Gold ETF Funds in India

So far, finance synergy hadn't featured any article on gold etf funds in India. Though there was an article on how to buy gold coins in India. So I have decided to write this post.

The mutual fund market in India has seen a rapid growth during the last decade. Fund houses started a number of schemes and few gold etf funds in India were also launched. Traditionally, gold was more popular in physical forms. But now, more retail investors in have started investing in gold etf funds in India.

There are over 30 Asset management companies and so far, 11 gold ETF funds in India. www.indotogelx.com have listed them in the order of returns over last 1 year, as on 18th Sep 2011. Though, there isn’t any significant difference in the returns because the underlying is gold for all these funds.

List of All GOLD ETF Funds in India

1. Reliance

Reliance Gold ETF was launched on Nov 2007 and its one year return is 41.33 as on 18th Sep 2011. The expense ratio of this ETF is 1.

2. Kotak

This ETF was launched in July 2007 and its one year return is 41.25 and expense ratio of this ETF is also 1.

3. Quantum

It was launched in Feb 2008 and its one year return is 41.24. The expense ratio of this ETF is again 1.

4. UTI

UTI Gold ETF was launched in March 2008. The one year return of this fund is also 41.24 and expense ratio is 1.

5. Religare

This ETF was launched in Feb 2010. The one year return of this fund is 41.18. Expense ratio is again 1.

6. SBI

The SBI Gold ETF was launched in April 2009 and one year return of this fund is also 41.18. However, the expense ratio is slightly more than other funds ie 1.06.

7. HDFC

It was launched in July 2010 and one year return is 40.81. The expense ratio is 1.

8. Goldman Sachs

This ETF fund was launched in Feb 2007 and its one year return is 40.60. The expense ratio is again 1.

9. ICICI Prudential

This gold etf fund was launched in july 2010 and its one year return 40.39. The expense ratio is 1.5 which is highest.

10. Axis and Birla Sun life

These two ETFs are relatively new and haven’t yet completed and year. Hence the 1 year return is not available. Axis ETF was launched in Nov 2010 and Birla Sun life ETF in May 2011.

Conclusion: All Gold ETF funds in India have almost similar returns because they all invest in gold. You can invest in any of these ETF funds. However, the expense ratio of ICICI prudential gold ETF is highest which means you pay highest charges towards fund management etc.