In recent years, the popularity of Gold ETFs (Exchange Traded Fund) amongst investors has surged high. Investors are more inclined towards Investing in Gold ETFs as they track gold prices and eliminate the need of storage. But, when it comes to Investing, often investors are confused over choosing the best Gold ETFs.
The ideal way to go for Gold ETFs is to focus on the fund with the lowest tracking error. It is advisable to go for a Gold ETF that has the largest margin and highest volume. To make it convenient for investors, we have listed down the best Gold ETFs to invest in India.
How to Invest in Gold ETFs?
To invest in gold ETF, you need to have a Demat account and an online Trading Account. To open an account, you would require a PAN Card, an address proof and an identity proof. After the account is ready, you can choose a Gold ETF and place an order. Once the trade is executed a confirmation is sent to you in your account. A small fee from the fund house and the broker is charged when one buys or sells these Gold ETFs.
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Best Gold ETFs to Invest 2023
Some of the best performing Underlying gold ETFs having AUM/Net Assets > 25 Crore are:
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) Invesco India Gold Fund Growth ₹17.6665
↓ -0.09 ₹64 6.1 18.1 15.1 6.9 12.8 12.8 Aditya Birla Sun Life Gold Fund Growth ₹18.1346
↓ -0.04 ₹281 5.5 17.9 15 6.1 12.7 12.3 SBI Gold Fund Growth ₹18.16
↓ -0.06 ₹1,375 5.3 18.1 15.6 6.2 12.8 12.6 Nippon India Gold Savings Fund Growth ₹23.8471
↓ -0.10 ₹1,550 5 18.2 15.2 5.9 12.5 12.3 ICICI Prudential Regular Gold Savings Fund Growth ₹19.2231
↓ -0.06 ₹705 4.9 18.2 15.5 6.2 12.5 12.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Apr 23
To provide returns that closely corresponds to returns provided by Invesco India Gold Exchange Traded Fund. Invesco India Gold Fund is a Gold - Gold fund was launched on 5 Dec 11. It is a fund with Moderately High risk and has given a Below is the key information for Invesco India Gold Fund Total investment amount is ₹300,000 Returns up to 1 year are on An Open ended Fund of Funds Scheme with the investment objective to provide returns that tracks returns provided by Birla Sun Life Gold ETF (BSL Gold ETF). Aditya Birla Sun Life Gold Fund is a Gold - Gold fund was launched on 20 Mar 12. It is a fund with Moderately High risk and has given a Below is the key information for Aditya Birla Sun Life Gold Fund Total investment amount is ₹300,000 Returns up to 1 year are on The scheme seeks to provide returns that closely correspond to returns provided by SBI - ETF Gold (Previously known as SBI GETS). SBI Gold Fund is a Gold - Gold fund was launched on 12 Sep 11. It is a fund with Moderately High risk and has given a Below is the key information for SBI Gold Fund Total investment amount is ₹300,000 Returns up to 1 year are on The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by Reliance ETF Gold BeES. Nippon India Gold Savings Fund is a Gold - Gold fund was launched on 7 Mar 11. It is a fund with Moderately High risk and has given a Below is the key information for Nippon India Gold Savings Fund Total investment amount is ₹300,000 Returns up to 1 year are on ICICI Prudential Regular Gold Savings Fund (the Scheme) is a fund of funds scheme with the primary objective to generate returns by investing in units of ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF).However, there can be no assurance that the investment objectives of the Scheme will be realized. ICICI Prudential Regular Gold Savings Fund is a Gold - Gold fund was launched on 11 Oct 11. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Regular Gold Savings Fund Total investment amount is ₹300,000 Returns up to 1 year are on 1. Invesco India Gold Fund
CAGR/Annualized return of 5.1% since its launch. Return for 2022 was 12.8% , 2021 was -5.5% and 2020 was 27.2% . Invesco India Gold Fund
Growth Launch Date 5 Dec 11 NAV (28 Apr 23) ₹17.6665 ↓ -0.09 (-0.48 %) Net Assets (Cr) ₹64 on 31 Mar 23 Category Gold - Gold AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.43 Sharpe Ratio 0.96 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-6 Months (2%),6-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹10,125 31 Mar 20 ₹13,619 31 Mar 21 ₹13,917 31 Mar 22 ₹15,745 31 Mar 23 ₹18,378 Invesco India Gold Fund SIP Returns
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Returns for Invesco India Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Apr 23 Duration Returns 1 Month 2.3% 3 Month 6.1% 6 Month 18.1% 1 Year 15.1% 3 Year 6.9% 5 Year 12.8% 10 Year 15 Year Since launch 5.1% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.8% 2021 -5.5% 2020 27.2% 2019 21.4% 2018 6.6% 2017 1.3% 2016 21.6% 2015 -15.1% 2014 -9% 2013 -7.6% Fund Manager information for Invesco India Gold Fund
