Looking to Invest in the Best Gold ETF This Year?

If you’re starting to invest, the whole know-how of the process can be daunting. With multiple options at your disposal, it can get very confusing as to what would suit you and your needs. Of course, you would want to start with something small and, at the same time, something safe, right? And what if we were to tell you that there is an investment option for you that is just that and more, aka Gold Investment? Yes, you heard that right; the opportunity that we are talking about is investing in Gold ETFs. If you want to know more about this very lucrative option, read on and find the best Gold ETFs to buy and invest in.

What Exactly is a Gold ETF? 

Gold Exchange Traded Funds are passive investment instruments that can be treated as a stock because of their flexibility and are as simple to invest in as gold. Gold EFTs are better for multiple reasons but primarily because they do not have to be maintained or stored as they are just paper but are represented as physical gold. Gold EFTs are based on gold prices and invested in gold bullion, i.e., in bulk, before being valued by weight. One Gold ETF equals 1 Gram of Gold and is equivalent to the purity of physical gold. As these ETFs follow real-time gold pricing, it is very convenient to keep transparency in check. 

Now that you know what Gold ETFs are, how about a comprehensive list of the best gold ETFs to buy?

Best Gold ETFs to Invest in Right Now!

Let’s get to the hero of the story, shall we? Here are the top 8 best-to-buy gold ETFs you should get your hands on

1. IDBI Gold ETF

• This gold ETF belongs to IDBI Mutual Fund House, and its Return Since Launch has been 4.27%
• The fund size of IDBI Gold ETF is worth Rs. 88.07 Crore
• The expense ratio is 0.35%
• The net asset value of this Gold Exchange Traded Fund is Rs. 4647.81
• The minimum investment that is to be made under this ETF is of Rs. 10,000

2. Invesco India Gold ETF

• Invesco Mutual Fund House-owned gold ETF’s Return Since Launch has been 8.29%
• The fund size of this gold ETF is around Rs. 87.06 crore
• The expense ratio is 0.55%
• The net Asset Value of this Gold Exchange Traded Fund is Rs. 4,530.53
• The minimum Investment to be made under this ETF is Rs. 5,000

3. Aditya Birla Sun Life Gold ETF

• Birla Sun Life Mutual Fund House-owned gold ETF’s Return Since Launch has been 6.59%
• The fund size of this Exchange Traded Fund is worth Rs. 349.84 crore
• The expense ratio is 0.54%
• The net Asset Value of this ETF is Rs. 45.91
• Rs. 5,000 have to be invested as the minimum value to get started.

4. HDFC Gold ETF

• Return Since the Launch of this HDFC Mutual Fund House has been 7.81%
• The fund size of HDFC Gold ETF is worth Rs. 3157.97 crore
• The expense Ratio is 0.59%
• The net Asset Value of this ETF is Rs. 44.68
• The minimum investment to get started with this ETF is Rs. 5,000

5. SBI Gold ETF

• This ETF comes under SBI Mutual Fund House and has made an 8.63% Return Since its Launch.
• The fund size of the SBI ETF is worth Rs. 2677.85 crore
• The expense ratio is 0.55%
• The net Asset Value of this ETF is Rs. 44.76
• The minimum investment to be made under this ETF is Rs. 5000

6. Axis Gold ETF

• Axis Mutual Fund House-owned Exchange Traded Fund’s Return Since Launch has been 6.76%
• The fund size of Axis Gold ETF is worth Rs. 702.53 crore
• The expense ratio is 0.53%
• The net asset value is Rs. 43.58
• The minimum investment to be made to get started with this ETF is Rs. 5,000

7. Kotak Gold ETF

• Kotak Mahindra Fund House-owned Gold Exchange Traded Fund’s Return Since Launch has been 11.21%
• The fund size of Kotak Gold ETF is worth Rs. 2426.43 crore
• The expense Ratio is 0.55%
• The net Asset Value of this ETF is Rs. 43.61
• The minimum investment value for this ETF is Rs. 5,000

8. Nippon India Gold ETF

• This Nippon India Mutual Fund House-owned Gold ETF’s Return Since Launch has been 10.32%
• The fund size of this Gold Exchange Traded Fund is worth Rs. 6532.62 crore
• The expense ratio is 0.83%
• The net value asset of this ETF is Rs. 43.21
• The minimum investment value that is to be paid is Rs. 10,000

Things to keep in mind while investing in Gold ETFs

Every ETF could be the best ETF to buy if you make sure to research thoroughly and keep these points in mind: 

1. Keeping track of the fund’s past performance is vital to know what you’re investing in and ensuring the most negligible risks are involved. To do so, it is advised that you consider at least three years’ worth of data.
   
   
2. The market constantly fluctuates, and you must keep asset liquidity in mind to minimize risks.

3. You must always track index funds to check for any inconsistency between the Net Asset Value (NAV) and the actual gold value, which could otherwise lead to an error.

Final Takeaways

If you’re an investor, you know how important it is to diversify your portfolio and what could be better than a less-risk and more-profit option of a Gold Exchange Traded Fund? Gold acts as a shield against never-ending market volatility and inflation. Investing in Gold ETFs is as secure as security can get since there are no theft threats, and on top of that, you wouldn’t even have to incur any making or additional charges. It’s not without any reason that investing in gold ETFs is becoming increasingly popular, so all in all, get investing in the best gold ETFs in India today!

Piramal Finance offers you relevant information regarding multiple exchange-traded funds across India. For any banking loan-related query, you can visit the website. The financial experts will help you better understand your finances, from personal loans to mutual funds, better.