Gold ETF: Low risk, high return...easy to buy and sell, know 10 benefits

By Newscrab Deskteam Sep 26, 2024, 10:02 IST

Amidst the rise in gold prices, Gold ETF has given a return of more than 26% in a year. Investing in it is quite easy and less risky. The biggest thing is that there is no fear of it being lost or stolen.

Business Desk: On January 1, 2024, gold was Rs 63,352, which has crossed Rs 77,000 on September 26 itself. Many market experts believe that gold can reach Rs 1 lakh per 10 grams very soon. If you also want to take advantage of this rise in gold, then Gold ETF (Exchange Traded Fund) can be a good option. Within a year, it has given more than 26% return. It can also be easily bought and sold like shares. In such a situation, let us know the method of investing in Gold ETF, its benefits and about the 5 highest returning funds...

What are Gold ETFs

Exchange traded funds i.e. Gold ETFs move on the rising and falling prices of gold. 1 Gold ETF unit means 1 gram of pure gold. Gold ETFs can be bought and sold on NSE and BSE just like shares. In this, you do not get gold, but the equivalent amount.

10 Benefits of Investing in Gold ETFs

  1. Gold purchased from Gold ETF is 99.5% pure.
  2. ETF units can be purchased just like shares.
  3. You can buy and sell it whenever you want, meaning there is high liquidity.
  4. You can start Gold ETF with very little money.
  5. You can also invest in Gold ETF through SIP (Systematic Investment Plan).
  6. Gold ETF can also be purchased online through demat account.
  7. There is no fear of Gold ETF being stolen or lost.
  8. Investing in this is not like the fluctuations in the stock market but is less.
  9. There is no making charge in Gold ETF like in physical gold.
  10. Gold ETF can be kept as security while taking a loan.

5 High Return Gold ETFs

  1. SBI Gold ETF- Return of 26.49% in one year and 92.66% in 5 years
  2. Axis Gold ETF- Return of 26.40% in one year and 91.84% in 5 years
  3. Nippon Gold ETF- Return of 26.34% in one year and 91.10% in 5 years
  4. Birla Sun Life Gold ETF- Return of 25.49% in one year and 93.31% in 5 years
  5. ICICI Prudential Gold ETF- Return of 23.55% in one year and 106.72% in 5 years