Amid Rising Gold Price, These 3 Gold Funds Are Best Buy, Given Highest Returns In Past 1 Year

Gold is a traditional investment instrument. It is a good way to protect against inflation and market volatility. However, investing in physical gold is expensive and has many other drawbacks, which makes owning and managing gold a demanding task. However, in this digital age, one can invest in gold through a gold fund without worrying about money or a whole host of other factors.

Gold Funds are a Gold Mutual Fund similar to Digital Gold. To be particular, Gold funds are funds that invest in gold through Gold Exchange Traded Funds (Gold ETFs). Gold ETFs are passive investment vehicles that invest in gold bullion and are based on gold prices. Here we have listed 3 Gold Funds that have delivered good returns over the past 1 year:

1. IDBI Gold ETF

IDBI Gold ETF is a Gold Fund launched by the IDBI Mutual Fund. It has Rs 95 crore worth of Assets Under Management. The NAV of the fund as on 18 January 2023 is Rs 5,294.9800. The fund has given 19.58% returns in the past 1 year, which is almost 13 times its category average of 1.50% in 1 year. The fund has performed better than its category average in 5 years. In 5 years it has delivered 13.19% annualised return. 

On 1 year SIP, the fund has given 23.38% annualised returns, while in the same period, its absolute return is 12.27%. If you had invested Rs 10,000 each month over the past 3 years with Rs 1,00,000 upfront investment, which is around Rs 4,60,000 total in 3 years would have translated into Rs 5,58,965 which is 11.49% annualised returns. The minimum amount required to invest in this fund is Rs 10,000. 

2. Invesco India Gold ETF

Invesco India Gold ETF was introduced by the Invesco Mutual Fund. It has Rs 89 crore worth of Assets Under Management. While its NV as on 18 January 2023 is Rs 5,150.2453. It has given 19.11% annualised returns in the 1 year, which is more than 12 times its category average of Rs 1.50%. It has performed well in the past 5 years, however, it only outperformed its category average in 5 years. In 5 years it gave 13.10% annualised returns, which is higher than its 8.95% category average. Since its inception, it has given 0.07% annualised returns, which is again higher than its category average. 

In 1 year SIP, it has given 22.85% annualised returns, while 12% absolute returns. If you have invested in this fund Rs 10,000 monthly Rs 1,00,000 upfront investment, which is almost Rs 4,60,000 in 3 years, it would have turned into Rs 5,64,348 at 11.33% annualised returns. To begin investing in this fund, the minimum investment amount required is Rs 5,000. 

3. Axis Gold ETF

Axis Gold ETF is 3rd on the list with the highest 1-year return. It was launched by the Axis Mutual Fund. It has Rs 757 crore worth of Assets Under Management. While its NAV as on 18 January 2023 is Rs 49,4591. In the 1 year, the fund was given 19.05% annualised returns, which was 12 times its category average return in the same period. The same followed its peers' fund returns as it has delivered good returns in the 5 years around 13.08% annualised returns, which is better than as compared to its category average return. 

The fund has also performed well on SIP in the 1 year. It gave 22.69% annualised returns in 1 year. While in the same period, it delivered an 11.92% absolute return. If you had made initial investments Rs 1,00,000 and Rs 10,000 SIP every month in this fund, which is Rs 4,60,000 in total in 3 years would have turned into Rs 5,63,461 at 11.24% annualised returns in 3 years. The minimum amount required to start investment in this fund is Rs 5,000. 

Disclaimer

Read all scheme-related Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.