Best Gold ETFs in India 2022

25 August 2022

A Gold ETF or Gold ETF investment is a mutual fund that invests in assets like Gold and is based on commodities. Similar to individual stocks, these Exchange-Traded Funds function and are traded on the stock exchange.

Gold ETFs (Exchange Traded Funds) have become increasingly popular among investors in recent years. Since Gold ETFs track gold prices and do not require storage, investors are more likely to do so. But when it comes to investing, investors frequently struggle to select the top Gold ETFs.

We'll be taking a look at some of the best gold ETF funds for 2022 in this blog.

Best Gold ETFs in India

S.No.

Best Gold ETF in India 2022

1.  

HDFC Gold ETF

2.  

SBI Gold ETF

3.  

IDBI Gold ETF

4.  

Axis Gold ETF

5.  

Kotak Gold ETF

6.  

Aditya Birla Sun Life Gold ETF

7.  

Nippon India Gold ETF

8.  

Invesco India Gold ETF

9.  

Quantum Gold ETF

10.   

UTI Gold ETF

Factors to Remember While Investing in Gold ETFs

Here is some advice you might find helpful if you want to invest in Gold Exchange-Traded Funds:

  1. Given that long-term returns on gold are frequently as low as 10% annually, gold is better suited as a short- to medium-term investment.

  2. While choosing a Gold ETF or Fund Manager, do not opt for one solely depending on the low fees. Instead, examine the fund's performance in recent years to understand how effectively the Fund Managers manage the accounts.

  3. If you intend to invest a lot of money or engage in frequent trading, Gold ETFs will be more financially viable than other gold-based investments.

  4. Avoid making large or sustained investments in gold. Instead, it is a good idea to allocate 5–10% of your investment portfolio to gold ETFs. Additionally, this will keep your portfolio solid and your returns consistent.

  5. As brokerage or commission fees for gold ETFs range from 0.5% to 1%, looking around the ETF market for a stockbroker or fund manager with reasonable fees is advisable.

  6. Watch your account and the trades being executed for you if a fund manager monitors your Gold ETF. You can raise the effectiveness of your portfolio with the routine analysis.

  7. If you are concerned about what will happen to your money, consider that SEBI regulates Gold ETFs and that each unit is supported by actual gold.

    Typically, the Bank of Nova Scotia serves as the custodian for the physical gold held by gold funds. Therefore, you must be certain that an equivalent amount of physical gold backs each unit of the gold ETF.

  8. Before beginning any transactions, keep an eye on the price trends for gold. You might want to purchase gold ETFs at bargain prices and then sell them as the price rises, just like with stocks.

Performance of the Best Gold ETFs in India

If you are wondering which gold ETF is best to invest in India, here is a performance analysis of some of the best gold ETFs-

1) HDFC Gold ETF

The scheme seeks to generate returns that are in line with the performance of gold, subject to tracking errors. As a result, the HDFC Gold ETF is the best gold ETF in India.

2) SBI Gold ETF

The scheme seeks to generate returns that correspond to the returns provided by the price of gold through investment in physical Gold. However, the scheme's performance may differ from the underlying asset due to tracking errors.

3) IDBI Gold ETF

The fund aims to provide gold ETF returns that closely correspond to the return provided by the price of gold through investment in physical gold in the domestic market.

The reason for the performance variance of the scheme from that of the domestic price of gold may be due to expense and other related factors. The IDBI Gold ETF is also considered the top Gold ETF in India.

4) Axis Gold ETF

The scheme seeks to generate returns that align with gold's performance. The Axis Gold ETF is another best gold ETF of 2022.

5) Kotak Gold ETF

The fund aims to provide returns that closely correspond to the return provided by the price of gold through investment in physical gold in the domestic market. The reason for the performance variance of the scheme from that of the domestic price of gold may be due to expense and other related factors.

6) Aditya Birla Sun Life Gold ETF

The fund aims to provide returns that closely correspond to the return provided by the price of gold through investment in physical gold. However, the scheme's performance may differ from that of the domestic price of gold due to expense and other related factors.

7) Nippon India Gold ETF

This fund is another best gold ETF India fund that aims to provide returns that closely correspond to the return provided by the price of gold through investment in physical gold. The reason for the performance variance of the scheme from that of the domestic price of gold may be due to expense and other related factors.

8) Invesco India Gold ETF

The fund aims to provide returns that closely correspond to the return provided by the price of gold through investment in physical gold.

9) Quantum Gold ETF

The fund aims to provide returns that closely correspond to the return provided by the price of gold through investment in physical gold. However, the scheme's performance may differ from that of the domestic price of gold due to expense and other related factors.

10) UTI Gold ETF

The investment objective of the fund is to endeavour to provide returns that closely track gold performance and yield before expenses. Accordingly, the scheme's performance may differ from that of the underlying asset due to tracking errors.

Conclusion

An Exchange-Traded Fund (ETF) for Gold is a commodity ETF with Gold as its sole principal asset. Exchange-Traded Funds behave and trade as individual stocks do on an exchange. We hope this blog helped you learn more about the best Gold Exchange-Traded Funds in India in 2022.

To read the RA disclaimer, please click here
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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