Introduction
Gold ETFs offer investors exposure to the Indian gold market. They are superb options for investment for investors looking to beat inflation in the long-term prospects.
Additionally, gold as an asset is less volatile when compared to equities.
The first Gold ETF was launched in India in 2007.
As of now, the National Stock Exchange of India (NSE) lists 13 Gold ETFs, which are traded every day and are managed professionally by AMC (asset management companies).
Gold ETFs can be bought online and placed in your Demat account. The AMC is responsible for trading them on a stock exchange. That means you can enter or exit whenever required. Let’s discuss Best Gold ETF in India in 2023.
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How to Choose the Best Gold ETF in India?
While selecting a Gold ETF, is a major key to tracking the historical performance of the gold ETF house.
The longer the path record, the better it is. gold funds are heavily traded on NSE,
Hence a higher trading activity translates to greater liquidity.
Therefore, gold funds with higher trading activity should be given preference.
If a company has a higher AUM, it’s a perfect sign as it reflects the size of the market value and also the number of investors. Such a key reflects the reliability of the gold fund house.
You can look at the tracking error and the trading volume. Opt for Gold ETFs with higher trading volumes and lower tracking errors.
There is no lock-in of ETFs and buying, selling can happen during trading time. Hence, avoid partial withdrawals or early exits, and always link your investments to a long-term objective.
One needs to buy a minimum of 1 unit that is similar to 1 gram of gold to start trading in Gold ETFs.
A Demat a/c is a must in order to invest in ETFs.
For taxation reasons, these ETFs are considered to be nonequity investments. Therefore, taxation rules are equivalent to debt funds.
Also Read Gold investment comparison: with all form | Returns comparison
Best Gold ETF in India
Here are the top 5 best-performing gold ETFs to look out for in 2023.
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1. Nippon India ETF Gold BEeS
| Launch Date | 08-Mar-2007 |
| Net Assets (Cr) | Rs. 5285.33/- |
| Max Entry Load (%) | 0.00 |
| Max Exit Load (%) | 0.00 |
| Minimum Investment | Rs. 10000/- |
| Risk | Moderately High |
Returns
| 3 Year (%) | 17.79 |
| 5 Year (%) | 12.95 |
| Since Inception (%) | 11.19 |
2. HDFC Gold ETF
| Launch Date | 13-Aug-2010 |
| Net Assets (Cr) | Rs. 2003.78/- |
| Max Entry Load (%) | 0.00 |
| Max Exit Load (%) | 0.00 |
| Minimum Investment | Rs. 5000/- |
| Risk | Moderately High |
Returns
| 3 Year (%) | 17.56 |
| 5 Year (%) | 13.00 |
| Since Inception (%) | 9.04 |
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3. ICICI Pru Gold ETF
| Launch Date | 24-Aug-2010 |
| Net Assets (Cr) | Rs. 1865.95/- |
| Max Entry Load (%) | 0.00 |
| Max Exit Load (%) | 0.00 |
| Minimum Investment | Rs. 5000/- |
| Risk | Moderately High |
Returns
| 3 Year (%) | 17.62 |
| 5 Year (%) | 12.67 |
| Since Inception (%) | 8.52 |
4. SBI-ETF Gold
| Launch Date | 18-May-2009 |
| Net Assets (Cr) | Rs. 1820.57/- |
| Max Entry Load (%) | 0.00 |
| Max Exit Load (%) | 0.00 |
| Minimum Investment | Rs. 5000/- |
| Risk | Moderately High |
Returns
| 3 Year (%) | 17.80 |
| 5 Year (%) | 12.88 |
| Since Inception (%) | 10.00 |
5. Kotak Gold ETF
| Launch Date | 24-Aug-2010 |
| Net Assets (Cr) | Rs. 1865.95/- |
| Max Entry Load (%) | 0.00 |
| Max Exit Load (%) | 0.00 |
| Minimum Investment | Rs. 5000/- |
| Risk | Moderately High |
Returns
| 3 Year (%) | 17.88 |
| 5 Year (%) | 12.92 |
| Since Inception (%) | 12.46 |
Source – Moneycontrol
The Bottom Line
returns and risk factors are two sides of the coin named investing.
The investment option involves the risk of the amount invested by the investor.
Hence, it is plain sense to take a careful choice after all due assiduity and advice from experts.
Selection of the Best Gold fund is the first step in the process of investing.
Factoring in the risk-taking capacity without compromising significantly on the returns is key point for each investor.