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Best Gold ETFs to Invest in India in 2022

gold etfs to invest in 2022

As an investment buying gold in physical form can not be hard. But when the time comes to sell it, its liquidity becomes an issue. On the other hand, buying Gold ETFs in India is more risk-free. Hence you are only investing in shares not on the gold directly. Therefore its liquidity is not an issue. It is also considered a smart way to invest in gold in today’s world. As I told you before about its high liquidity. That means when the gold market is going up you can simply sell your Gold ETFs and book your profits. Selling ETFs are hassle-free and profitable at the same time.

In the following, we shall learn about Gold ETFs and if it is safe to invest in Gold ETFs in India. We shall also learn about the best Gold ETFs to invest in in the upcoming year.

Faq about Gold ETFs in India

What are ETFs?

The full form of ETF is Exchange Traded Fund. ETF units are typically purchased and sold by a registered broker at a reputable stock exchange. An ETF’s units are traded on stock markets. ETF units are not purchased and sold like regular open-end equity funds because they are only listed on the stock exchange. Through the exchange, an investor can buy as many units as she wants without any restrictions.

What are Gold ETFs in India?

If any investor invest in the Exchange Traded Funds through the gold that is called Gold ETFs. That means you are investing your money in gold which is 99.5% pure through a Demat account. Buying physical gold can be an issue as it might be got stolen, or you may get less value when you will sell it in the near future. But in the Gold ETFs, there is no such risk.

Are Gold ETFs in India profitable when the equity market is down-trending?

Yes always, many analysts have analyzed that whenever the equity market moves in a bear market with a downtrend, the commodity market accelerates and comes up with an uptrend. That means if the equity market is going down words then putting your investment on the commodity market is more profitable.

Name some of the well-known Gold ETFs to invest in?

Some of the well-known Gold ETFs are Reliance Gold ETFs, SBI Gold ETFs, Quantum Gold ETFs, HDFC Gold ETFs, etc.

Definition of Gold ETFs in India

Aside from buying gold bullion directly. You can obtain exposure to gold through investing in Gold Exchange-Traded Funds (ETFs) or gold futures contracts. When compared to alternatives such as gold futures or shares of gold-mining firms, some investors see ETFs as more liquid. As it is also a low-cost way to invest in gold. Still, because gold’s price fluctuates a lot, ETFs that track it can be somewhat volatile. Gold ETFs consider being more safer option from an investor’s perspective. There are very few cases when the gold price has dropped drastically. As we all know the value of Gold ETFs also grows with the gold price itself.

How to invest in a Gold ETFs?

Investing in Gold ETFs is as easy as investing in the stock market. The basic thing you need is a Demat account under any broker house or any similar sort of online trading account. After you’ve set up your account, all you have to do now is choose Gold ETF and place an order through your broker’s trading site.
Many people often think it is not safe to invest in Gold ETFs. But let me tell you it is safe. It is just like buying gold from the market. Gold investment is a secure investment. Since it may be used to hedge against currency fluctuations and inflation. The Gold ETFs that are more than a year old are subject to long-term capital gains tax. Gold ETFs, on the other hand, are exempt from VAT, Wealth Tax, and Securities Transaction Tax.

Check the Gold ETF market from NSE India

First, open Google chrome and write “nseindia.com”. Google Chrome will take you to the official site of the National Stock Exchange of India.

gold etfs in india

Or you can also use this direct link in the following to visit the NSE India website,

Direct link to visit National Stock Exchange India

visit Nse India directly

After visiting the website, you can see a page on your screen which looks like the above image. This is the home page of the National Stock Exchange India. As we are trying to search for the ETF segment we will click on the “Market Data” section.

National stock exchange

After clicking on “Market Data” a page will open which looks like the following image. In which we will click on the “Equity & SME Market”.

NSE website

From there select “Exchange Traded Fund”. Look something like the image which is presented in the following. Now, A page will show up containing all the ETF companies.

exchange traded fund
Exchange traded fund

In the above image, I show that with an orange rectangular box. Now click on the drop drow arrow and choose Gold ETFs from there. After clicking on it, you will see all the Gold ETFs are presented on your screen. If you want to know about the most traded Gold ETFs then go to the volume section and click on it.

Best Gold ETFs in India accoding to volume

Best Gold Exchange-traded funds according to the Indian share market is being presented in the following. We have picked the following shares according to their trading volume. In which GoldBees ETF share has the best trading volume. In the following, we have arranged the Gold ETF shares in descending order.

i) GoldBees

Nippo Asset Management company is the owner of GoldBees. It launched its fund on 8th March 2007. If the trading volume on the stock exchange is large, however, it is better to buy and sell Gold ETF. This will ensure that liquidity is maintained, and you will be able to purchase and sell units at any time and in any quantity. The Nippon India ETF GoldBees has the highest average monthly trading volume of all listed Gold ETFs at Rs 3,845.26 Cr.

