Best Gold ETFs in India in November 2024 – Based on 5yr CAGR

Gold Exchange Traded Funds (ETFs) is one of the ways to invest in gold. When looking into what is Gold ETF and Gold ETF meaning, it’s important to note that these funds are designed to track the price of gold, giving investors exposure to the metal’s value through a stock market investment. The full form of Gold ETF is Gold Exchange Traded Fund, and it allows people to invest in gold with lower costs and higher liquidity compared to physical assets. 

For those wondering which Gold ETF is best, the answer depends on factors like performance history, expense ratio, and fund liquidity. Different Gold ETFs cater to various investment preferences, from low costs to higher returns. In this article, check the best Gold ETFs in India in November 2024, based on their 5-yr CAGR and learn the factors to consider while investing. 

Best Gold ETFs in India in November 2024 – 5yr CAGR Basis

Note: The best gold ETF funds in India provided here are as of November 6, 2024. The gold ETF Funds are sorted based on the 5-yr CAGR.  

Overview of the 5 Best Gold ETFs in India

• IDBI Gold Exchange Traded Fund

IDBI Gold Exchange Traded Fund is an exchange traded fund from IDBI Mutual Fund. The fund was launched on November 9, 2011. This open-ended index scheme tracks the domestic price of physical gold, and as of June 2024, it boasts a 3-yr CAGR of 5.76%. The minimum investment required for this fund is ₹5,000.

• Invesco India Gold Exchange Traded Fund

Invesco Mutual Fund launched Invesco India Gold Exchange Traded Fund on March 12, 2010. This fund tracks the physical gold domestic price. As of October 31, 2024, the 3-yr CAGR of the fund is 17.50%. There is no minimum investment required to purchase this fund. As of November 5, 2024, the NAV of this fund is ₹6,910.28.

• Aditya BSL Gold ETF

Aditya BSL Gold ETF is an exchange traded fund from Aditya Birla Mutual Fund. The fund was launched on May 13, 2011. This open-ended index scheme tracks the domestic price of physical gold, and it boasts a 3-yr annualised returns of 17.16%. The minimum investment required for this fund is ₹5,000. As of November 5, 2024, the NAV of this fund is ₹69.74. 

• SBI Gold ETF

SBI Mutual Fund launched SBI Gold ETF on May 18, 2009. This fund tracks the price of gold, where the price refers to the morning fixing of Gold by London Bullion Market Association (LBMA). The 3-yr CAGR of the fund is 16.74%. As of November 6, 2024, the NAV of this fund is ₹67.87.

• ICICI Prudential Gold ETF

ICICI Prudential Gold ETF is an exchange traded fund from ICICI Prudential Mutual Fund. The fund was launched on August 24, 2010. This open-ended index scheme tracks the domestic price of physical gold. It has a 3-yr CAGR of 16.89%. The minimum investment required for this fund is ₹5,000. As of November 5, 2024, the NAV of this fund is ₹67.82. 

Factors to Consider While Investing in Gold ETFs

When choosing the best Gold ETF, there are several key factors to consider. 

• Expense Ratio: The expense ratio represents the annual fees charged by the fund to cover management costs. Lower expense ratios are generally preferable, as they reduce the impact of fees on your returns. Comparing the expense ratios among Gold ETFs can help identify the most cost-effective options.
• Tracking Error: Tracking error indicates how closely a Gold ETF mirrors the price of gold. A low tracking error means the ETF follows the gold price more accurately, which is crucial for investors seeking returns that closely reflect the metal’s market performance.
• Liquidity: Liquidity is essential for easy entry and exit from the investment. Higher liquidity generally means tighter bid-ask spreads, which reduces costs for investors when buying or selling shares. 
• Historical Performance: While past performance doesn’t guarantee future returns, it can provide insight into the consistency and management quality of the ETF. Comparing the long-term performance of various Gold ETFs can help identify those with strong, stable returns.

Conclusion

Gold ETFs provide a convenient and accessible way to add gold to your investment portfolio, offering both flexibility and liquidity. However, it’s essential to carefully evaluate factors like expense ratios, tracking error, and liquidity to ensure they fit your broader financial goals. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.