Investing in Gold Exchange Traded Funds (ETFs) has become increasingly popular among investors in India seeking exposure to the precious metal without the hassle of physical ownership. This guide will explore some of the Best Gold ETFs in India, considering longevity, asset under management (AUM), professional management, and historical returns.
Below is the list of the best Gold ETFs in India, highlighting their market cap and 5-year return performance. These Top 5 Gold ETFs in India are popular options for investors seeking exposure to gold:
| Best Gold ETFs in India | Market Cap | 5 Yr Return |
|---|---|---|
| Birla Sun Life Gold ETF | 901.42 Cr | 97.00% |
| Axis Gold ETF | 1132.82 Cr | 94.85% |
| HDFC Gold ETF | 5685.35 Cr | 94.27% |
| Nippon India ETF Gold BeES | 14503.65 Cr | 93.07% |
| Kotak Gold ETF | 4949.17 Cr | 92.46% |
These Top 5 Gold ETFs in India provide solid returns while offering liquidity, making them excellent choices for those looking to diversify with gold.
Gold ETFs are investment funds traded on stock exchanges and backed by physical gold bullion. In India they are regulated by the Securities and Exchange Board of India (SEBI) and offered by various mutual fund companies. These ETFs aim to track the performance of gold prices and provide investors with returns that closely mirror the movements in the price of gold.
One of the key advantages of Gold ETFs is their ability to offer investors exposure to gold without the need for physical storage or security concerns. Investors can buy and sell ETF units on the stock exchange, just like they would with stocks, making them highly liquid and convenient investment instruments.
The Birla Sun Life Gold ETF is one of the best gold ETFs in India, commonly called BSLGOLDETF, it is managed by Birla Sun Life Mutual Fund and is recognized for its expert management and well-thought-out investment strategies. Backed by Birla Sun Life's strong reputation in the financial sector, BSLGOLDETF is managed by experienced professionals who carefully monitor market movements to optimize returns. This fund is a strong contender for investors looking for steady growth and expert guidance in their gold investments.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 28.61 | 59.55 | 97.0 |
AXISGOLD, offered by Axis Mutual Fund, stands out as another best Gold ETFs in India due to its professional management and strategic investment approach. Managed by a team of seasoned professionals, AXISGOLD focuses on maximizing returns while minimizing risk. This ETF has gained popularity among investors seeking reliable gold exposure as part of a diversified portfolio.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 28.65 | 59.94 | 94.85 |
HDFCGOLD, managed by HDFC Mutual Fund, is one of the largest gold ETFs in India in terms of assets under management (AUM). This ETF gives investors direct exposure to gold, making it ideal for those seeking a safe haven during market volatility.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 28.65 | 59.48 | 94.27 |
Nippon India ETF Gold BeES, commonly known as GOLDBEES, is one of the best Gold ETFs in India, offered by Nippon India Mutual Fund (formerly Reliance Mutual Fund). As India's oldest and largest Gold ETF, GOLDBEES has consistently provided investors with a reliable and stable option for investing in gold. Its longevity and large size in the market make it a preferred choice for those seeking stability and liquidity in their gold investments.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 28.36 | 59.05 | 93.07 |
KOTAKGOLD, managed by Kotak Mutual Fund, is one of the best gold ETFs in India known for its consistent performance and strong returns. Focused on capital appreciation, KOTAKGOLD has a proven track record of outperforming its benchmarks, making it a standout choice for investors looking to maximize their gold investments. Its proactive investment strategy and emphasis on delivering long-term wealth creation have earned it a solid reputation in the Gold ETF space.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 28.94 | 59.01 | 92.46 |
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| Top 10 Gold ETFs in India | Market Cap(Cr) | 1 Year Return |
|---|---|---|
| LIC MF Gold ETF | 139.16 | 29.74 |
| UTI Gold ETF | 1488.12 | 29.30 |
| ICICI Pru Gold ETF | 5332.31 | 29.02 |
| Kotak Gold ETF | 4949.17 | 28.94 |
| Invesco India Gold ETF | 134.08 | 28.76 |
| Quantum Gold Fund ETF | 234.97 | 28.75 |
| Axis Gold ETF | 1132.82 | 28.65 |
| HDFC Gold ETF | 5685.35 | 28.65 |
| Aditya Birla SL Gold ETF | 901.42 | 28.61 |
| SBI Gold ETF | 2487.39 | 28.42 |
| Nippon India ETF Gold BeES | 14503.65 | 28.36 |
| Top Gold ETFs in India | Market Cap(Cr) | 5 Year Return |
|---|---|---|
| Axis Gold ETF | 1132.82 | 94.85 |
| SBI Gold ETF | 2487.39 | 94.81 |
| HDFC Gold ETF | 5685.35 | 94.27 |
| ICICI Pru Gold ETF | 5332.31 | 93.75 |
| Invesco India Gold ETF | 134.08 | 93.51 |
| UTI Gold ETF | 1488.12 | 93.38 |
| Nippon India ETF Gold BeES | 14503.65 | 93.07 |
| Quantum Gold Fund ETF | 234.97 | 93.01 |
| Kotak Gold ETF | 4949.17 | 92.46 |
| Aditya Birla SL Gold ETF | 901.42 | NA |
| LIC MF Gold ETF | 139.16 | NA |
Gold Exchange-Traded Funds (ETFs) function like mutual funds but track the price of gold instead of holding physical gold. When you invest in a Gold ETF, your money is pooled with that of other investors and used to buy gold bullion. This gold is then stored securely by the fund's custodian.
