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Top Gold ETFs in India

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.

Here are top gold ETFs offered in India

Reliance ETF Gold BeES

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

PeriodReturns (%)
1 Month1.9
3 Months7.8
6 Months2.1
1 Year7.9
2 Years0.2
3 Years5.8
5 Years0.9

Fund returns v/s Category average

1mth(%)3mth(%)6mth(%)1yr(%)2yr(%)3yr(%)5yr(%)
Fund Returns1.97.82.17.90.25.86.3
Category average-1.7-3.3-0.61.48.8

SBI Gold ETF

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

PeriodReturns (%)
1 Month1.9
3 Months7.9
6 Months2.3
1 Year8
2 Years0.1
3 Years5.6
3 Years0.8

Fund returns v/s Category average

1mth(%)3mth(%)6mth(%)1yr(%)2yr(%)3yr(%)5yr(%)
Fund Returns1.97.9 2.380.15.60.8
Category average-1.7-3.3-0.61.48.87.66.3

HDFC Gold ETF

AUM – INR. 458.53 Cr as on 31st March 2018

Minimum investment: INR. 1

Performance snapshot of the fund

PeriodReturns (%)
1 Month1.9
3 Months7.9
6 Months2.3
1 Year8.1
2 Years0.7
3 Years6
5 Years0.9

Returns as on 05th November 2018

Fund returns v/s Category average

1mth(%)3mth(%)6mth(%)1yr(%)2yr(%)3yr(%)5yr(%)
Fund Returns1.97.92.38.10.760.9
Category average-1.7-3.3-0.61.48.87.66.3

Kotak Gold ETF

AUM – INR. 405.77 Cr as on 31st March 2018

Minimum investment: INR. 10000

Performance snapshot of the fund

PeriodReturns (%)
1 Month1.9
3 Months8
6 Months2.4
1 Year8.3
2 Years0.2
3 Years5.7
5 Years0.7

Returns as on 05th November 2018

Fund returns v/s Category average

1mth(%)3mth(%)6mth(%)1yr(%)2yr(%)3yr(%)5yr(%)
Fund Returns1.982.48.30.25.70.7
Category average-1.7-3.3-0.61.48.87.66.3

UTI Gold Exchange Traded Fund

AUM – INR. 367.55 Cr as on 31st March 2018

Minimum investment: INR. 20000

Performance snapshot of the fund

PeriodReturns (%)
1 Month1.9
3 Months8.1
6 Months2.5
1 Year8.5
2 Years0.5
3 Years6
5 Years0.9

Returns as on 05th November 2018

Fund returns v/s Category average

1mth(%)3mth(%)6mth(%)1yr(%)2yr(%)3yr(%)5yr(%)
Fund Returns1.98.12.58.50.560.9
Category average-1.7-3.3-0.61.48.87.66.3

ICICI Prudential Gold ETF

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

Axis Gold ETF

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

PeriodReturns (%)
1 Month1.9
3 Months8
6 Months2.4
1 Year8.2
2 Years-0.2
3 Years5.5
5 Years0.6

Fund returns v/s Category average

1mth(%)3mth(%)6mth(%)1yr(%)2yr(%)3yr(%)5yr(%)
Fund Returns1.982.48.2-0.25.50.6
Category average-1.7-3.3-0.61.48.87.66.3

IDBI Gold ETF

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

PeriodReturns (%)
1 Month1.8
3 Months7.7
6 Months2.5
1 Year8.4
2 Years-1.1
3 Years4.8
5 Years0.2

Fund returns v/s Category average

1mth(%)3mth(%)6mth(%)1yr(%)2yr(%)3yr(%)5yr(%)
Fund Returns1.87.72.58.4-1.14.80.2
Category average-1.7-3.3-0.61.48.87.66.3

Canara Robeco Gold Exchange Traded Fund

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

PeriodReturns (%)
1 Month1.9
3 Months8
6 Months2.7
1 Year8.8
2 Years0.9
3 Years6.2
5 Years1.1

Fund returns v/s Category average

1mth(%)3mth(%)6mth(%)1yr(%)2yr(%)3yr(%)5yr(%)
Fund Returns1.982.78.80.96.21.1
Category average-1.7-3.3-0.61.48.87.66.3

Frequently Asked Questions

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

  • Cost-efficient: gold ETFs can be purchased at an international rate. Unlike gold ornaments and coins, there is no added cost like making charges, wastages etc. involved with gold EFTs. It would only involve some nominal fund management fees.
  • High liquidity: As gold ETFs are traded on exchange, it offers high level of liquidity.
  • Flexibility: Unlike physical gold which consumes time for purchase, gold ETFs can be purchased online. Gold ETFs can be held in the dematerialised form in your demat account. It’s easy to purchase and sell gold ETFs as they are traded on the stock exchange.
  • Allows you to easily participate in gold bullion market: Without taking the physical delivery of gold, you can participate in trading activities of gold bullion market.
  • Secure gold investment option: with transparency and safety, gold ETFs are also considered profitable investment options.
  • **No storage issue: Unlike physical gold that carries a fear of threat to hold it for long time, gold ETFs are very safe and easy to hold for long. As gold ETFs are held in dematerialised form, there is no fear of theft and storage issues.
  • Tax-friendly investment: Gold ETF is a tax efficient investment option as it involves no wealth tax and value-added tax.
  • Investment in smaller measures: Gold ETFs can be purchased in smaller denominations unlike physical gold that needs huge amount to purchase a coin or ornaments.

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.

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