God is very hot topic to discussion. In place of buying physical gold. You can buy Gold ETFs. Therefore it offers more advantages than physical gold. They are easy to sell because they are held in electronic form. Also, there is no need to invest in locker and it track gold price. Hence, you can check Best gold mutual funds in India.
What is Gold ETF?
Exchanged traded funds or ETFs are different from mutual fund. And it is advisable to invest in an ETF over an index based mutual fund. If you want to know why ETF is advisable over index based mutual fund. Hence, check out ETF vs. Mutual funds comparison. Check Best ELSS mutual fund schemes & risk statistics
Exchange Traded Fund performances do not vary too much to gold price. You do not have risk of physical gold in lockers. You can buy and sell Gold ETF stocks like other ETF’s on NSE and BSE exchanges. Hence, you can keep the shares of company in your Demat account online.
How to choose Best Gold ETFs?
To choose best Gold ETFs in India there are some parameters to find out. Such as Fund track record, liquidity and tracking error.
Fund Track Record
It is important to know past performance of fund house in Exchange Traded Funds. If you are looking for best Gold ETFs. It is advisable to choose fund which has track record of at least three years.
Exchange Traded Funds need to be checked based on trading activity. Most of ETFs trade based on changes in benchmark. But some ETFs trade barely. Therefore trading activity actually confirms liquidity of an ETF. Hence, high trading activity gives higher liquidity.
ETFs are expected to track index closely. But some ETF do not track it closely. You must prefer an ETF with minimum tracking error. Hence, you can see Investing in ELSS Funds be Beneficial Using SIP
How to invest in gold ETF?
To invest in Gold ETF, you need to have Demat account and an online trading account. To open an account, you must require PAN Card, an address proof and an identity proof. After account is ready, you can choose Gold ETF and place an order. Once trade is executed and confirm is sent in your account. And small fee from fund house and broker is charge when you buys or sells these Gold ETFs.
Best Gold ETFs in India
Gold Exchange Traded Funds (ETFs) are popular mutual fund. So returns are like gold. However, gold prices have slumped this year and with it gold ETFs. You need to be little cautions before investing. Also, now you are getting some of these ETFs at bottom prices.
KOTAKGOLD and GOLDBEES are most actively traded Gold ETF. Last year, gold gave 9 per cent returns in international markets. So this is good time to invest in SIP in gold ETF. So Gold-ETF means it has Gold but also has some cash and cash equivalent as well. Here find below top performing Gold ETF’s fund in India.
SBI Gold ETF
SBI Gold ETF is one of top gold ETFs in India. Large size gold ETF has asset under management to Rs 980 crores. Moreover, fund has slightly lower returns of 9.5 per cent in last one year. This gold ETF is well managed and has potential to generate returns. It has excellent hedge against price rises in liquid. Hence, go for it with long term view in mind.
IDBI Gold ETF
IDBI Gold Exchange Traded Fund is an open ended gold exchange traded scheme. It has given good returns in last one year. And it tracks price of gold in domestic market. Each unit of IDBI Gold ETF is backed by 24 carat gold of 99.5% purity and will be held by custodian.
Hence, this Fund has given returns of 9 per cent last one year. It is important to remember that there is capital gains tax that is applicable on sale of gold. As mention earlier, gold prices have potential to gain. Additional, advantage for buyers is that they are getting ETF at lower prices.
Kotak Gold ETF
Kotak Gold ETF is an open-ended Exchange Traded Fund. But it invests in physical gold. And also track domestic spot price of gold as closely as possible. Thus it provides an option to invest in gold without taking physical delivery of gold. Each unit of KGETF is approximately equal to 1 gram of gold.
However, Kotak Gold ETF has given 9.4 per cent returns and has asset under management of Rs 800 crores. If you are looking to buy you need to track prices of gold.
Axis Gold ETFs
Axis Gold ETFs will allow gold purity of 99.5% at current market prices without premium charges. An excellent hedge against inflation. The fund has make return of 18 per cent in last one year. Again, this fund has recommended. Buy ETF if you believe that gold prices will rally in next year.
UTI Gold ETF
Another UTI Gold ETF is that has good returns. This fund has given 9.8 per cent returns. And this fund is only slightly lower then returns given by IDBI Gold ETF. If you are long term investor this maybe good bet.
GS Gold BES
GS Gold BES is called Goldman Sach ETF. And this fund has given highest returns in last one year. But fund has given almost 17 per cent returns in last year. Because, it is biggest gold ETFs in country. Since, two year fund has given 7.5 per cent returns.
Reliance Gold Shares ETF
Reliance Gold Shares ETF is gold ETF that has given an outstanding performance in last one year. It has return almost 16 per cent. Generally, there is no variation that is seen in returns of various Gold ETFs. Since, they track gold prices.
Finally, see best mutli cap funds. For more details see how to identify best equity mutual funds to invest. However, see list of gold ETF schemes. Hence, you can see Top 10 gold mutual funds. You can also check performance of Gold ETF funds