The value of your investment in the Gold Exchange Traded Funds is directly linked to the price of gold. As the price of gold rises or falls in the market, the value of your ETF shares also fluctuates accordingly. You can buy or sell Gold ETF units on the stock exchange, just like stocks, making them easy to trade and liquidate.
Overall, this ETFs offer a convenient and cost-effective way to invest in gold without the hassle of owning physical gold.
Investing in Best Gold ETFs can be an intelligent decision, but it's essential to consider a few factors before diving in:
Investing in Gold ETFs is straightforward and hassle-free. Follow these simple steps:
Here's a table highlighting the differences between Gold ETFs and physical gold:
| Aspect | Gold ETF | Physical Gold |
|---|---|---|
| Ownership | Represents ownership of gold in electronic form. | Ownership of physical gold in the form of bars or coins. |
| Storage | Gold is stored securely by the fund's custodian. | Requires safe storage at home or in a bank vault, incurring storage costs. |
| Liquidity | Easily tradable on stock exchanges, providing liquidity. | Selling physical gold may take time and involve additional costs. |
| Accessibility | Purchased and sold through brokerage accounts. | Requires visiting a jeweller or bullion dealer for transactions. |
| Cost | Generally lower expenses compared to physical gold. | Involves additional costs such as making charges, storage fees, and insurance. |
| Tax Treatment | Taxed as capital assets, subject to capital gains tax. | Tax implications vary based on the holding period and jurisdiction. |
| Transparency | Transparent pricing and holdings information are available. | The value may be subject to appraisal and verification. |
| Risk Management | Acts as a hedge against inflation and currency devaluation. | Provides tangible asset protection but may be susceptible to theft or loss. |
ETFs offer investors a convenient and cost-effective way to diversify their portfolios and achieve their investment objectives. By carefully evaluating the best gold ETFs available in India and considering key factors such as performance, management, and liquidity, investors can make informed decisions to enhance their investment returns.
Yes, intraday trading is possible with gold ETFs. Investors can buy and sell these ETFs on the stock exchange throughout the trading day, just like stocks.
The best gold ETFs in India for 2024 include GOLDBEES from Nippon India, HDFC Gold ETF, Axis Gold ETF, Birla Gold ETF, and Kotak Gold ETF. These options are popular for their performance, liquidity, and trustworthiness, making them great choices for gold investment.
The top 5 best gold ETFs in India based on 1years return include top-performing funds that offer strong liquidity and management. Key options are:
1. UTI Gold Exchange Traded Fund
2. SBI-ETF Gold
3. Aditya BSL Gold ETF
4. HDFC Gold Exchange Traded Fund
5. IDBI Gold Exchange Traded Fund
1. SBI-ETF Gold
2. Invesco India Gold Exchange Traded Fund
3. IDBI Gold Exchange Traded Fund
4. Kotak Gold ETF
5. Axis Gold ETF
When selecting an ETF for investment, the investor should consider factors like the fund's expense ratio, tracking error, liquidity, underlying assets, and historical performance. Additionally, investors should assess the fund's management team, investment strategy, and risk profile to ensure alignment with their investment objectives and risk tolerance.
Place a sell order through your trading platform on the stock exchange to sell gold ETFs in India. The sale proceeds will be credited to your account based on the current market price of gold.
You are subject to capital gains tax when you sell your Gold ETF units at a profit. If you hold the units for less than three years, the gains are considered short-term and taxed according to your income tax slab rate. To know more, check the in-depth information on the Tax Implications of ETF Investments
Disclaimer: This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations.
