Top 10 Gold ETFs in India

Gold Exchange Traded Funds (ETFs) are being traded in India since March 2007. Benchmark Asset Management Company Private Ltd. was the first to put in the proposal for gold ETF with the Securities and Exchange Board of India (SEBI). However, that is no longer offered on the exchange.

Gold ETF schemes in India

In the 9 years since the gold ETFs began trading in Indian stock exchanges, many financial firms have begun offering gold ETF schemes. The following 13 gold ETF schemes are available in India:

  1. Birla Sun Life Gold ETF
  2. Goldman Sachs Gold ETF
  3. Religare Invesco Gold ETF
  4. Quantum Gold Fund
  5. SBI Gold ETF
  6. IDBI Gold ETF
  7. R*Shares Gold ETF
  8. Axis Gold ETF
  9. Kotak Gold ETF
  10. ICICI Prudential Gold ETF
  11. UTI Gold ETF
  12. HDFC Gold ETF
  13. Can Gold ETF

Choosing the right ETF scheme

The profitability of Gold Exchange Traded Funds schemes can be determined by looking at the investment profiles of the scheme. The main factors to consider are:

  • Assets under Management (AUM) - AUM is defined as the market value of all the financial assets that a company manages for its investors. If a company has a high AUM value, it reflects on the high number of clients and portfolios that it handles.
  • Net Asset Value (NAV) - NAV is the value of the company's assets except the value of its liabilities. It is also the ETF's per-share value. NAV is arrived at by dividing the total value of all the securities in a firm's portfolio, except the liabilities, by the number of outstanding fund shares.
  • Returns - The profits or income made by an ETF scheme or portfolio is known as returns.

Top 10 gold ETFs in India

It may be difficult to determine the best gold rates, gold ETF scheme in India because of varying risks. However, looking at the profiles of various ETF schemes on the basis of AUM, NAV and returns, one can arrive at deciding the scheme most profitable for you to invest in. With gold ETFs, short-term returns are higher than long-term returns.

Below are some of the best gold ETF products and their data to help you decide where to put your money in.

(All latest derived data from company websites)

  1. Goldman Sachs Gold BEes

    The best Gold Exchange Traded Fund in India according to AUM figures is the Goldman Sachs Gold BEes. At the end of December 2015, Goldman Sachs Gold BEes had a declared AUM figure of Rs. 1,636.65 crore. The NAV of this scheme stood at Rs. 2,726.76 per unit on February 11, 2016.

    Its average returns on the gold ETF schemes are as below:

    Duration

    Returns in %

    1 month

    13.5

    3 month

    15.5

    6 month

    14.7

    1 year

    7.5

    2 year

    1.2

    3 year

    -1.7

    5 year

    6.8

  2. R*Shares (Reliance) Gold ETF

    Reliance Mutual Fund’s R*Shares Gold ETF has the next best AUM of Rs. 1,304.84 crore, at the end of December 2015. The NAV of this scheme on February 11, 2016 was Rs. 2,652.32 per unit. The product’s returns on the scheme are as below:

    Duration

    Returns in %

    1 month

    13.6

    3 month

    15

    6 month

    15

    1 year

    7.2

    2 year

    -0.7

    3 year

    -1.9

    5 year

    6.8

  3. SBI Gold ETF

    State Bank of India Mutual Fund's SBI ETF Gold scheme registered an AUM of Rs. 917.58 crore in December 2015. Its NAV was Rs. 2,797.71 per unit on February 11, 2016. Returns on this scheme are given below:

    Duration

    Returns in %

    1 month

    13.5

    3 month

    15.5

    6 month

    15

    1 year

    7.3

    2 year

    1.1

    3 year

    -1.7

    5 year

    7

  4. HDFC Gold ETF

    HDFC Mutual Fund's HDFC Gold ETF is a product that declared Rs. 561.67 crore at the end of 2015. The Net Asset Value of this product was Rs. 2,778.18 per unit on February 11, 2016. The scheme generally provides returns on your investment as below:

    Duration

    Returns in %

    1 month

    13.5

    3 month

    15.4

    6 month

    14.3

    1 year

    7

    2 year

    0.9

    3 year

    -1.9

    5 year

    6.7

  5. UTI Gold ETF

    UTI Mutual Fund’s UTI Gold ETF has an AUM of Rs. 446.30 crore, as in December 2015. Its NAV was Rs. 2,729.72 per unit as on February 11, 2016. Returns on the scheme are as below:

    Duration

    Returns in %

    1 month

    13.6

    3 month

    15.5

    6 month

    14.7

    1 year

    7.1

    2 year

    1

    3 year

    -1.9

    5 year

    6.8

  6. Axis Gold ETF

    Axis Mutual Fund’s Axis Gold ETF registered an AUM of Rs. 241.48 crore in December 2015. The NAV of this scheme stood at Rs. 2,777.86 per unit on February 11, 2016. This scheme gives returns as below:

    Duration

    Returns in %

    1 month

    13.4

    3 month

    15.4

    6 month

    14.6

    1 year

    7.2

    2 year

    1

    3 year

    -1.9

    5 year

    6.7

  7. ICICI Prudential Gold ETF

    ICICI Prudential Mutual Fund’s ICICI Prudential Gold ETF declared Rs. 113.44 crore at the end of 2015. The NAV of this scheme on February 11, 2016 was Rs. 2,813.84 per unit. The scheme provides returns as below:

    Duration

    Returns in %

    1 month

    13.5

    3 month

    15.4

    6 month

    14.6

    1 year

    7.1

    2 year

    1

    3 year

    -1.7

    5 year

    6.8

  8. IDBI Gold ETF

    IDBI Mutual Fund’s IDBI Gold ETF announced an AUM of Rs. 96.70 crore at the end of 2015. The Net Asset Value of this product was Rs. 2,849 per unit on February 11, 2016. Below are the general returns on your investment in the scheme:

    Duration

    Returns in %

    1 month

    13.5

    3 month

    15.4

    6 month

    14.6

    1 year

    7.3

    2 year

    1.1

    3 year

    -1.8

  9. Birla Sun Life Gold ETF

    Birla Sun Life’s Gold ETF has an AUM of Rs. 72.26 crore, as in December 2015. Its NAV on February 11, 2016 stood at Rs. 2,854.44 per unit. Returns on the scheme are as below:

    Duration

    Returns in %

    1 month

    13.5

    3 month

    15.8

    6 month

    14.8

    1 year

    7.6

    2 year

    -1.7

    3 year

    -1.7

  10. Canara Robeco Gold ETF

    Canara Robeco’s Canara Gold ETF announced an AUM of Rs. 85.93 crore at the end of December 2015. The product’s NAV was Rs. 2,703.88 per unit on February 11, 2016. Below are the firm’s returns, which are the lowest among the Gold Exchange Traded Funds:

    Duration

    Returns in %

    1 month

    9.7

    3 month

    10.6

    6 month

    10.4

    1 year

    3.6

    2 year

    -3.8

    3 year

    -3.6

Gold ETFs are a great portfolio if invested into with caution. You may not want to invest all your money on this, because gold ETFs are not very profitable in long-term investment. However, they are good to include in your investment portfolio for diversification and to ensure a safety net against sudden slumps in equities.

Read More on Gold

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Gold Rate In Other Capitals
Gold Rate In Other Major Cities
Gold Rate In States
Bank Gold Schemes

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