In place of buying physical gold, the best bet would be Gold ETFs. These set of instruments are ideal in terms of safety, as they are traded in the electronic form. Also, they are fairly liquid, which makes them an interesting pick. Here are 5 best gold ETFs that you can buy.
SBI ETF Gold
SBI ETF Gold has generated a return of 20.26 per cent in the last one year. The year to date return from the fund is close to 20.25. Like other Gold ETFs, the SBI ETF Gold also tracks gold prices.
Those looking to diversify their returns by investing in gold, this is not a bad bet. The returns from the fund is very high for the last one year, but, there is no guarantee that the same returns would be generated in the future. Gold tends to give returns over the longer term and hence one needs to be patient before investing in gold.
Axis Gold ETF
This is another fund that has generated decent returns in the last one year. The fund has generated a return of 20.76 per cent in the last one year. Axis Gold ETF is a good bet for those who are willing to take a long-term view.
The 2-year returns on the fund has been close to 14.23 per cent, which beats returns that one gets even from bank deposits. In fact, gold has been the best asset class that has generated superior returns in the last few years. However, one needs to be a little cautious given that prices have run-up too fast in the last few years.
HDFC Gold Exchange Traded Fund
The returns from HDFC Gold Exchange Traded Fund is almost similar to that of most other funds. The one year returns from the fund is 19.77 per cent, which is slightly lower than the above two mentioned funds.
The two year returns from the fund is 13.98 per cent, which is again marginally lower.
It is important to note that investment in gold ETFs and profits made thereof is subject to tax. Also, gold prices tends to be volatile and hence one need not expect superlative profits from the same. However, it is advised that a certain portion must be invested in gold as a measure of diversification.
Quantum Gold Fund
Quantum Gold Fund has generated a superlative return of 21.33 per cent in the last one year. Investors, should always remember that it is better to buy gold etfs, than physical gold, because there are no making charges and the price of ETF gold is more closer to spot gold prices. They are also liquid, which means they can be easily bought and sold.
UTI Gold Exchange Traded Fund
Most gold exchange traded funds tend to give similar returns to each other, and UTI Gold ETF is no different.
The 1-year returns is 20.26 per cent, while the 5-year returns is 14.23 per cent. It is unlikely that we will see superlative returns like the above in gold, given the substantial rally in the past. However, those with a long-term view might want to invest to reap rich returns.