Gold Exchange Traded Funds (ETFs) track gold prices in the domestic markets. Gold prices in the domestic markets in turn track international gold prices, which have now fallen to a 5 year low.
Motilal Oswal Most Share Gold ETF
Like all its peers Motilal Oswal Most Share Gold ETF track gold prices. The fund has given -6.1 per cent in the last one year and -7.1 per cent in the last 2 years in line with gold prices. You can redeem the Gold ETF units for physical gold if you so desire under the Motilal Oswal Most Share Gold ETF scheme. The physical gold that you would so get would be pure imported gold.
IDBI Gold Exchange Traded Fund
IDBI Gold Exchange Traded Fund is backed by 24 k gold of 99.5 per cent purity. Like most of its peers the fund has given negative returns in the last one year, thanks to a slump in gold prices. The last one year returns is -11.7 per cent and the last 2 years returns is -5.8 per cent.
SBI Gold Exchange Traded Fund
SBI Gold Exchange Traded Fund like most other peers is similar when it comes to features. It offers you the ability to hold gold in the electronic form without worries over theft. However, the returns like most others has been nagative in the last 2 years. It's difficult to predict if it will remain so. As mentioned earlier those planning to invest in gold ETFs should look at it as more of a diversification of portfolio.
SBI Gold Exchange Traded Fund has given negative returns of almost 11 per cent in the last one year.
Kotak Gold ETF
Koak Gold ETF like others tracks domestic prices of gold. It's important to note that gold ETFs do not attract wealth tax. The fund has given -11.9 per cent in the last one year.
Goldman Sachs Gold Exchange Traded Scheme
This is among the largest Gold ETFs in India. It has generated a returns of -11.1 per cent in the last one year. Like other schemes it tracks international prices of gold.
Gold prices have fallen in the last 2 years and Gold ETFs have taken a bad hit. There is no guarantee that gold prices would recover. Only when gold prices recover can one hope for a recovery in Gold ETFs. The short term scope for recovery in gold prices looks doubtful. One has to take a more long term view while investing in gold.