In recent years, the popularity of Gold ETFs (Exchange Traded Funds) has increased among investors. Investors are more inclined to invest in gold ETFs because they track the price of gold and eliminate the need for stockpiling. But when it comes to investing, investors are often confused about choosing the best gold ETFs.So in this article, we will talk about the Top 5 Gold ETFs in India.
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| Top 5 Gold ETFs in India |
There are a few things you have to keep in mind when choosing a Mutual Fund or an ETF, or in our case, a Gold ETF.
How to Choose the Best Gold ETF?
Gold is generally used as a hedging instrument by investors, but a lot of people think that just analyzing the return is enough to judge a Mutual Fund or an ETF. But that is not the ‘only’ parameter you should look at.
Parameters to Check Before Investing in Gold ETFs
- The Fund House -An Established, renowned fund house is always recommended over any new ones. Establishing trust among the customers in the financial industry is hard to come by, and experience plays a very big role in this industry.
- Age of the Gold ETF – Check the Inception Date of the ETF.
An ETF with a long history means you have more data and numbers to judge the performance.
ETFs with atleast 3 to 5 Years of historical data is recommended. - AUM of the ETF – AUM or Assets Under Management is one of the most important factors when choosing a Mutual Fund or an ETF. Or, in our case, a Gold ETF.
High AUM value indicates more people have trusted the fund or the ETF, and have poured in their hard-earned money. - Expense Ratio – Expense Ratio is basically the fee you pay to the Fund House and the Fund Manager to manage the ETF.
Lower the Expense Ratio, the better for you.
Generally, passively managed ETFs always have a lower-Expense Ratio compared to actively managed Mutual Funds or ETFs. - Tracking Difference – When you are selecting an ETF that passively tracks a particular index or a particular asset class, in our case, Gold – You should always check how closely the ETF is tracking the index or the asset class.
Tracking Difference is common among passively managed funds but, your chosen fund or ETF should have the least Tracking Difference among its peers.
Let’s understand Tracking Difference using an example –
Let us say that the Gold Index has moved up by 1.35% on a particular month. And the Gold ETF you are thinking of investing in has moved up by 1.26% on that same particular month. Then -0.09% (1.26 – 1.35) is the Tracking Difference of the ETF.
Just keep in mind that the ETF you choose should have the least Tracking Difference among others.
Another thing to note is, Tracking Difference and Tracking Error is not the same thing. Tracking Error is a far more complicated jargon which 99.99% of the retail investors don’t need to bang their head on.
But if you want to understand the concept of Tracking Error, ET Money has a detailed video about the issue on Youtube.
These are just a few parameters among many which you should analyze before investing in a Gold ETF. But here is one of our articles that will help you judge a Mutual Fund or an ETF on a fundamental basis.
5 Best Gold ETFs in India in 2021
Some of the best performing gold ETFs having AUM/Net Assets > 25 Crore are:
| Fund | NAV | Net Assets (Cr) | 3 MO (%) | 6 MO (%) | 1 YR (%) | 3 YR (%) | 5 YR (%) | 2021 (%) |
|---|---|---|---|---|---|---|---|---|
| Invesco India Gold Fund Growth | ₹15.1941 ↓ -0.51 | ₹48 | 6.2 | 6.7 | 7.8 | 13.7 | 10.1 | -5.5 |
| Aditya Birla Sun Life Gold Fund Growth | ₹15.4752 ↓ -0.30 | ₹251 | 5.2 | 5.9 | 7.5 | 13.2 | 9.7 | -5 |
| Nippon India Gold Savings Fund Growth | ₹20.3824 ↓ -0.48 | ₹1,429 | 5.5 | 6 | 7.7 | 13.4 | 9.7 | -5.5 |
| SBI Gold Fund Growth | ₹15.4072 ↓ -0.37 | ₹1,105 | 5 | 5.8 | 7.2 | 13.7 | 10.2 | -5.7 |
| HDFC Gold Fund Growth | ₹15.9253 ↓ -0.27 | ₹1,278 | 5.8 | 6.3 | 7.8 | 13.7 | 10.2 | -5.5 |
1. Invesco India Gold Fund
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 CAGR/Annualized return of 4.2% since its launch. Return for 2021 was -5.5%, 2020 was 27.2% and 2019 was 21.4% .
