Fundwire

Gold up 105%: 4 best Gold ETFs riding the boom

Let's also understand the different modes of gold investing and which are the factors you need to look at before investing in a Gold ETF

Gold up 105%: 4 best gold ETFs riding the boomAdobe Stock

हिंदी में भी पढ़ें read-in-hindi

Gold has had a phenomenal run in the past three years, surging 104.8 per cent (around 27 per cent annualised returns), according to the World Gold Council. The rally has been fuelled by real and persistent global concerns, from escalating geopolitical tensions in the Middle East to trade friction between major economies. In such uncertain times, gold typically reclaims its safe-haven status. And for Indian investors, it’s once again becoming more than just a hedge; it's emerging as a meaningful asset class to include in a diversified portfolio. So, if you’re looking to invest in gold today, the choice of vehicle matters just as much as the timing. 1. SGBs For long-term investors, Sovereign Gold Bonds (SGBs) have been the gold standard. They offer 2.5 per cent annual interest, zero capital gains tax if held till maturity and are backed by the Government of India. For anyone planning to stay invested for at least eight years, this was often the smartest gold bet. However, SGBs were the best option. ‘Were’ is the operative word here. Why? Fresh issues are currently unavailable and most secondary market bonds trade at premiums or suffer from low liquidity. You might not always get the series you want, at the price you want. These issues have put them out of reach for many investors — at least for now. Which is why it’s time to consider the next best options: Gold ETFs and Gold FoFs (funds that invest in other funds). 2. Gold FoFs Gold fund of funds (FoFs) are mutual funds that invest in gold ETFs. They are easy to buy and don’t need a demat account. You can set up SIPs, redeem units online and manage them like any other mutual fund. But convenience comes at a cost. Gold FoFs charge their own expense rati


Other Categories