Comparing all the Gold ETF’s available in India currently to find which one is the best gold ETF of India to invest in 2020 for retail investors.
Gold is the hottest discussion these days. If you believe BofA, they even are predicting gold price can touch 82k. Here is a report on TimesOfIndia. So, I thought let’s find the best Gold ETF to invest in 2020.
I am also getting queries about it is the right time to invest in gold and Gold ETF investment. I don’t think this may be the right time to jump into the Gold investment. However, a small SIP in Gold ETF may be a better choice for diversification purposes.
Gold ETFs Available in 2020
We get the Gold ETFs from the NSE Website directly.
| Fund House | NSE Symbol | Average Traded Qty |
|---|---|---|
| Axis Gold ETF | AXISGOLD | <5k |
| Birla Sun Life Gold ETF | BSLGOLDETF | <500 |
| Canara Robeco Gold ETF | CANGOLD | <500 |
| HDFC Gold Exchange Traded Fund | HDFCMFGETF | >1L |
| ICICI Prudential Gold Exchange Traded Fund | IPGETF | <500 |
| IDBI Gold ETF | IDBIGOLD | <500 |
| Kotak Gold Exchange Traded Fund | KOTAKGOLD | >3L |
| Quantum Gold Fund (an ETF) | QGOLDHALF | <5k |
| Reliance Gold Exchange Traded Fund | RELGOLD | <500 |
| Religare Gold Exchange Traded Fund | RELIGAREGO | <500 |
| SBI Gold Exchange Traded Scheme | SBIGETS | <500 |
| UTI GOLD Exchange Traded Fund | GOLDSHARE | <5k |
| Reliance ETF Gold BeES | GOLDBEES | >5L |
*Average traded volume data is per NSE Website. You can search for the symbol on the NSE website to check the volume for the ETF for the day.
The Best Gold ETF Fund 2020
The vital criterion to select the best Gold ETF is to invest in is the ETF, which has a lot more trading volume. If the average traded volume is meager, when you want to buy, you may end up paying a lot more because of the lesser number of sellers available. Similarly, when you want to exit, the same may happen on the downside.
Based on the above criteria, we only have a couple of options.
- Reliance ETF Gold BeES (GOLDBEES)
- Kotak Gold Exchange Traded Fund (KOTAKGOLD)
- HDFC Gold Exchange Traded Fund (HDFCMFGETF)
According to ValueResearchOnline, the expense ratio of Kotak Gold Exchange Traded Fund (KOTAKGOLD) is lower than that of the HDFC Gold Exchange Traded Fund (HDFCMFGETF) and Reliance ETF Gold BeES (GOLDBEES).
Undoubtedly the best Gold ETF to invest in 2020 is KOTAKGOLD by Kotak Mutual Fund House.
Final Thoughts
As always, this isn’t a recommendation of any fund or ETF. The emphasis is on the process. The ETFs may be doing well now, or have a better trading volume now, but when you want to invest, use the same process, and find the best ETF at that time to invest. Use ValueResearchOnline and NSE Website as and when you want to invest in a Gold ETF in 2020.
Sir kotaketf is good bcoz of expense ratio..but what is important of expense ratio in gold ETF n please add in details…
Surprisingly GOLDBEES – which is a Gold ETF with highest liquidity – is missing! Any specific reason?
Missed it as on the NSE website it is at the end after some weird Nifty ETFs by Reliance Nippon asset management company.
What about Sovereign Gold Bonds issued by GoI? No expense of ETFs plus 2.5% Return assured apart from Gold RoR? Please let me know what is your opinion.
I am not a fond of assured returns if it comes at a the cost of capped return when market starts to outperform.
Please elaborate. How is it a capped return?
How can the return be assured will answer your question? Read the fine details and you will understand the assured returns means they will have gold equivalent.
Do you really think it is prudent investing in gold etf at this time when gold is at its all time highs? It seems like a value trap.
No I don’t think so and I have shared the same in the start of the article itself. A small SIP is always an option for those who want to diversify.
Any specific reason why GOLDBEES is not listed in this article?
Exactly. Traded volume is 97 lakhs for GOLDBEES vs 1.58 lakhs for KOTAKGOLD.
https://www.nseindia.com/get-quotes/equity?symbol=GOLDBEES
The article is still not updated to include GOLDBEES. People who ask questions and base their investment decisions on forums need to seriously think. Rather than pose a free question to an expert, it’s better for them to hire a advice only financial planner.
Missed it because on the NSE website it is listed at last after Nifty ETFs. Not sure why. Added it to the list but still the better choice is KOTAKGOLD because of expense ratio.