Indians adore gold, the yellow shiny metal. Gold as a precious metal holds greatest significance in Indian tradition and culture. On every festive occasion and auspicious day, gold is bought as per the age-old custom. However, when it comes to treating gold as an investment asset, many Indians take a back seat. With the rising trend in equity market, interest in assets like gold are falling. But, the fact is, gold can be a good investment option and also can be bought as hedge against inflation. Apart from buying physical gold, there are various convenient ways to invest in gold. Gold ETF (Exchange Traded Fund) is one among them. Gold ETFs are investments made in standard gold bullions of 99.5% purity that are traded on exchange.
Gold Exchange Traded Funds (ETFs) are introduced in India in the year 2007. There are various financial firms that are registered with Securities and Exchange Board of India (SEBI) to offer gold ETFs. Let’s take a look at some top gold ETFs that are offered in the Indian market.
AUM – INR. 2440.68 Cr as on 31st March 2018
Minimum investment: INR. 10000
Performance snapshot of the fund
Returns as on 05th November 2018
| Period | Returns (%) |
| 1 Month | 1.9 |
| 3 Months | 7.8 |
| 6 Months | 2.1 |
| 1 Year | 7.9 |
| 2 Years | 0.2 |
| 3 Years | 5.8 |
| 5 Years | 0.9 |
Fund returns v/s Category average
| 1mth(%) | 3mth(%) | 6mth(%) | 1yr(%) | 2yr(%) | 3yr(%) | 5yr(%) | |
|---|---|---|---|---|---|---|---|
| Fund Returns | 1.9 | 7.8 | 2.1 | 7.9 | 0.2 | 5.8 | 6.3 |
| Category average | -1.7 | -3.3 | -0.6 | 1.4 | 8.8 | ||
AUM – INR. 725.12 Cr as on 31st March 2018 Minimum investment: INR. 5000
Performance snapshot of the fund
Returns as on 05th November 2018
| Period | Returns (%) |
| 1 Month | 1.9 |
| 3 Months | 7.9 |
| 6 Months | 2.3 |
| 1 Year | 8 |
| 2 Years | 0.1 |
| 3 Years | 5.6 |
| 3 Years | 0.8 |
Fund returns v/s Category average
| 1mth(%) | 3mth(%) | 6mth(%) | 1yr(%) | 2yr(%) | 3yr(%) | 5yr(%) | |
|---|---|---|---|---|---|---|---|
| Fund Returns | 1.9 | 7.9 | 2.3 | 8 | 0.1 | 5.6 | 0.8 |
| Category average | -1.7 | -3.3 | -0.6 | 1.4 | 8.8 | 7.6 | 6.3 |
AUM – INR. 458.53 Cr as on 31st March 2018
Minimum investment: INR. 1
Performance snapshot of the fund
| Period | Returns (%) |
| 1 Month | 1.9 |
| 3 Months | 7.9 |
| 6 Months | 2.3 |
| 1 Year | 8.1 |
| 2 Years | 0.7 |
| 3 Years | 6 |
| 5 Years | 0.9 |
Returns as on 05th November 2018
Fund returns v/s Category average
| 1mth(%) | 3mth(%) | 6mth(%) | 1yr(%) | 2yr(%) | 3yr(%) | 5yr(%) | |
|---|---|---|---|---|---|---|---|
| Fund Returns | 1.9 | 7.9 | 2.3 | 8.1 | 0.7 | 6 | 0.9 |
| Category average | -1.7 | -3.3 | -0.6 | 1.4 | 8.8 | 7.6 | 6.3 |
AUM – INR. 405.77 Cr as on 31st March 2018
Minimum investment: INR. 10000
Performance snapshot of the fund
| Period | Returns (%) |
| 1 Month | 1.9 |
| 3 Months | 8 |
| 6 Months | 2.4 |
| 1 Year | 8.3 |
| 2 Years | 0.2 |
| 3 Years | 5.7 |
| 5 Years | 0.7 |
Returns as on 05th November 2018
Fund returns v/s Category average
| 1mth(%) | 3mth(%) | 6mth(%) | 1yr(%) | 2yr(%) | 3yr(%) | 5yr(%) | |
|---|---|---|---|---|---|---|---|
| Fund Returns | 1.9 | 8 | 2.4 | 8.3 | 0.2 | 5.7 | 0.7 |
| Category average | -1.7 | -3.3 | -0.6 | 1.4 | 8.8 | 7.6 | 6.3 |
AUM – INR. 367.55 Cr as on 31st March 2018
Minimum investment: INR. 20000
Performance snapshot of the fund
| Period | Returns (%) |
| 1 Month | 1.9 |
| 3 Months | 8.1 |
| 6 Months | 2.5 |
| 1 Year | 8.5 |
| 2 Years | 0.5 |
| 3 Years | 6 |
| 5 Years | 0.9 |
Returns as on 05th November 2018
Fund returns v/s Category average
| 1mth(%) | 3mth(%) | 6mth(%) | 1yr(%) | 2yr(%) | 3yr(%) | 5yr(%) | |
|---|---|---|---|---|---|---|---|
| Fund Returns | 1.9 | 8.1 | 2.5 | 8.5 | 0.5 | 6 | 0.9 |
| Category average | -1.7 | -3.3 | -0.6 | 1.4 | 8.8 | 7.6 | 6.3 |
AUM – INR. 101 Cr as on 31st March 2018 Minimum investment: INR. 5000 Performance snapshot of the fund Returns as on 05th November 2018
