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Top Best Gold ETFs in India 2022

Updated on :  

08 min read.

Gold Exchange Traded Funds (Gold ETFs) are passive investment schemes. They track the prices of gold in the domestic market and invest in gold bullion. One of the biggest advantages of Gold ETFs is that they combine the simplicity of investment in gold and the flexibility of stock market investment. Investment in gold ETF has gained traction in recent times. 

If you are planning to invest in a Gold ETF, here are the top 5 Gold ETFs that you can invest in 2022. 

Top 5 Gold ETFs in India 2022

These are the top 5 best Gold ETFs in India in the current market scenario:

1.HDFC Gold ETF

This gold exchange-traded fund was launched on 13 August 2010. It is under the management of HDFC Asset Management Company Ltd. and aims to generate capital based on the performance of gold. 

Currently, this gold exchange-traded fund has assets under management worth Rs.3121.56 crore. Moreover, its net assets value currently stands at Rs.44.50. Since its launch, this ETF has delivered 7.7% as a return on investment. In addition, it also has an annual expense ratio of 0.59%. 

Based on the time period, here are its returns:

Time Period Rate of returns (%)
1-year4.1
3-year8.5
5-year10

To start investing in it, there is a minimum SIP amount of Rs.100. You can also make a minimum lump sum investment of Rs.5,000. Furthermore, it does not have any lock-in period. 

This Gold ETF is suitable for those investors with an investment horizon of more than 5 years. 

2. SBI Gold ETF

Launched on 18 May 2009, the SBI gold exchange-traded fund is under the management of SBI Funds Management Ltd. This mutual fund’s investment strategy aims to generate wealth by investing in physical gold. 

At the time of writing, this fund’s net asset value stands at Rs.44.57. Moreover, it has assets under management worth Rs.2589.11 crore. If you want to invest in this scheme, you can start with a minimum SIP amount of Rs.100 or a lump sum amount of Rs.5,000. Furthermore, there is no lock-in period. 

From its inception, the SBI Gold ETF has had an 8.7% return on investment rate. These are its returns based on the time period:

Time Period Rate of returns (%)
1-year4.1
3-year8.6
5-year10.2

This Gold ETF is suitable for investors having investment horizon of more than 5 years. 

3. IDBI Gold ETF

Managed by IDBI Asset Management Limited, this Gold ETF came into existence on 16 November 2011. It has no lock-in period, and you can start your investment journey with this scheme with a starting SIP amount of Rs.100. Alternatively, you can also go for the minimum lump sum investment amount of Rs.5,000. 

At the current date, this mutual fund has Rs.86.65 crore worth of assets under management. It has a net asset value of Rs.4629.54 and an annual expense ratio of 0.35%. Additionally, since its launch, this scheme has delivered to its investors a return on investment at the rate of 4.3%. 

Here are its return rates based on the time period:

Time Period Rate of returns (%)
1-year4.5
3-year8.7
5-year10.4

This mutual fund scheme may experience volatility in the short term. Thus, you should only invest in this scheme if you have a long-term investment goal.  

4. Axis Gold ETF

The Axis Gold ETF is under the management of Axis Asset Management Company Limited. Since its launch on 10 November 2010, this mutual fund scheme has delivered a 6.6% return on investment. 

At the date of writing, it has Rs.690.54 crore worth of assets under management. In addition, this fund has a net asset value of Rs.43.41 with an annual expense ratio of 0.53%. 

You can start investing with this exchange-traded fund with a minimum SIP of Rs.100 and a starting lump sum amount of Rs.5,000. Furthermore, this scheme does not have any lock-in period. 

Take a look at its rate of returns:

Time Period Rate of returns (%)
1-year4.3
3-year8.6
5-year10.3

You need to have an investment horizon of more than 5 years to get profits from this scheme. 

5. Aditya Birla Sun Life Gold ETF

The Aditya Birla Sun Life Gold ETF is under the management of Aditya Birla Sun Life AMC Ltd. Currently, this scheme has assets under management worth Rs.331.77 crore. Its net asset value stands at Rs.45.70. Furthermore, this scheme has an expense ratio of 0.54% annually. 

Like most other exchange-traded funds on this list, you can start with a beginning SIP amount of Rs.100. On the other hand, you can also go for the Rs.5,000 lump sum investment. In addition, this fund also does not have any lock-in period. 

From its inception, this exchange-traded fund had a 6.5% return on investment. Here are its returns depending on the time period:

Time Period Rate of returns (%)
1-year4.1
3-year8.8
5-year10.3

To invest in this Gold ETF, you should ideally have a 5-year investment horizon. 

Note: All the data in this article is of 17 October 2022. 

Now that you know the best gold ETFs in India, you can start including them in your portfolio. However, when choosing a gold exchange-traded fund, do not simply choose funds based on the expense ratio. Instead, you should analyse the scheme’s performance in the last few years. It will help you understand how well its fund manager is able to manage the fund. 

Additionally, you should avoid making vast investments in gold. Rather, you should consider allocating 5-10% of your portfolio to gold exchange-traded funds. This will help you maintain a solid portfolio diversity and also get consistent returns. 

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