Dhanteras 2023: With 22% one-year returns, Gold ETFs likely to remain flavour of the season
Dhanteras is just around the corner and one can sense the frenzy among investors to buy gold. But it is not just physical gold that is drawing investor interest, there is a growing appetite for investing in gold ETFs (exchange-traded funds).
Gold ETFs are not only considered to be safe investments governed by tight regulations, but some of these ETFs have been generating one-year returns of more than 22 per cent.
According to data available on the AMFI (Association of Mutual Funds in India) website, gold ETFs witnessed net inflows to the tune of around Rs 1660 crore during July-September 2023 period, as against net outflows of close to Rs 165 crore during July-September 2022.
The net inflows into Gold ETFs have increased by nearly 457% from Rs 298 crore registered during April-June 2023 period. The net assets under management (AUM) under Gold ETF as on September 30, 2023, grew by nearly 20 per cent to touch Rs 23,799 crore, as against Rs 19,861 crore same period last year.
Also Read: Is it the right time to invest in Gold, how much and in what form – Physical, ETF, or Gold MFs?
There are currently 13 gold ETFs in the domestic mutual fund industry and LIC MF gold ETF was the top performing fund basis 1-year returns generating 22.46 per cent as on October 31, 2023, as per data report by ICRA Analytics, the analytical wing and wholly owned subsidiary of ICRA Ltd.
“We have considered 11 gold ETFs out of the 13 currently available in the market as DSP Gold ETF and Mirae Asset Gold ETF have not completed one year as on October 31, 2023. A quick analysis of the returns generated by the other gold ETFs suggests that the average 1-year returns across most of these funds range from around 20.6% to 22.46% while the 5-year CAGR
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