Gold prices soar, ETFs glitter: These exchange-traded funds allow investors to gain exposure to the precious metal
A gold ETF is an exchange-traded fund that tracks the price of gold. These funds are traded on stock markets just like securities, and investors need a demat account to buy and sell them.
Gold prices have been rising continuously, touching new all-time highs repeatedly. If you want to invest in gold, you could consider investing in gold ETFs besides buying physical gold.
Given the spike in gold prices, gold ETFs witnessed a significant surge in inflows, reaching ₹8,363 crore in September compared to ₹2,189 crore in August.
Wealth advisors often urge investors to buy virtual gold over physical gold, especially when the goal is to ride the rally, instead of using it as jewellery. On 10 October, the gold rate in Mumbai is around ₹1.24 lakh (24 carat) and ₹1.13 lakh (22 carat). As they say, a rising tide lifts all boats; stocks of gold loan companies are riding high as the prices of this precious metal hit all-time highs. Muthoot Finance and Manappuram stocks rose up to 52% YTD. Read this Livemint article for details
“One can save on making charges and storage charges (bank locker fee) when they opt for gold ETFs over physical gold. Not to mention the flexibility and liquidity it offers,” says Deepak Aggarwal, a Delhi-based financial advisor.
These are some of the gold ETFs that investors may consider for their investment portfolios.
By investing in a gold ETF, investors can capitalise on the price rise of the precious metal without having to worry about its safety.
| S. No. | Gold ETFs/FOF |
|---|---|
| 1 | Aditya Birla Sun Life Gold Fund |
| 2 | Axis Gold Fund |
| 3 | DSP Gold ETF FOF |
| 4 | Edelweiss Gold ETF FOF |
| 5 | Groww Gold ETF FOF |
| 6 | HDFC Gold ETF FOF |
| 7 | Invesco India Gold ETF FOF |
| 8 | Angel One Gold ETF FOF |
| 9 | Kotak Gold Fund |
| 10 | SBI Gold Fund |
| 11 | Tata Gold ETF FOF |
| 12 | UTI Gold ETF FOF |
| 13 | Zerodha Gold ETF FOF |
| 14 | Union Gold ETF FOF |
(Source: AMFI)
What are gold ETFs?
A gold ETF is an exchange-traded fund which tracks the price of gold, wherein one unit represents a specific quantity of gold. These funds trade on stock exchanges just like securities, and investors need a demat account to buy and sell them.
What is a fund of funds?
It is a mutual fund that, instead of investing in other securities, buys units of other mutual funds. Gold ETF FOF, therefore, is a mutual fund that buys units of other gold exchange-traded funds.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.
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