Gold ETF: Gold ETF gave 12 to 13% annual return in 3 years, best way to invest in gold, what are its benefits

Gold ETFs 2024: Gold Exchange Traded Funds (Gold ETF) have become a safe investment option in the last few years. It is an open-ended mutual fund, which is based on the rising and falling prices of gold. The best way to invest in paper gold is Gold ETF, which is very cost-effective. It gives the flexibility of investing in stocks along with investing in gold. Gold ETF can be bought and sold on BSE and NSE just like shares. Being in electronic form, there is no problem regarding purity in Gold ETF.

Gold ETFs with best returns in 3 years

LIC MF Gold ETF FoF: 14% p.a.
Invesco India Gold ETF: 13.15 per cent annually
ICICI Pru Gold ETF: 13.10% p.a.
Kotak Gold ETF: 13% per annum
ABSL Gold ETF: 13% per annum
SBI Gold ETF: 13% per annum
Axis Gold ETF: 12.50% p.a.
UTI Gold ETF: 12.50 percent annually
HDFC Gold ETF: 12% per annum

Benefits of Gold ETFs

• You can buy Gold ETF units like shares. The purchasing charge is less in comparison to physical gold. Whereas 100% purity is guaranteed.
• There is no hassle of buying physical gold (Gold Rates Today) and maintaining it. Investment also gives good returns in the long term.
• There is a facility of investing through SIP. Investing in Gold ETF is less volatile as compared to investing in the stock market.
• Due to being in electronic form, there is no problem regarding purity in Gold ETF.
• You can buy Gold ETF online through a demat account. High liquidity means you can buy and sell it whenever you want. You can start Gold ETF with 1 gram i.e. 1 Gold ETF.
• It is cheaper than physical gold in terms of tax. Long term capital gains have to be paid on gold ETF. Gold ETF can also be used as security to take a loan.
• You have to pay making charges on physical gold. But this does not happen in Gold ETF.

How to invest in Gold ETFs?

It is necessary to buy at least one unit for investment. Each unit is of 1 gram. Buying Gold ETF is done just like buying shares. You can buy Gold ETF from your existing trading account only. The units of Gold ETF are deposited in the demat account. Gold ETF is sold through the trading account only.

Importance of Gold as an Asset

Many people in the country invest in gold for a long time. Its economic value remains intact even in the long term. Therefore, most people consider it a safe asset and invest in it. Not only this, gold is also seen as a hedge against inflation. Gold plays an important role in asset allocation. Risk diversification is an essential aspect of asset allocation. Adding gold to your investment portfolio will bring more stability to your portfolio in the market.