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HomeGoldTop 5 Gold ETF in India 2020 - up to 50% returns...

Top 5 Gold ETF in India 2020 – up to 50% returns in last 5 years

Gold ETF is one of the popular investment options nowadays. This is mainly due to an increase in the gold price. Gold has delivered very good returns in the past. In India, the gold price has jumped over 137% in the last 10 years. The gold price was Rs.18500 per 10 grams in 2010 and now the gold price has grown up to Rs.44000 in 2020.

Gold yellow shining metal has given 25% returns to the investors in the past year. The price of gold is likely to grow further in the days to come. It is always advisable to keep GOLD in your investment portfolio. Buying gold means buying protection against inflation & balancing market risk.

There are multiple ways to invest in gold such as physical gold, gold funds, sovereign gold bond, and Gold ETF. Out of these options, Gold ETF in India turns out to be a very good investment option. It is easy to buy and sell gold via the Gold ETF option. As it is in the electronic form you need not worry about physical theft. You are not required to pay additional making charges while buying a Gold ETF. You can buy ETF in small quantities.

In the past five years, Gold ETF in India has given more than 50% absolute return. If you are interested in buying a Gold ETF’s, here is detail about Top 5 Gold ETF in India 2020 along with Gold price history of the last 50 years.

Also Read –20 Best Mutual Funds for Investment in 2020-21

Why to Invest in Gold? – Gold Price History

Historically Gold has given magnificent returns to the investor. The graph of Gold Price History of the last 50 years (1970-2020) is exponential.

Gold Price History 50 Years

The below chart represents the historical movement of gold price in India.

Gold Price History

From gold price history and graph it is clear that Gold is one of the best investment option for the long run.

What is Gold ETF?

Gold ETF is an electronically traded fund that can be bought and sold on stock exchange just like stock. The price of ETF is closest to the actual price of gold. Benchmark of Gold ETF is physical price of gold. ETF can be purchased in small quantity even singe unit (1-gram gold). You can sell ETF anytime. As it is in electronic format you need not to worry about storage or theft.

Benefits of buying Gold ETF

  • You are not required to pay any additional premium or making charges. You end up paying these charges when you buy a physical gold.
  • You need not to worry about theft of gold ETF, as it is in the electronic format.
  • It is very easy to buy and sell ETF. You can do it with a click of button.
  • You need not to worry about impurity of gold.
  • You can track your investment value in real time.
  • These funds are extremely liquid in nature.
  • You can accumulate gold gradually by purchasing ETF in small quantities.
  • You need not to pay any tax such as GST when you buy Gold ETF.

How to Pick Gold ETF?

There are multiple Gold ETF’s available in the market. The performance of these funds are nearly same as it is linked with physical gold price. It is extremely difficult to shortlist best fund for investment. I have selected best ETF fund based on following factors.

  • Fund Performance – Fund performance over the last few years. I have considered last five years’ performance.
  • Tracking error – Tracking error with respect to gold price. The fund performance should be nearly equal to physical gold rate – benchmark.
  • Trading Volume – ETF should be tracked based on the trading volume of the ETF fund. There are few funds with low trading volume. I have discarded those funds.
  • Fund Size – The fund size should be above 100 Cr or above.
  • Expense Ratio – I have shortlisted fund with low expense ratio. Nearly equivalent to 1%.

Top Gold ETF in India 2020 – up to 50% returns in last 5 years

Aditya Birla Sun Life Gold ETF

Aditya Birla Sun Life Gold ETF is one of the top and recommended fund for investment. This fund has generated 38.29% absolute returns in one year (As on March 2020) for the investor. Historically this fund has given very good returns to the investor. Expense ratio of this fund is very low.

ETF Name

Fund Size 6 Month (%) 1 Year (%) 3 Years (%)

5 Years (%)

Aditya Birla ETF 105.03 Cr 14.08% 38.29% 47.65%

60.31%

 

SBI Gold ETF

SBI Gold ETF is most popular and recommended ETF for the investment. I have already purchased this ETF. This fund has generated 38.31% returns for the investor in last one year (As on March 2020). The expense ratio of this fund is slightly high.

ETF Name Fund Size 6 Month (%) 1 Year (%) 3 Years (%)

5 Years (%)

SBI Gold ETF 866.34 Cr 14.03% 38.31% 47.31%

59.48%

 

UTI Gold ETF

UTI Gold ETF is next top gold ETF for investment in 2020. This fund has generated magnificent returns for the investors. Tracking error for this fund is slightly high.

ETF Name

Fund Size 6 Month (%) 1 Year (%) 3 Years (%) 5 Years (%)
UTI Gold ETF 486.58 Cr 13.83% 37.96% 48.14%

60.92%

HDFC Gold ETF                                                                                                                                                    

HDFC Gold ETF is one of the Best Gold Exchanged Traded Fund. This fund has given very good returns to the investor. The expense ratio of this fund is very low. This fund has given nearly equal return with respect to physical gold price.

ETF Name

Fund Size 6 Month (%) 1 Year (%) 3 Years (%) 5 Years (%)
HDFC Gold ETF 669.47 Cr 13.96% 37.45% 48.16%

59.93%

Kotak Gold ETF

Kotak Gold ETF is next in the list of top gold ETF. The fund size of this fund is 649 Cr. The expense ratio of this fund is lowest. One can invest in this fund for long term prospective.

ETF Name

Fund Size 6 Month (%) 1 Year (%) 3 Years (%) 5 Years (%)
Kotak Gold ETF 649.11 Cr 13.91% 38.20% 47.61%

59.60%

Note: The returns shown here are absolute and in no particular order. The returns are as on 6th March 2020 for all funds.

(The views content and recommendations expressed in this post are based on my experience and analysis. Please consult your financial advisor before taking any position in above Gold ETF’s)

Shitanshu Kapadia
Shitanshu Kapadiahttps://moneyexcel.com/
Hi, I am Shitanshu Kapadia founder of moneyexcel.com. I have written 1750+ articles on this blog. I am PGDBA(marketing), engaged in blogging for 5 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. The purpose of this blog is to spread financial awareness and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.
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