Below is the key information for Invesco India Gold Fund
Invesco India Gold Fund Growth
| Launch Date | 5 Dec 11 |
| NAV (25 Feb 22) | ₹15.1941 ↓ -0.51 (-3.23 %) |
| Net Assets (Cr) | ₹48 on 31 Jan 22 |
| Category | Gold - Gold |
| AMC | Invesco Asset Management (India) Private Ltd |
| Rating | ☆☆☆ |
| Risk | Moderately High |
| Expense Ratio | 0.43 |
| Sharpe Ratio | -0.6 |
| 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 Jan 17 | ₹10,000 |
| 31 Jan 18 | ₹9,975 |
| 31 Jan 19 | ₹11,198 |
| 31 Jan 20 | ₹13,478 |
| 31 Jan 21 | ₹16,184 |
| 31 Jan 22 | ₹15,254 |
Returns for Invesco India Gold Fund
Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Feb 22
| Duration | Returns |
|---|---|
| 1 Month | 4.5% |
| 3 Month | 6.2% |
| 6 Month | 6.7% |
| 1 Year | 7.8% |
| 3 Year | 13.7% |
| 5 Year | 10.1% |
| 10 Year | |
| 15 Year | |
| Since launch | 4.2% |
Historical performance (Yearly) on absolute basis
| Year | Returns |
|---|---|
| 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% |
| 2012 | 11.3% |
2. Aditya Birla Sun Life Gold Fund
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 CAGR/Annualized return of 4.5% since its launch. Return for 2021 was -5% , 2020 was 26% and 2019 was 21.3% .
Below is the key information for Aditya Birla Sun Life Gold Fund
Aditya Birla Sun Life Gold Fund Growth
| Launch Date | 20 Mar 12 |
| NAV (25 Feb 22) | ₹15.4752 ↓ -0.30 (-1.92 %) |
| Net Assets (Cr) | ₹251 on 31 Jan 22 |
| Category | Gold - Gold |
| AMC | Birla Sun Life Asset Management Co Ltd |
| Rating | ☆☆☆ |
| Risk | Moderately High |
| Expense Ratio | 0.49 |
| Sharpe Ratio | -0.5 |
| 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 Jan 17 | ₹10,000 |
| 31 Jan 18 | ₹10,023 |
| 31 Jan 19 | ₹10,872 |
| 31 Jan 20 | ₹13,592 |
| 31 Jan 21 | ₹15,943 |
| 31 Jan 22 | ₹15,308 |
Returns for Aditya Birla Sun Life Gold Fund
Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Feb 22
| Duration | Returns |
|---|---|
| 1 Month | 3.8% |
| 3 Month | 5.2% |
| 6 Month | 5.9% |
| 1 Year | 7.5% |
| 3 Year | 13.2% |
| 5 Year | 9.7% |
| 10 Year | |
| 15 Year | |
| Since launch | 4.5% |
Historical performance (Yearly) on absolute basis
| Year | Returns |
|---|---|
| 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% |
| 2012 |
3. Nippon India Gold Savings Fund
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 CAGR/Annualized return of 6.7% since its launch. Return for 2021 was -5.5% , 2020 was 26.6% and 2019 was 22.5% .