Name Since Tenure Krishna Cheemalapati 4 Jan 20 3.24 Yr. Data below for Invesco India Gold Fund as on 31 Mar 23
Asset Allocation
Asset Class Value Cash 2.07% Other 97.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Gold ETF
- | -100% ₹64 Cr 119,682
↑ 1,255 Triparty Repo
CBLO/Reverse Repo | -2% ₹1 Cr Net Receivables / (Payables)
CBLO | -2% -₹1 Cr 2. Aditya Birla Sun Life Gold Fund
CAGR/Annualized return of 5.5% since its launch. Return for 2022 was 12.3% , 2021 was -5% and 2020 was 26% . Aditya Birla Sun Life Gold Fund
Growth Launch Date 20 Mar 12 NAV (27 Apr 23) ₹18.1346 ↓ -0.04 (-0.22 %) Net Assets (Cr) ₹281 on 31 Mar 23 Category Gold - Gold AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.49 Sharpe Ratio 0.88 Information Ratio 0 Alpha Ratio 0 Min Investment 100 Min SIP Investment 100 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹10,278 31 Mar 20 ₹13,930 31 Mar 21 ₹13,846 31 Mar 22 ₹15,840 31 Mar 23 ₹18,144 Aditya Birla Sun Life Gold Fund SIP Returns
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Returns for Aditya Birla Sun Life Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Apr 23 Duration Returns 1 Month 2% 3 Month 5.5% 6 Month 17.9% 1 Year 15% 3 Year 6.1% 5 Year 12.7% 10 Year 15 Year Since launch 5.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.3% 2021 -5% 2020 26% 2019 21.3% 2018 6.8% 2017 1.6% 2016 11.5% 2015 -7.2% 2014 -9.4% 2013 -6.9% Fund Manager information for Aditya Birla Sun Life Gold Fund
Name Since Tenure Lovelish Solanki 30 Jun 18 4.76 Yr. Pranav Gupta 31 Mar 23 0 Yr. Data below for Aditya Birla Sun Life Gold Fund as on 31 Mar 23
Asset Allocation
Asset Class Value Cash 4.02% Other 95.98% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Gold ETF
- | -98% ₹276 Cr 51,457,587
↓ -2,300,000 Clearing Corporation Of India Limited
CBLO/Reverse Repo | -2% ₹6 Cr Net Receivables / (Payables)
CBLO | -0% -₹1 Cr 3. SBI Gold Fund
CAGR/Annualized return of 5.3% since its launch. Return for 2022 was 12.6% , 2021 was -5.7% and 2020 was 27.4% . SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (28 Apr 23) ₹18.16 ↓ -0.06 (-0.32 %) Net Assets (Cr) ₹1,375 on 31 Mar 23 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.28 Sharpe Ratio 0.92 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹10,193 31 Mar 20 ₹14,321 31 Mar 21 ₹13,923 31 Mar 22 ₹15,982 31 Mar 23 ₹18,493 SBI Gold Fund SIP Returns
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Apr 23 Duration Returns 1 Month 2.3% 3 Month 5.3% 6 Month 18.1% 1 Year 15.6% 3 Year 6.2% 5 Year 12.8% 10 Year 15 Year Since launch 5.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.6% 2021 -5.7% 2020 27.4% 2019 22.8% 2018 6.4% 2017 3.5% 2016 10% 2015 -8.1% 2014 -10.2% 2013 -6.6% Fund Manager information for SBI Gold Fund
Name Since Tenure Raviprakash Sharma 12 Sep 11 11.56 Yr. Data below for SBI Gold Fund as on 31 Mar 23
Asset Allocation
Asset Class Value Cash 1.47% Other 98.53% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹1,376 Cr 261,021,194
↑ 1,994,839 Net Receivable / Payable
CBLO | -1% -₹14 Cr Treps
CBLO/Reverse Repo | -1% ₹13 Cr 4. Nippon India Gold Savings Fund
CAGR/Annualized return of 7.4% since its launch. Return for 2022 was 12.3% , 2021 was -5.5% and 2020 was 26.6% . Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (28 Apr 23) ₹23.8471 ↓ -0.10 (-0.43 %) Net Assets (Cr) ₹1,550 on 31 Mar 23 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.39 Sharpe Ratio 0.88 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (2%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹10,161 31 Mar 20 ₹13,791 31 Mar 21 ₹13,730 31 Mar 22 ₹15,799 31 Mar 23 ₹18,222 Nippon India Gold Savings Fund SIP Returns
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Returns for Nippon India Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Apr 23 Duration Returns 1 Month 1.6% 3 Month 5% 6 Month 18.2% 1 Year 15.2% 3 Year 5.9% 5 Year 12.5% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.3% 2021 -5.5% 2020 26.6% 2019 22.5% 2018 6% 2017 1.7% 2016 11.6% 2015 -8.1% 2014 -9.8% 2013 -7.6% Fund Manager information for Nippon India Gold Savings Fund
Name Since Tenure Mehul Dama 6 Nov 18 4.4 Yr. Data below for Nippon India Gold Savings Fund as on 31 Mar 23
Asset Allocation
Asset Class Value Cash 1.32% Other 98.68% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | -100% ₹1,549 Cr 303,334,419
↓ -1,770,000 Triparty Repo
CBLO/Reverse Repo | -1% ₹22 Cr Net Current Assets
Net Current Assets | -1% -₹22 Cr Cash Margin - Ccil