Nippo gold etfs in india
  • The asset manager currently managing 6416.57cr.
  • If we take at their return percentage that is quite satisfying. But you have to invest it for a long time for a minimum of 3 to 4-years. Because according to the returns 1-year return is -4.52%, 3-years return is 46.26%, and in the 5 years, return is 63.28%. So as I told you before Gold ETFs are for long-term investments.
  • This share is highly liquid. As you can buy or sell it when ever you want.

ii) Kotak Gold

Kotak industries come up with its Kotak Gold ETF on 27th July 2007. Abhishek Bisen is the fund manager. The share price was 41.82 rupees on 31st Dec 2021. The price fluctuates a bit but if you invest in a steady manner and book your profit from time to time. This sector will help to gain profit by passing years.

kOTAK gold etfs in india

Here I have presented you the chart of Kotak Gold ETF by the growth of the volume you can easily guess that the gold market is very good for trading and investing.

  • The asset manager is in charge of 2012cr at the moment.
  • When we look at their return percentage, it’s extremely impressive. However, you must invest for a lengthy period of time, at least 3 to 4 years. Because the 1-year return is -11.83 percent, the 3-year return is 53.10 percent, and the 5-year return is 38.47 percent, according to the results. As I have stated, Gold ETFs are intended for long-term investments.
  • This stock is quite liquid. Because you have the option to buy or sell it whenever you choose.

iii) Axis Gold ETFs

41.62 rupee is the current share price of Axis Gold ETF. the company published its IPO on 20th October 2010. Mr. Aditya Pagaria is the current fund manager of Axis Gold.

Axis Gold ETF in India
  • The current asset is 108.86cr which is managed by the asset maneger.
  • If we take a look at the returns of this share it is quite clear that the share has provided the returns of 5 years is 9.82%, 3-years is 14.02%, and yearly is -6.52%. This returns are on an average investment of 100k.
  • The liquid is 35,000 grams as Gold ETFs are traded in lots of 1 gram so in that perspective 35000g means 35 kg of gold.

iv) HDFCMFGETF

42.67 rupees is the current price of HDFCMFGETF’s Gold ETF share. It was launched on 13-Aug-2010. Krishan Kumar Daga is the current fund manager who invests the money in gold.  ₹ 2,865 Cr (As of 30-Nov-2021) is the asset value of the company.

HDFCMFGETF Gold ETF in India
  • When we look at the results of this stock, we can see that it has generated returns of 46.67 percent over three years and -6.75 percent over one year.
  • High liquidity.

v) ICICIGOLD

The current price of the share is 42.45 rupees. It was launched on 30th June 2010. The current fund manager is Manish Banthia.

ICICI Gold ETF in India
  • Net assets of this company 2450.89 Cr.
  • Liquidity is not an issue as many investors as well as traders like to invest in this Gold ETFs. That is why it has high volume.
  • The annual return on 1 year is -6.66%, 3 years return 13.73% and 5 years return will be 9.51%.

Gold ETFs in India suggested by Money Control

In the following, I have presented you the table of Gold ETFs which is going well in the market.

Company NameLast Price% Chg52 wk
High
52 wk
Low
Market Cap
(Rs. cr)
SBI Gold ETF4,280.000.544,712.003,930.00327.03
Invesco G-ETF4,360.001.454,745.003,989.5049.83
HDFC Gold ETF42.840.6150.0038.706.59
UTI – Gold41.690.4646.7539.215.79
Nippon ETF Gold41.650.4145.2038.174.27
Axis Gold ETF41.680.1244.9938.363.20
IPRU Gold ETF42.750.3346.5039.052.00
Kotak MF-GETF42.080.5345.2936.811.68
Birla Gold ETF43.950.0744.900.001.00

Gold ETFs in India suggested by BankBazaar

BankBazaar broker house suggested Gold ETFs are

  1. Birla Sun Life Gold ETF
  2. Goldman Sachs Gold ETF
  3. Religare Invesco Gold ETF
  4. Quantum Gold Fund
  5. SBI Gold ETF
  6. IDBI Gold ETF
  7. R*Shares Gold ETF
  8. Axis Gold ETF
  9. Kotak Gold ETF
  10. ICICI Prudential Gold ETF

Gold ETFs in India peer comparison

In the following, I have put forth a comparison of all those Gold ETFs which I have mentioned above. Hence, we all know Nippon GoldBees is the best Gold ETF as it has a high volume. People find it trustworthy too. That is another reason most of the traders and investors who want to invest in Gold ETFs invest through Nippon GoldBees.

peer comparision

As you can see in the above picture you will find that if you are reluctant to invest in Nippon GoldBees there are also some similar Gold ETFs that you can take up as a suggestion. Which can be also profitable to invest in.

Conclusion

In the end, I hope you have a clear view of Gold ETFs. As we have discussed the topic throwing. But one thing that you have to keep in mind is that I have chosen the shares according to their trading volume. There are so many other big stock brokers which have suggested some other shares which is ok. Because they have made the list according to some other parameters such as returns, background, etc. So now it is upon you what kind of shares you are looking for for trading purposes.

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