Updated March 31st 2025, 16:55 IST
Gold Exchange-Traded Funds (ETFs) have become a favoured investment avenue for those looking to gain exposure to gold without the complexities of owning physical bullion. These funds invest in gold and trade on stock exchanges, mirroring the price movements of the precious metal.
As of March 31, 2025, gold prices have experienced a significant uptick, surpassing $3,000 per ounce. This surge is attributed to factors such as geopolitical tensions and shifts in monetary policies.
According to Reuters, Gold reached a record high on Monday and was on track for its biggest quarterly gain in over 38 years. The rise was driven by concerns that U.S. President Donald Trump's tariff plans could escalate the global trade war, leading to an economic slowdown and increasing demand for gold as a safe investment.
Gold ETFs are investment funds that hold assets in gold, aiming to replicate its market price. They offer investors a means to participate in the gold market without the logistical challenges of storing and securing physical gold. Additionally, Gold ETFs provide liquidity and transparency, as they are traded like stocks on exchanges.
Here are the simple steps to start with your investment using gold ETFs.
Open a Demat and Trading Account: To invest in gold ETFs, you'll need a Demat account to hold the units and a trading account to execute purchases and sales.
Choose a Reputable Gold ETF: Research and select a gold ETF based on factors like expense ratio, assets under management (AUM), and historical performance.
Place an Order Through Your Broker: Use your trading platform to buy gold ETF units, similar to purchasing shares.
Monitor Your Investment: Keep track of gold price movements and the performance of your chosen ETF to make informed decisions about holding or selling your investment.
The recent data highlighted several gold ETFs that have delivered notable returns over a year.
LIC MF Gold ETF: Achieved a 1-year return of 29.97%, 3-year return of 17.47%, and 5-year return of 13.87%.
ICICI Prudential Gold ETF: Reported a 1-year return of 28.81%.
Aditya Birla Sun Life Gold ETF: Offered a 1-year return of 28.69%.
.Axis Gold ETF: Reported a 1-year return of 28.29%.
Investing in gold ETFs offers a convenient and efficient way to gain exposure to gold's price movements without the challenges of handling physical gold. Given the current economic landscape and gold's rising prices, gold ETFs can serve as a valuable addition to an investment portfolio.
However, it's essential to conduct thorough research and consider consulting with a financial advisor to ensure alignment with your financial goals and risk tolerance
Published March 31st 2025, 16:55 IST