Gold: A Safe Haven Investment
Gold, a precious metal, has provided impressive returns to investors. