Best Gold ETF In India
January 12, 2012 | In: Investment
There are a lot of gold ETFs in India currently and more are going to open up soon, so the most important question that arise in our mind is that which is the best gold ETF in India? So let me help you answer that question in this post.
Best Gold ETF In India
Before I invest into any Gold ETF, I’d be looking at the following two comparisons among various gold ETFs : -
Expense Ratio
The expense ratio is the charges that the gold ETF fund is going to levy on you for managing the gold on your behalf. It is quite low when compared to mutual funds but charges any way hurt as they are on top of what you pay as a brokerage. I have made a nice looking chart comparing expense ratios of 9 actively traded gold ETFs.
If you look at the expense ratios, almost all of them are in the ratio of 1% which means there is hardly any difference as to which gold ETF would you pick. The heavy competition in the gold ETF field has led to everyone lowering their expense ratios in order to lure customers to manage their gold funds. Thus this criteria hardly helps us in identifying the best gold ETF in India.
Performance Ratio
Performance Ratio is the amount of returns it has given to the customers recently. I have done a comparison through a chart of how the gold ETF funds have performed in the last one year. This comparison is going to tell us which gold ETF funds are performing the best out there. I’ve made another nice looking chart for the comparison.
The chart is telling us that SBI Gold ETF and Reliance Gold ETF has clearly topped the performance chart with UTI Gold ETF, Quantum Gold ETF and Kotak Gold ETF following suit. However the difference in their performance is not a lot, infact it is hardly anything.
But as I say, each penny counts and thus it is always good to go with the best performing fund. So SBI and Reliance are the best gold ETF in India as of today. We will re-evaluate their performance in future and see if anything has happened that might lead to change of our claims.
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