Gold ETFs are an excellent substitute for physical gold since their price tracks that of the metal. These are passive funds, one unit of which represents 1 gm of the metal in very high degree of purity. The first Gold ETF was launched in India in 2007.
With the example of three popular funds let’s see what sort of returns they can fetch you.
Goldbees from Nippon India Mutual Fund
Goldbees from Nippon India Mutual Fund is a big fund that is widely popular.
An amount of Rs 100,000 invested in this fund 1 year ago would have provided the investor Rs 115,332. The absolute return over 1 year was 15%.
The same investment over 2 years would have provided Rs 133,132, providing an absolute return of 33.13%.
The returns over 3 and 5 years on Rs 100,000 would have been Rs 140,323 and Rs 184,973 respectively, fetching returns of 40.32% and 84.97%.
Over a 10-year period, the same investment would have generated a total return of Rs 224,772 – an absolute return of 124.77%.
These returns are based on data as on July 24, 2024.
Axis Gold Fund
Let’s check the returns given by Axis Gold Fund over 1, 2, 3, 5 and 10 years.
Rs 100,000 invested in this fund 1 year ago would have provided Rs 121,865 – an absolute return of 21.87%.
Over a period of 2 and 3 years, the same amount would have fetched a total value of Rs 141,417 and Rs 149,115 respectively, providing returns of 41.42% and 49.11%.
Over 5 and 10 years, the returns would have been Rs 200,959 and Rs 221,596 respectively. The returns would have worked out to 100.96% and 121.60%.
These returns are based on the NAV on July 25, 2024.
SBI Gold Fund
Let’s take another popular fund SBI Gold Fund. Considering the NAV as on July 24, 2024, the returns provided over the past 1, 2, 3, 5 and 10 years are as follows:
An investment of Rs 100,000 made 1 year ago in this fund would have generated a value of Rs 118,029 (absolute return of 18.03%).
The return in 2 years would have been 135,642 (35.64%).
The return in 3 and 5 years would have been 144,017 (44.02%) and Rs 193,786 (93.79%) respectively.
The return in 10 years would have been Rs 224,925 (124.92%).
However, one must take note that the price of gold has been dipping over the past three months. One must always consult a qualified investment advisor before committing one’s hard-earned money.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Gold ETFs are an excellent proxy for investments in physical gold. They track the price of the metal and like gold are a hedge against inflation. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
