Gold prices are falling in India as the rupee gets stronger and international gold prices dip. Gold Exchange Traded Funds (ETFs) are mutual fund schemes that track gold prices in physical form. Gold ETF means you are buying gold in electronic form just like shares. It also means you do not have the hassle of physically storing gold and at the same time get the price of gold. Here are 6 gold ETFs that you could buy as gold prices dip. Remember, if gold prices fall, you are likely to see your ETF value erode and there is not much analysis you can do on a fund per se.
Negative return in the last 6 months
In the last 6 months Birla Sun Life Gold ETF has given a negative return of 3 per cent. This is in line with a dip in the domestic prices of gold. This gives an individual the chance to buy the ETF at a lower rate.
Buy the ETF if you beleive gold prices would rise
SBI Gold Exchange Traded Fund like most of its peers has given a negative returns in the last 6 months of 4.3 per cent. The fund presently has assets under management in excess of Rs 1200 crores. But the scheme if you would like to keep gold as a part of your portfolio.
Managed by Unit Trust of India
UTI Gold Exchange Traded Fund has given negative returns of 4.1 per cent in the last 6 months. Again, if you are bullish on gold in the medium to long term, you can buy the fund.
Prices of gold have fallen in the last 6 months
HDFC Gold Exchange Fund has given negative returns of 4.3 per cent in the last six months on account of gains in the rupee and drop in international prices. The fund has assets under management to the tune of Rs 744.40 crores.
Another Gold ETF with negative returns in the last 6 months
As mentioned earlier, unlike equity mutual fund, where analysis can be done of the portfolio under a particular scheme, Gold ETFs track gold prices and one really has to predict the movement of gold prices to make money from ETFs. Axis Gold ETF has given negative returns in the last 6 months of 4.4 per cent.
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