In the recent years, Gold ETFs has gained popularity amongst investors. Most investors have got inclined towards investing in Gold ETFS since they regularly monitor gold prices and understand the importance of eliminating the need of gold storage. Instead of investing in physical gold, investing in Gold ETFs could be a better option since it’s easy to sell and are held in electronic form, so naturally there’s no scope of theft.
The best option to invest in Gold ETFs is through ETFs that are highly liquid, the ones that help in balancing the portfolio and have transparent pricing system. Before investing, let’s understand the basics of ETFs. ETFs, popularly known as Exchange Traded Funds have been successfully accepted by the local investors. Investing in ETFs is similar to stock investments, but with an interesting difference. When it comes to stock investments, it’s an important step to analyze the stocks. However, contrast to this, investing in ETFs doesn’t necessarily require any analysis. To make it easier for investors, we have listed the best Gold ETFs to invest in.
SBI Gold Fund
SBI Gold ETF is amongst the top rated gold ETFs in India with good amount of assets under management. This ETF has been well managed and has a good potential to generate returns. This scheme is ideal for investors who’d likely be interested to invest in gold but want to avoid the hassles and costs behind storing physical gold. The benchmark here is price of the Gold. If an investor wants to purchase SBI’s gold fund, they can buy units of this scheme on regular basis on the stock exchange where the scheme units are listed like any other traded securities.
Kotak Gold ETF
This scheme is an open-ended gold exchange traded fund that invests in physical gold and aims to track the gold prices as closely as possible. Thus it enables the option of investing in gold without getting physical delivery of gold.
For Kotak Gold ETF, the benchmark is the domestic price of Gold. Kotak Gold ETF has underperformed by 1% since its inception which aligns/better in comparison to other gold ETFs.
Reliance Gold ETF
Reliance Gold ETF is an open-ended Gold ETF that started way back in November 2007. The prices of Reliance gold fund is affected by numerous factors such as currency exchange rates, gold supply and demand, expectations with respect to inflation rate, interest rates, etc. The benchmark here is decided basis the price and purity of gold. All gold bullion held in Reliance gold fund scheme’s allocated account with the upholder shall be 99.5% pure at least.
Lately, Gold ETFs have gained a lot of importance. Gold ETFs first started in Australia in the year 2003 with Gold Bullion security’s inception. In India, the first Gold ETFs was initiated in the year 2007. Gold ETFs are traded on the major stock exchanges and they are responsible to track the gold bullion performance. An investor is allowed to purchase and sell gold ETFs on the stock exchanges. They can also purchase it online and safeguard it in their demat account.