Top 7 gold ETFs with 17% annual returns in 3 years: Check physical gold’s performance in this period
Gold ETFS (Exchange-Traded Funds) have given investors an investment instrument option that can match the returns generated by physical gold. In the last three years, gold ETFs have surged by as much as 16.65% annually while physical gold (24-karat) rose by 17.05%. If we look at the last 5 years’ returns, gold ETFs have generated over 14% yield, underperforming the investment in the physical gold with over 17% return.
What is gold ETF?
Gold exchange-traded funds are financial products that trade on stock exchanges and provide you with an opportunity to take advantage of changes in gold prices. When you buy a gold ETF, you are actually buying a representation of the gold price performance and a certain amount of gold. Thus, you can take advantage of gold price fluctuations without buying physical gold.
Gold ETFs are an easy and affordable way to invest in gold, which is often considered a safe asset during times of economic crisis or instability. Investing in top gold ETFs in India can add stability and security to your investment portfolio.
Overview of gold ETFs in India
Gold exchange-traded funds (ETFs) offer investors the opportunity to invest in gold without holding the physical asset. These follow gold prices and trade on the stock exchange. Gold ETFs provide an easy way to invest in the gold market with transparency, low costs and liquidity. They can be an effective and cost-effective way to diversify a portfolio.
Also read: Top 10 silver ETFs with returns up to 33% in last 1 year
Top gold ETFs in India based on a 3-year compound annual growth rate (CAGR):
LIC MF Gold ETF
1-year return – 26.87%
3-year return – 16.65%
5-year return – 14.56%
The fund has given a return of 6.9% since its launch.
Launched in November 2011, LIC MF Gold ETF is an open-ended scheme, benchmarked against domestic price of gold. The fund has Rs 151 crore assets under management (AUM) and carries 0.41% expense ratio.
Invesco India Gold ETF FoF
1-year return – 27.02%
3-year return – 16.51%
5-year return – 14.27%
The fund has given a return of 6.91% since its launch.
Invesco India Gold ETF FoF – Direct Plan is open-ended plan, tracking domestic price of gold. It has an AUM of Rs 98 crore and carries an expense ratio of 0.10%.
LIC MF Gold ETF FoF
1-year return – 26.72%
3-year return – 16.51%
5-year return – 14.23%
The fund has given a return of 6.62% since its launch.
LIC MF Gold ETF FoF was launched on January 1, 2013. The scheme tracks domestic price of gold and commands an AUM of Rs 64 crore. The fund has an expense ratio of 0.26%.
Invesco India Gold ETF
1-year return – 26.61%
3-year return – 16.29%
5-year return – 14.45%
The fund has given a return of 10% since its launch.
Launched in March 2010, Invesco India Gold ETF, benchmark against domestic price of gold, commands an AUM of Rs 141 crore and carries an expense ratio of 0.55%.
Axis Gold Fund
1-year return – 26.54%
3-year return – 16.29%
5-year return – 14.42%
The fund has given a return of 6.8% since its launch.
Axis Gold Fund, launched in January 2013, commands an AUM of Rs 699 crore. The open-ended fund is benchmarked against domestic price of gold and carries an expense ratio of 0.17%.
UTI Gold Exchange Traded Fund
1-year return – 26.87%
3-year return – 16.25%
5-year return – 14.15%
The fund has given a return of 11.61% since its launch.
Launched in March 2017, UTI Gold Exchange Traded Fund is benchmarked against domestic price of gold. The open-ended scheme has an expense ratio of 0.49% and commands an AUM of Rs 1,440 crore.
SBI Gold Fund
1-year return – 26.45%
3-year return – 16.24%
5-year return – 14.19%
The fund has given a return of 7% since its launch.
Launched in January 2013, SBI Gold Fund is an open-ended scheme carrying an expense ratio of 0.10% and commands an AUM of Rs 2,522 crore.
(Source: Value Research)
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.