Top 3 Gold ETFs Have Given Returns Above 10.93% In 6-Months

IDBI Gold ETF, Axis Gold ETF and UTI Gold ETF are three funds that have given returns above 10.93% in 6-months.

IDBI Gold ETF has given the highest return of 11.16, Axis Gold ETF has given a return of 11.10% and UTI Gold ETF has given return of 10.94% in 6 months. The returns are of these three ETFs are higher return than the Gold Index return of 7.03% in same period.

All gold exchange traded funds (Gold ETFs) are exchange traded funds whose objective is to mirror the domestic physical gold price by investing in gold bullion.

They are passive avenues of investment, as the fund managers do not have to choose anything to invest. Investing in a gold ETF is simple and easy, as it combines the flexibility of stock investment and buying gold.

Gold ETFs are basically units representing physical gold which are in non-physical form (paper or dematerialised form). One Gold ETF unit is equal to one gram of physical gold of very high purity.

Additionally they are easy to liquidate, Gold ETFs are listed and traded on the National Stock Exchange of India (NSE) and Bombay Stock Exchange Ltd (BSE) like a stock of any company. You can buy and sell gold ETFs just as you would trade in stocks.

When you actually redeem Gold ETF, you don't get physical gold, but receive the cash equivalent. Trading of gold ETFs takes place through a dematerialised account (Demat) and a broker, which makes it an extremely convenient way of electronically investing in gold.

At net asset value (NAV) gold ETF units are bought and sold on the stock exchnage. The NAV of Axis Gold ETF closed at Rs 48.1062, 0.64 % higher than previous day. UTI Gold ETF NAV ended at Rs 47.9104, 0.65% and IDBI Gold ETF NAV is Rs 5,131.6893, 0.65% higher on intraday basis.

Note that all gold ETFs are tracking the domestic gold index, the difference in returns within the category is due to tracking error which actually means the funds have diverted.

If you sell your gold ETF units before 3 years, tax applicable will be same as physical gold, as per income tax slab. But if you sell it after 3 years, a long term capital gains tax of 20% with indexation, i.e. adjusting for inflation on capital gains is applicable.

Disclaimer

Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn't guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.