Top 5 Best Gold ETF in 2023

 

There are several ways of buying gold for investment purposes. Gold ETFs (Gold Exchange Traded Funds) are one of the easiest and safest ways. In this blog, let’s discuss these asset classes and get a list of the best Gold ETFs in India for 2023.

Gold ETF meaning

Gold ETFs are a type of Exchange Traded Funds. These are passively managed funds. You can include Gold ETFs in your portfolio to diversify it, as these can be a good way to hedge against market volatility.

How do Gold ETFs work?

Gold ETFs invest in gold bullion (99.50% pure). The ETF provider stores this physical gold in vaults with the custodian bank.

Gold ETFs track the price of such physical gold. Investors of these ETFs gain when gold price moves up without actually having to hold it in the physical form.

 

BEST GOLD ETFS

1. IDBI Gold exchange-traded fund

2. Axis Gold ETF

3. Kotak Gold ETF

4. SBI ETF Gold 

5. ICICI Prudential ETF 

​​Benefits of investing in Gold ETFs

1.      Since Gold ETFs are stored in a digital form in your Demat account, you need not worry about theft or paying storage costs.

2.    You can access these as per your requirement without having to depend on your locker provider.

3.    Gold ETFs are liquid, just like stocks. You can buy and sell them as and when you need them.

4.    Since ETFs are available in the form of units, you can buy your desired quantity at low costs. 

5.    Gold ETFs act as a hedge against market volatility giving your portfolio some stability.

6.    Gold ETF in India doesn’t have entry and exit loads.

7.    Investors can avail a loan by pledging their ETFs as security with financial institutions.

8.    You can pledge Gold ETF units with banks as collateral to avail a loan.