I would like to invest in a gold ETF for the long-term, mainly for the purpose of diversification. I have made up my mind to allocate five per cent of my portfolio to this asset class. Could you please let me know the best gold ETFs with their comparative cost effectiveness and load package?
- Dipinder Kumar
It is a wise decision to allocate just a small portion of your portfolio to gold ETFs. Gold ETFs should not be looked at as a mainstream investment. Currently, there are six gold ETFs operating in the market and they are all alike. They are structured in a way that they generate exactly the same return. The NAVs of these funds move according to the market price of gold; less the expenses. All gold ETFs currently charge around one per cent as expenses. So you can choose any fund and invest in it.