As Akshaya Tritiya approaches, Zerodha Fund House, India’s only passive AMC, highlights the significance of this auspicious day and the potential of gold investments. Akshaya Tritiya, falling on 10th May this year, holds great cultural and religious significance in India, marking prosperous beginnings.
Various options are available for investing in gold for individuals looking to diversify their investment portfolio or hedge against inflation. Here are some popular options:
● Physical gold
● Sovereign Gold Bonds
● Digital Gold
● Gold ETFs
When choosing a gold investment option, factors such as liquidity, storage costs, taxation, safety and investment horizon are typical considerations.
Inflow into Gold ETF recorded significant increase during and post pandemic
Preference for Gold during the time of adversity is also notable from the investment inflow into Gold ETFs during 2020 when the world was engulfed with pandemic of Covid.
From an analysis for the period between 2019 to 2023, yearly growth in assets under management of Gold ETFs have been on the rise. Gold ETF Asset Under Management increased significantly and by around 150% from INR 5,527.76 crores in December 2019 to 13,819.39 crores in December 2020 during the pandemic period. The AUM in Gold ETFs has been on a growth trajectory since then. As of December 2023, the AUM in Gold ETFs is valued at INR 25,959.02 cr, which is substantial growth of 27.29% from December 2022 and 87.84% from December 2020. (Source: MFI Explorer by ICRA Analytics)
Vishal Jain, CEO, Zerodha Fund House said, “Investing in gold ETFs offers unparalleled advantages including liquidity, cost-effectiveness, and security. By investing in gold ETFs like Zerodha Fund House’s Gold ETF (NSE, BSE symbol - GOLDCASE), investors can eliminate the hassle of storage, purity concerns and insurance associated with physical gold, while enjoying the flexibility of investing on the stock exchange.”
Zerodha Gold ETF (NSE, BSE symbol GOLDCASE) is a passively managed scheme from Zerodha Fund House. As on May 8, per AMFI data <Source: https://www.amfiindia.com/ter-of-mf-schemes>, Zerodha Gold ETF (NSE, BSE symbol GOLDCASE) is the cheapest gold ETF in India from an expense ratio point of view and available at an affordable price.
Product Label and Risk-o-meter of scheme
Zerodha Gold ETF
(An open-ended scheme replicating/tracking domestic prices of Gold )
This product is suitable for investors who are seeking*: | Risk-o-meter of the scheme | Risk-o-meter of the Benchmark (Domestic Price of Physical Gold) |
Long term capital appreciation |  | |
Investment in gold in order to generate returns similar to the performance of the gold, subject to tracking errors. | ||
| Investors should understand that their principal will be at High Risk |
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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