The top 5 Gold ETFs you should invest in 2020

With Gold ETFs, you can now invest in gold – almost at the same market price as the actual metal. Here are the top five best performing gold ETFs to look out for in 2020.

Oct 30, 2020 08:10 IST India Infoline News Service

Planning to invest in gold without purchasing the yellow metal? Then Gold Exchange Traded Funds (or ETFs) are your best avenue. Traditionally, Indian investors have placed their trust in gold in the form of jewelry or even gold coins.

With Gold ETFs, you can now invest in gold – almost at the same market price as the actual metal. Just like any other equity stocks, you can also trade in Gold ETFs at the stock market.

Here are the top five best performing gold ETFs to look out for in 2020.

1. Nippon Gold ETF

Currently the fund with the highest AUM (Assets Under Management) or fund size valued at over Rs2,290cr, Nippon Gold ETF is an open-ended fund with a 1-year return of 26.33% and a 3-year return of 11.33%.

This means that if you invest a monthly sum of Rs5,000 in this fund, you can earn around Rs67,797 at the end of one year – and approximately around Rs235,566 after three years.

Image source: Financial Express

With a current NAV price of Rs44, this fund is being managed by Reliance Mutual Fund and has been operational in the market since February 2007.

2. SBI Gold Fund

SBI Gold Fund – previously SBI GETS – has been providing its investors an annual return of 5.2% since its launch in September 2011. With a current NAV of approximately Rs15.8, this gold ETF has net assets worth over Rs822cr.

The 1-year return for this fund is currently around 27.43% - while its 3-year and 5-year returns are 11.08% and 8.16% respectively. This means that a monthly investment of Rs5,000 can fetch you around Rs67,899 at the end of one year – and around Rs411,000 after five years.

Image source: Mint

Rated at a “moderately high” risk level, SBI Gold ETF has zero exit load (if you have invested for more than one year) and a minimum amount of Rs500 per month – if you plan to go the SIP (Systematic Investment Plan) way.

3. Aditya Birla Sun Life Gold ETF

With a current AUM of almost Rs80cr, the Aditya Birla Sun Life Gold ETF is currently priced at a NAV of Rs4,669 (as of October 20th, 2020). This growth-oriented fund has been providing good returns of around 26.88% (for 1 year) – along with CAGR returns of 18% (for 3 years) and 12.36% (for 5 years).

In other words, if you invest Rs1,000 in this ETF through a monthly SIP, you can earn around Rs13,594 at the end of one year – and Rs47,283 after three years.

Image source: Paisabazaar
Set up in April 2011, this ETF is managed by Aditya Birla Mutual Fund company and has touched a 52-week highest NAV of INR 5400 this year.

4. Invesco India Gold ETF

Managed by Invesco Mutual Fund company, this Gold ETF is another growth-oriented fund that is providing good returns to its investors. Trading at a NAV of Rs4,590 (as of 20th October 2020), Invesco Gold ETF has given returns of 26.78% in one year – along with a healthy CAGR of 18% for three years and 12.38% for five years.

For a monthly SIP investment of just Rs500, you can earn Rs6,794 approximately at the end of the first year – and Rs41,250 at the end of five years.

Image source: MarketScreener

Launched in January 2010, this ETF has an AUM or fund size of Rs36.6cr as of March 2020.

5. HDFC Gold ETF

HDFC Gold ETF is another reliable fund for Indian investors in 2020. With a growing AUM and fund size of Rs615cr (as of March 2020), HDFC Gold ETF is a dividend-paying fund that has provided good returns of around 26% in the first year. The fund also scores well for long-term investors with its three-year CAGR of 17.62% and a five-year CAGR of 12.32%.

In simple language, if you invest Rs5,000 each month into this fund, you can earn around Rs67,700 in a year – and Rs4,11,867 at the end of 5 years.

Image source: Paisabazaar

HDFC Gold ETF is currently trading at Rs4552 on NSE (as of 20th October 2020).

Conclusion

All that you need to invest in Gold ETFs in India is a Demat and an active trading account. Before investing, examine the performance of each ETF over the last few years – and choose the right one that will meet your investment goals.

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