Fund returns v/s Category average
AUM –INR 85.57 Cr as on 31st March 2018
Minimum Investment: INR. 5000
Performance snapshot of the fund
Returns as on 05th November 2018
| Period | Returns (%) |
| 1 Month | 1.9 |
| 3 Months | 8 |
| 6 Months | 2.4 |
| 1 Year | 8.2 |
| 2 Years | -0.2 |
| 3 Years | 5.5 |
| 5 Years | 0.6 |
Fund returns v/s Category average
| 1mth(%) | 3mth(%) | 6mth(%) | 1yr(%) | 2yr(%) | 3yr(%) | 5yr(%) | |
|---|---|---|---|---|---|---|---|
| Fund Returns | 1.9 | 8 | 2.4 | 8.2 | -0.2 | 5.5 | 0.6 |
| Category average | -1.7 | -3.3 | -0.6 | 1.4 | 8.8 | 7.6 | 6.3 |
AUM –INR 69.09 Cr as on 31st March 2018
Minimum Investment: INR. 10000
Performance snapshot of the fund
Returns as on 05th November 2018
| Period | Returns (%) |
| 1 Month | 1.8 |
| 3 Months | 7.7 |
| 6 Months | 2.5 |
| 1 Year | 8.4 |
| 2 Years | -1.1 |
| 3 Years | 4.8 |
| 5 Years | 0.2 |
Fund returns v/s Category average
| 1mth(%) | 3mth(%) | 6mth(%) | 1yr(%) | 2yr(%) | 3yr(%) | 5yr(%) | |
|---|---|---|---|---|---|---|---|
| Fund Returns | 1.8 | 7.7 | 2.5 | 8.4 | -1.1 | 4.8 | 0.2 |
| Category average | -1.7 | -3.3 | -0.6 | 1.4 | 8.8 | 7.6 | 6.3 |
AUM – INR. 44.99 Cr as on 31st March 2018 Minimum investment: INR. 5000
Performance snapshot of the fund
Returns as on 05th November 2018
| Period | Returns (%) |
| 1 Month | 1.9 |
| 3 Months | 8 |
| 6 Months | 2.7 |
| 1 Year | 8.8 |
| 2 Years | 0.9 |
| 3 Years | 6.2 |
| 5 Years | 1.1 |
Fund returns v/s Category average
| 1mth(%) | 3mth(%) | 6mth(%) | 1yr(%) | 2yr(%) | 3yr(%) | 5yr(%) | |
|---|---|---|---|---|---|---|---|
| Fund Returns | 1.9 | 8 | 2.7 | 8.8 | 0.9 | 6.2 | 1.1 |
| Category average | -1.7 | -3.3 | -0.6 | 1.4 | 8.8 | 7.6 | 6.3 |
What is an Exchange Traded Fund (ETF)? What are Gold ETFs?
Exchange traded fund is an investment fund which is much like stock that is listed and traded on stock exchange. Basically, ETFs are the mutual funds that are listed on stock exchange after the NFO (New Fund Offer). Exchange traded funds will have basket of stocks or underlying securities that reflect a composition of an index. Value of ETFs are determined by the underlying securities. Gold ETFs are the commodity ETFs that involve gold as the only principal asset. Basically, each unit of gold ETF represents physical gold, either in paper form or in dematerialised form. Gold ETFs are the investment options that give the dual benefit of both gold investments and stock trading. Through Gold ETFs, you can participate in gold bullion market without taking the actually delivery of physical gold and trade as you do in stock market.
How to invest in gold ETFs?
Investing in gold ETFs is quite simple. All you need to have is demat and trading account that is used for stock trading. You need to choose the gold ETF of your choice and place the order online on trading portal to start investing.
What are the benefits of investing in Gold ETFs?
Gold ETFs are excellent options for investing in gold. Here are a few amazing benefits offered by gold ETFs
What are the tax benefits of Gold ETFs?
Gold ETFs are treated as collectibles and taxed similar to that of the physical gold. Though gold ETFs are traded on exchange, these are considered as non-equity investments for taxation purpose. Gold ETFs only attract capital gain tax. No wealth tax and value added taxes are levied on gold ETFs. This makes it a tax efficient investment option.
Who should invest in gold ETFs?
Gold is considered as a good portfolio diversifier. Gold is also the safe haven investment against inflation. The money you invest in gold ETFs goes towards standard gold bullions with 99.5% purity. Though gold ETFs are traded on exchange, they are still considered to be the low-risk investment options. Any investors seeking diversification to their stock portfolio, can consider buying gold ETFs.
