Bet on these top performing gold ETFs to bolster your mutual fund journey
Last Updated : July 29, 2016, 10:05 a.m.
Whenever we want to deploy our hard earned money, financial instruments such as fixed deposit and mutual fund come to the fore. While fixed deposit offers you interest at the rate of 7%-10% per annum, mutual fund on the other hand can provide you a return of 18%-20% or more. As mutual funds invest in various securities such as stock, bonds and money market instruments to diversify the risk, investors get compensated for the loss in one security with the gain in another. There are various types of mutual funds and among them are the exchange traded funds (ETFs). These funds are listed and traded on the exchanges like stocks. Investors be it retail or institutional like to invest in this type of instrument. These funds aim to provide you the real-time experience of investing in different stock exchanges be it national or international at a much lower cost than other types of investment. ETF represents the composition of indices like BSE Sensex or S&P CNX Nifty. Among the ETFs, it’s the gold ETF that makes the investors go gaga over it. Gold ETFs have provided an average return of 15% in the last one year with 3-month return estimated to be around 6.60%-8.30%. Here’s the list of top performing gold ETFs that you should look to invest in.
UTI Gold Exchange Traded Fund
The fund aims to provide returns to the investors by tracking the day-to-day performance of the gold, a precious yellow metal. You can buy or sell the units in a demat form like the way it happens in the case of stocks on the exchanges. You can do the same based on the day’s Net Asset Value (NAV). The NAV is calculated and declared each day. The good thing with investing in this scheme is that you can buy or sell the units without paying any entry or exit loads.
Price and performance of fund
Current Price- Rs 2,802.60
Asset Size- Rs 502.40 cr
NAV- Rs 2,945 per unit
1-week return- 1.1%
1-month return- 0.9%
3-month return- 6%
6-month return-18.5%
1-year return- 27.5%
2-year return- 6.2%
3-year return- 4.2%
IDBI Gold Exchange Traded Fund
This fund keeps an eye on tracking the price of gold in the domestic market . A minimum 95% corpus of the fund is invested in the physical gold with a view to match the prices of the yellow metal in domestic market by reducing the tracking error between the scheme’s NAV and the price of gold. You can invest in the scheme in a demat form. You are free from paying any entry and exit loads on your transaction.
Price and performance of fund
Current Price- Rs 2,894
Asset Size- Rs 101.29 cr
NAV- Rs 3,076.21 per unit
1-week return- 1.1%
1-month return- 0.9%
3-month return-5.9%
6-month return- 18.5%
1-year return- 27.4%
2-year return- 6.4%
3-year return- 4.3%
Birla Sun Life Gold ETF
The fund invests in physical gold of 99.5% purity and aims to provide returns at par with the performance of the yellow metal subject to tracking errors. The fund is listed on both Bombay Stock Exchange (BSE) Sensex and the National Stock Exchange (NSE) Nifty. Creation unit of the scheme refers to the quantity of units that you can exchange against a pre-defined quantity and purity of the physical gold, which is known as Portfolio Deposit and Cash Component. Portfolio Deposit includes physical gold of pre-defined quantity and purity as declared by the fund house, while Cash Component is the difference between applicable NAV of a creation unit size and the market value of the portfolio deposit. You can buy or redeem the units without paying any entry and exit loads.
Price and performance of fund
Current Price- Rs 2,921.70
Asset Size- Rs 85.01 cr
NAV- Rs 3,073.62 per unit
1-week return- 1.1%
1-month return- 0.9%
3-month return- 6%
6-month return- 18.2%
1-year return- 27.4%
2-year return- 6.3%
3-year return- 4.2%
GS Gold BeES
Goldman Sachs Gold Exchange Traded Scheme (GS Gold BeES) is an open-ended fund listed on the NSE. The objective of the fund is to offer returns that closely correspond to the returns provided by the physical gold in the domestic market. There are no entry and exit loads applicable as per the scheme.
Price and performance of fund
Current Price- Rs 2,792
Asset Size- Rs 1,804.51 cr
NAV- Rs 2,940.53 per unit
1-week return- 1.1%
1-month return- 0.9%
3-month return- 6%
6-month return- 18.4%
1-year return- 27.4%
2-year return- 6.5%
3-year return- 4.3%
SBI-Gold ETF
The fund invests in the physical gold and keeps a track of the price of the precious metal. You can buy or sell the units of the scheme through the NSE. Fund managers of the scheme strive to generate returns that closely match the returns offered by the gold. You do not require to open a demat account to run the scheme. The fund ensures the investment made in the gold is of highest purity.
Price and performance of fund
Current Price- Rs 2,857.50
Asset Size- Rs 1,011.24 cr
NAV- Rs 3,014.63 per unit
1-week return- 1.1%
1-month return- 0.9%
3-month return- 5.9%
6-month return- 18.3%
1-year return- 27.3%
2-year return- 6.3%
3-year return- 4.3%