Best ETFs in India: Top 7 gold Exchange-Traded Funds to consider for long-term investment. See full list here

Gold investments are rising amid global uncertainties, with ETFs seeing significant demand. October saw a net inflow of 1,961 crore, a 59 per cent increase from September. Gold ETFs provide stable returns, making them appealing for long-term investments.

Sharmila Bhadoria
Published13 Nov 2024, 01:52 PM IST
Gold ETF inflows have witnessed a huge surge in the month of October. Here are top seven high-performing gold ETF schemes for long term investment.
Gold ETF inflows have witnessed a huge surge in the month of October. Here are top seven high-performing gold ETF schemes for long term investment.

Gold Exchange-Traded Funds (ETFs) are attracting attention from investors as global uncertainties, geopolitical tensions, inflationary pressures, and market fluctuations drive interest in the yellow metal. Along with gold mutual funds and bonds, ETFs are a smart option for investing in gold.

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Among these options, gold ETFs have witnessed a surge in demand over the past few months. In October, Gold ETFs attracted net inflows of 1,961 crore, according to the recently released AMFI (Association of Mutual Funds in India) data.

The net inflow in gold ETFs surged by nearly 59 per cent, from 1,233 crore in September to 1,961 crore in October this year, marking the biggest-ever monthly net inflow for the category.

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The physical gold held by Indian gold ETFs has almost doubled over the last four years to a record high of 54.5 tonnes as of October 31, 2024, according to the World Gold Council. This surge indicates rising investment in the schemes.

Top Gold ETF Schemes for long term investment

Those investors considering adding gold ETFs to their portfolio for long-term investment can compare their returns over three or five-year periods. 

According to AMFI data, most gold ETF schemes have provided maximum returns of up to 14.5 per on investment over three years and 13.76 per cent over five years.

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Here is a list of the top seven gold ETF schemes that have delivered maximum returns on long-term investments over three- and five-year periods, according to valueresearchonline.

Gold ETF schemes3 year returns (%)5 year returns (%)
Aditya Birla Sun Life Gold ETF14.1813.61
Axis Gold ETF14.2713.57
LIC MF Gold ETF14.6113.76
Invesco India Gold ETF14.1513.08
ICICI Prudential Gold ETF14.2513.46
UTI Gold ETF14.2113.35
Kotak Gold ETF14.2013.56

The growing demand for gold ETFs in India aligns with the global trend, with gold ETFs gaining popularity in international markets as well, especially in China, as per another World Gold Council report released earlier this month. 

As of Wednesday, the cost of 24-carat gold stood at Rs.7,746.3 per gm. The cost of 22-carat gold is Rs.7,102.3 per gm. The gold prices have surged nearly 32.78 per cent in the last five years, according to Trading Economics. This trend is unlikely to reverse in the future.

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First Published:13 Nov 2024, 01:52 PM IST