Best Gold ETF’s in India to invest in 2013

Best Gold ETF's in India to invest in 2013 for long termBest Gold ETF's in India to invest in 2013

Several readers have been posting comments or sending emails asking whether there are any best gold ETF’s in India to invest in 2013. While all gold ETF’s in India track international gold prices and gold as underlying asset, there is small variation of returns. There are few factors to be looked while investing in the best gold ETF’s in India.

What are Gold ETF’s?

You might be aware that gold can be invested in electronic form through ETF’s. These gold ETF’s are available in the denomination of 1 gram value. You can buy any number of gold ETF units in a day when market is open. These are traded in stock exchanges on NSE and BSE. The price would fluctuate based on the price fluctuations of gold during the day.

Also read: Gold Mutual funds Vs Gold ETF's – Which is better option?

Are there any best Gold ETF’s in India?

Since all Gold ETF’s in India track underlying asset as gold, the returns would be almost same. However if you are planning to invest in gold ETF’s just keep three letters in mind. P.A.E. 1) Performance of gold ETF’s in last 3-5 years 2) Assets under management 3) Expense ratio of such Gold ETF’s

1) Performance of Gold ETF’s – What I mean here is to check the performance of gold ETF’s in long run. Do not buy gold ETF’s which just took birth or which have been there for short term. The longer the Gold ETF scheme existence the better to assess the performance of Gold ETF whether it is good or bad. 3 to 5 years performance can be considered as one of the parameter to say whether it is good gold ETF or not.

2) Assets Under Management (AUM) – AUM refers to the amount invested by investors. The higher it is the better it is as it shows the confidence investors has with such Gold ETF scheme.

3) Expense Ratio of Gold ETF – All gold ETF’s average expense ratio is around 1% of their AUM. Means every year, 1% of the returns would be reduced from your returns and they are used as expenses for management. Investing in low expense ratio would help you to increase your returns.

Best Gold ETF's in India to invest in 2013

We have analyzed all these 3 parameters and separated the top Gold ETF’s in India with others.

Best Gold ETF's in India to invest in 2013

Also read: e-Gold Vs Gold ETF – Which is better?

Why do we need to invest in Gold ETF’s?

There are various ways to invest in gold. However, instead of physical gold, investing in e-gold or Gold ETF’s is best investment. Currently investment in e-gold is offered by NSEL only. Since NSEL has not yet come out of mess, investing in e-Gold would be riskier now. Instead invest in Gold ETF’s. Investing at least 10% of your portfolio in gold is always better as it gives long term appreciation and it would be useful to diversify your portfolio. We should not forget that Gold has provided a return of 20%+ in last 10 years.

Conclusion: Choosing a best gold ETF’s to invest would help you in longer run. Considering good performance Gold ETF, high AUM and low expense ratio Gold ETF is a key for the success of investment in gold.

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Best Gold ETF's in India to invest in 2013


Suresh KP


  1. Dear Suresh,

    please guide for investment in mutual funds.Which is the best mf in equity for 2014.I want to start by SIP.Also like to buy gold ETF.

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