3 low-cost Gold ETFs you may consider for your allocation in gold this festive season

Zee Business has compiled a list of gold ETFs that you can consider investing in as part of your gold holdings.

Investors can invest in the scheme by deploying a minimum sum of Rs 5,000. Image source | Pexels

Gold ETFs have emerged as a popular investment option for the high liquidity and price competitiveness they offer. Zee Business has compiled a list of gold ETFs that you can consider investing in as part of your gold holdings.

Gold ETFs tracking the physical gold price in the domestic market offer market-linked returns. In such a scenario, the expense ratio comes into play. A lower expense ratio, or the amount charged by the fund manager to manage your passive investment, should be reasonably low to offer you a high return consequently.

For the collation of gold ETFs, inputs from investment research firm Value Research have been considered:

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LIC Mutual Fund Gold ETF

The fund has an asset base of Rs 101 crore and has been in existence for 12 years. Trailing returns of the fund over 1 year, 5 years and 10 years are 18.25 per cent, 12.92 per cent and 6.73 per cent, respectively. The fund, as of September 30, carries an expense ratio of 0.41 per cent. Its NAV as of November 8 stood at Rs 5,542.

ICICI Prudential Gold ETF- Regular Growth plan

It is a 13-year-old ETF from the house of ICICI Prudential Mutual Fund. The asset size of the fund is Rs 3,979 crore with a 98 per cent allocation to commodities. The fund’s trailing returns over 1 year, 5 years, and 10 years are 17.26 per cent, 12.56 per cent, and 6.32 per cent, respectively.

Investors can invest in the scheme by deploying a minimum sum of Rs 5,000.

NAV of the ETF as on November 8 stood at Rs 52.76, while the expense ratio is 0.5 per cent.

Axis Gold ETF

The gold ETF offered by Axis Mutual Fund commands an asset size of Rs 737 crore and has been in existence since November 2010. For investing in the fund, you need to shell out a minimum of Rs 5,000. The expense ratio of the fund is 0.54 per cent.

The fund’s trailing return over 1 year, 5 years, and 10 years is 17.47 per cent, 12.81 per cent, and 6.22 per cent, respectively.

The NAV of the fund as on November 8 was Rs 51.61.

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