CBLO | -0% ₹0 Cr 5. ICICI Prudential Regular Gold Savings Fund
CAGR/Annualized return of 5.8% since its launch. Return for 2022 was 12.7% , 2021 was -5.4% and 2020 was 26.6% . ICICI Prudential Regular Gold Savings Fund
Growth Launch Date 11 Oct 11 NAV (28 Apr 23) ₹19.2231 ↓ -0.06 (-0.30 %) Net Assets (Cr) ₹705 on 31 Mar 23 Category Gold - Gold AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.33 Sharpe Ratio 0.88 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-15 Months (2%),15 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹10,273 31 Mar 20 ₹13,767 31 Mar 21 ₹13,835 31 Mar 22 ₹15,795 31 Mar 23 ₹18,238 ICICI Prudential Regular Gold Savings Fund SIP Returns
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Returns for ICICI Prudential Regular Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Apr 23 Duration Returns 1 Month 1.8% 3 Month 4.9% 6 Month 18.2% 1 Year 15.5% 3 Year 6.2% 5 Year 12.5% 10 Year 15 Year Since launch 5.8% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.7% 2021 -5.4% 2020 26.6% 2019 22.7% 2018 7.4% 2017 0.8% 2016 8.9% 2015 -5.1% 2014 -9.2% 2013 -6.7% Fund Manager information for ICICI Prudential Regular Gold Savings Fund
Name Since Tenure Manish Banthia 27 Sep 12 10.51 Yr. Nish*t Patel 29 Dec 20 2.25 Yr. Data below for ICICI Prudential Regular Gold Savings Fund as on 31 Mar 23
Asset Allocation
Asset Class Value Cash 1.96% Other 98.04% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -100% ₹705 Cr 134,014,011
↓ -3,854,610 Treps
CBLO/Reverse Repo | -1% ₹8 Cr Net Current Assets
Net Current Assets | -1% -₹7 Cr
How To Choose Best Gold ETFs?
The parameters to choose the best Gold ETFs in India are as follows-
Fund Track Record
It is important to know the past performance of the fund house in Exchange Traded Funds. Investors looking for the best Gold ETFs, it is advisable to choose a fund which has a track record of at least three years.
Liquidity
Exchange Traded Funds need to be checked based on the trading activity. Most of the ETFs trade heavily based on the changes in the benchmark, but some ETFs trade barely. The trading activity actually confirms the liquidity of an ETF. The higher the trading activity, the higher is the liquidity.
Tracking Error
The ETFs are expected to track the underlying index closely, but some ETF do not track it closely. An investor should prefer an ETF with minimum tracking error.
FAQs
1. How is the value of gold ETFs evaluated?
A: The value of gold ETFs is tracked based on the Market value of physical gold. It represent the price of gold bars that have a purity of 99.5%. You can track the price of gold by logging into the NSE website or the BSE, and it will be reflected in the ongoing price of gold ETFs.
2. Who sells gold ETFs?
A: Mutual Fund companies and financial institutes sell gold ETFs. Some of the well-performing gold ETFs are mentioned above.
3. Can I purchase physical gold with the gold ETFs?
A: No, once the investment period is completed, you can close the account and withdraw the money. You cannot en-cash the gold ETFs for physical gold.
4. What do the gold ETFs invest in?
A: Gold ETFs have diversified investments in gold mining, Manufacturing, transportation, and other similar sectors. Usually, the assets are made in industries known to produce good returns, ensuring that the investments are safe and secure.
5. Why should I invest in gold ETFs?
A: Gold ETFs are suitable investments, especially if you are looking to diversify your investment Portfolio. Gold, as experts mention, is one of the safest investments as its value does not go down extensively. The same is applicable for gold ETFs.
6. Is there any exit load in this investment?
A: Given the nature of the investment, most companies do not levy an exit load in gold ETFs. Hence, if you want to withdraw from the investment before its maturity, you do not have to pay any exit load. However, most financial institutes levy a brokerage charge you will have to discuss with your fund manager.
7. Are there any tax benefits on the investments?
A: You would not have to pay any VAT in the case of gold ETFs, which would be the case if you had purchased physical gold of similar value. Moreover, depending on the income tax slab that you fall under, you can enjoy tax benefits from the investment you make. With gold ETFs, you will not have to pay any wealth tax, long-term Capital gains tax, or Sales Tax.
8. Can I use gold ETFs as collateral for loans?
A: Yes, gold ETFs are similar to gold, and hence, you can use them as Collateral for loans. You can it to secure the loan that you require from a Bank or a financial institute.
