Top 7 Gold ETFs & Mutual Funds With Best Returns in 3 Years: Rs 3.33 lakh one-time investment in No. 1 scheme has ballooned to Rs 5.66 lakh
Top 7 Gold ETFs and Mutual Funds: Gold exchange-traded funds (ETFs) are funds that can be traded in a share market, while gold mutual funds invest in gold through gold ETFs or equity. Both can give similar returns in the long run.
Top 7 Gold ETFs and Mutual Funds: Investment in gold in electronic form has gathered steam in the last few years. There are many investors who don't want to have gold in its physical form in their home or bank lockers, but they want to benefit from the rising price of gold. Such investors prefer investment in gold through gold exchange-traded funds (ETFs) or gold mutual funds. Both gold-related assets cash in on the price appreciation of the yellow metal. The returns of both are nearly the same in the long run. But what is the difference between them? Why, despite being mutual funds, have they been categorised differently? Which are the top 7 gold ETFs and mutual funds that have given the highest annualised return (CAGR) in 3 years? And which of them has given the highest return on a Rs 3,33,333 investment in 3 years? Know the answers to these questions here-
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What are gold ETFs?
Gold ETFs track the price of 99.5 per cent pure gold. One gold ETF unit is equal to 1 gramme of gold. It invests in gold bars and coins. As the gold price increases or decreases, the rate of a gold ETF follows it. Since it is an ETF, investors need to have a demat account to trade it. Another aspect of why it is different from physical gold is that its price remains the same throughout the globe. On the other hand, the price of physical gold may change from city to city. Since they track the price of gold, gold ETFs' performance can also be negative in the short term, but they are suitable for investors with a long-term horizon.
What are gold mutual funds?
Gold mutual funds don't invest directly in physical gold. Rather, they invest in stocks of companies involved in the processing, mining, fabrication, and distribution of gold. Their performance depends on the movement of stock prices of these companies. They also invest in gold ETFs.
Top 7 gold ETFs and mutual funds in 3 years
The ETF has given 19.30 per cent annualised return in the 3-year period.
It has assets under management (AUM) of Rs 114 crore, while its net asset value (NAV) is Rs 25.5.
Benchmarked against the domestic price of gold, the ETF has given 7.61 per cent annualised return since its debut in January 2013.
Invesco India Gold ETF FoF Direct-Growth
At an expense ratio of 0.1 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment.
A Rs 3,33,333 one-time investment in the ETF has converted into Rs 5.66 lakh in 3 years.
SBI Gold Direct Plan-Growth
The ETF has given 18.89 per cent annualised return in the 3-year time frame.
It has AUM of Rs 2,920 crore, while its NAV is Rs 26.49.
Benchmarked against the domestic price of gold, the fund has given a 7.72 per cent annualised return since its inception in January 2013.
SBI Gold Direct Plan-Growth
With an expense ratio of 0.1 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment.
A Rs 3,33,333 investment in the ETF has jumped to Rs 5.6 lakh in the 3-year period.
Axis Gold Direct Plan-Growth
The fund has given 18.88 per cent annualised return in 3 years.
It has an asset base of Rs 794 crore, while its unit price is Rs 27.55.
Benchmarked against the domestic price of gold, the fund has given 7.54 per cent annualised return since its launch in January 2013.
Axis Gold Direct Plan-Growth
At an expense ratio of 0.17 per cent, the ETF has Rs 105 as the minimum SIP and lump sum investment each.
A Rs 3,33,333 investment in the ETF has grown into Rs 5.6 lakh in the 3-year time frame.
Quantum Gold Savings Fund Direct-Growth
The fund has given 18.85 per cent annualised return in the 3-year time period.
It has a fund size of Rs 161 crore, while its unit price is Rs 33.14.
Benchmarked against the domestic price of gold, the fund has given 8.96 per cent annualised return since its starting in April 2011.
Quantum Gold Savings Fund Direct-Growth
With an expense ratio of 0.03 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment.
A Rs 3,33,333 investment in the fund has swelled to Rs 18.6 lakh in 3 years.
HDFC Gold ETF Fund of Fund Direct Plan-Growth
The ETF has given 18.78 per cent annualised return in the 3-year time frame.
Its AUM is Rs 3,060 crore, while its NAV is Rs 27.16.
Benchmarked against the domestic price of gold, the fund has given 7.69 per cent annualised return since its beginning in January 2013.
HDFC Gold ETF Fund of Fund Direct Plan-Growth
At an expense ratio of 0.18 per cent, the fund has Rs 105 as the minimum SIP and lump sum investment each.
A Rs 3,33,333 investment in the ETF has sprung to Rs 5.59 lakh in the 3-year period.
ICICI Prudential Regular Gold Savings (FOF) Direct-Growth
The fund has given 18.69 per cent annualised return in 3 years.
It has a fund size of Rs 1,576 crore, while its unit price is Rs 27.75.
Benchmarked against the domestic price of gold, the fund has given 7.73 per cent annualised return since its debut in January 2013.
ICICI Prudential Regular Gold Savings (FOF) Direct-Growth
With an expense ratio of 0.09 per cent, the international fund has Rs 105 as the minimum SIP and lump sum investment each.
A Rs 3,33,333 investment in the fund has jumped to Rs 5.57 lakh in the 3-year time frame.
Aditya Birla Sun Life Gold Fund Direct-Growth
The ETF has given 18.60 per cent annualised SIP return in the 3-year period.
It has an asset base of Rs 472 crore, while its unit price is Rs 25.99.
Benchmarked against the domestic price of gold, the fund has given 7.65 per cent annualised return since its inception in January 2013.
Aditya Birla Sun Life Gold Fund Direct-Growth
At an expense ratio of 0.2 per cent, the fund has Rs 105 as the minimum SIP and lump sum investment each.
A Rs 3,33,333 investment in the ETF has swelled to Rs 5.56 lakh in 3 years.