How ₹10,000 Monthly SIP Grows to ₹71 Lakh in 18 Years in Kotak Gold ETF

Launched in 2007, the Kotak Gold Exchange Traded Fund (ETF) has completed 18 years with an impressive performance record. A monthly SIP of ₹10,000 since its inception would have grown to approximately ₹71 lakh, generating an annualised return of 11.99% on a total investment of ₹21.6 lakh. 

Performance Snapshot

For lump sum investors, a one-time investment of ₹10,000 at launch has grown over nine times to ₹93,524.73. The compounded annual growth rate (CAGR) since inception is 13.22%, while the fund has surged 42.5% in the last one year alone, driven by rising global gold prices.

Backed by High-Quality Gold

Each unit of the ETF is backed by physical gold stored with Deutsche Bank and meets the Good Delivery standards set by the London Bullion Market Association (LBMA), ensuring superior purity and quality. 

Convenient and Low-Cost Gold Investing

Kotak Gold ETF offers an easy and affordable way for investors to gain exposure to gold, without worrying about storage, theft, or quality issues. Retail investors can buy even a single unit via stock exchanges.

Gold’s Role in Portfolio Diversification

Gold is known to hedge against inflation and reduce risk during volatile markets. It helps to diversify your investment portfolios. ETFs make this accessible at wholesale prices with better liquidity.

Read More: Quant Flexi Cap Fund vs Parag Parikh Flexi Cap Fund.

Conclusion

With strong returns, low entry barriers, and the safety of high-quality gold backing, it offers an effective way to diversify portfolios and hedge against inflation. For investors seeking a reliable and convenient path to build gold exposure, especially amid global uncertainties, this ETF can be an ideal investment option.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.