Below is the key information for Nippon India Gold Savings Fund
Nippon India Gold Savings Fund Growth
| Launch Date | 7 Mar 11 |
| NAV (25 Feb 22) | ₹20.3824 ↓ -0.48 (-2.29 %) |
| Net Assets (Cr) | ₹1,429 on 31 Jan 22 |
| Category | Gold - Gold |
| AMC | Nippon Life Asset Management Ltd. |
| Rating | ☆☆ |
| Risk | Moderately High |
| Expense Ratio | 0.39 |
| Sharpe Ratio | -0.43 |
| 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 Jan 17 | ₹10,000 |
| 31 Jan 18 | ₹10,231 |
| 31 Jan 19 | ₹11,011 |
| 31 Jan 20 | ₹13,410 |
| 31 Jan 21 | ₹15,901 |
| 31 Jan 22 | ₹15,321 |
Returns for Nippon India Gold Savings Fund
Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Feb 22
| Duration | Returns |
|---|---|
| 1 Month | 3.6% |
| 3 Month | 5.5% |
| 6 Month | 6% |
| 1 Year | 7.7% |
| 3 Year | 13.4% |
| 5 Year | 9.7% |
| 10 Year | |
| 15 Year | |
| Since launch | 6.7% |
Historical performance (Yearly) on absolute basis
| Year | Returns |
|---|---|
| 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% |
| 2012 | 11.2% |
4. SBI Gold Fund
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 CAGR/Annualized return of 4.2% since its launch. Return for 2021 was -5.7% , 2020 was 27.4% and 2019 was 22.8% .
Below is the key information for SBI Gold Fund
SBI Gold Fund Growth
| Launch Date | 12 Sep 11 |
| NAV (25 Feb 22) | ₹15.4072 ↓ -0.37 (-2.34 %) |
| Net Assets (Cr) | ₹1,105 on 31 Jan 22 |
| Category | Gold - Gold |
| AMC | SBI Funds Management Private Limited |
| Rating | ☆☆ |
| Risk | Moderately High |
| Expense Ratio | 0.4 |
| Sharpe Ratio | -0.47 |
| 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 Jan 17 | ₹10,000 |
| 31 Jan 18 | ₹10,280 |
| 31 Jan 19 | ₹11,098 |
| 31 Jan 20 | ₹13,597 |
| 31 Jan 21 | ₹16,121 |
| 31 Jan 22 | ₹15,523 |
Returns for SBI Gold Fund
Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Feb 22
| Duration | Returns |
|---|---|
| 1 Month | 3.4% |
| 3 Month | 5% |
| 6 Month | 5.8% |
| 1 Year | 7.2% |
| 3 Year | 13.7% |
| 5 Year | 10.2% |
| 10 Year | |
| 15 Year | |
| Since launch | 4.2% |
Historical performance (Yearly) on absolute basis
| Year | Returns |
|---|---|
| 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% |
| 2012 | 10.9% |
5. HDFC Gold Fund
To seek capital appreciation by investing in units of HDFC Gold Exchange Traded Fund (HGETF).
HDFC Gold Fund is a Gold - Gold fund was launched on 24 Oct 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 4.6% since its launch. Return for 2021 was -5.5% , 2020 was 27.5% and 2019 was 21.7% .
Below is the key information for HDFC Gold Fund
HDFC Gold Fund Growth
| Launch Date | 24 Oct 11 |
| NAV (25 Feb 22) | ₹15.9253 ↓ -0.27 (-1.69 %) |
| Net Assets (Cr) | ₹1,278 on 31 Jan 22 |
| Category | Gold - Gold |
| AMC | HDFC Asset Management Company Limited |
| Rating | ☆ |
| Risk | Moderately High |
| Expense Ratio | 0.57 |
| Sharpe Ratio | -0.47 |
| 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 Jan 17 | ₹10,000 |
| 31 Jan 18 | ₹10,182 |
| 31 Jan 19 | ₹11,031 |
| 31 Jan 20 | ₹13,377 |
| 31 Jan 21 | ₹15,971 |
| 31 Jan 22 | ₹15,398 |
Returns for HDFC Gold Fund
Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Feb 22
| Duration | Returns |
|---|---|
| 1 Month | 3.9% |
| 3 Month | 5.8% |
| 6 Month | 6.3% |
| 1 Year | 7.8% |
| 3 Year | 13.7% |
| 5 Year | 10.2% |
| 10 Year | |
| 15 Year | |
| Since launch | 4.6% |
Historical performance (Yearly) on absolute basis
| Year | Returns |
|---|---|
| 2021 | -5.5% |
| 2020 | 27.5% |
| 2019 | 21.7% |
| 2018 | 6.6% |
| 2017 | 2.8% |
| 2016 | 10.1% |
| 2015 | -7.3% |
| 2014 | -9.8% |
| 2013 | -7.2% |
| 2012 | 12% |