as an investment option in gold.