Gold Exchange Traded Funds (ETFs) are based on gold bullion. They are simple investment instruments that combine the freedom of stock investments with the simplicity of gold investments. Individuals seeking investment alternatives might look into Gold ETFs, which combine the freedom of stock investing with the simplicity of gold investing.
Gold ETFs are similar to stock exchange-traded funds in that they allow you to acquire shares of a firm. ETF helps you to diversify your investment portfolio. As Gold ETFs invest in as invest specifically in the yellow metal, it lowers your dependence on the industry. And because of its gold pricing, there is complete transparency on the holdings of an ETF.
You can invest in Gold ETF online. To invest in gold ETFs, all you need is a trading and Demat account. Purchasing ETFs is straightforward if you are already familiar with stock trading.
5 Top Performing ETF In Last 1 Year - Annualised Returns
|IDBI Gold ETF||22.60%||18.23%||12.63%|
|Invesco India Gold ETF||22.20%||18.43%||12.46%|
|SBI ETF Gold||22.06%||18.32%||12.32%|
|Aditya Birla Sun Life Gold ETF||22.03%||18.39%||12.42%|
|ICICI Prudential Gold ETF||22.03%||18.04%||12.07%|
Source - Value Research
How it Better Than Mutual Fund and Gold Investment?
Gold ETFs are one of the most cost-effective methods to diversify your investment portfolio. Investing in gold ETFs is safer than coins and jewelry. When compared to real gold investments, gold ETFs have substantially lower expenditures.
Investors get the benefits of gold investment without having to be concerned about the protection of your valuables. Unlike traditional mutual funds, which need redemption through the fund company, ETFs may be bought and sold immediately on stock exchanges, much like individual equities.
It's also a lot more convenient to purchase and sell gold through an ETF than it is to buy and sell actual gold. The price is clear, and you don't have to worry about the gold's quality. Finally, ETFs have a lower expense ratio than other funds since they are passively managed.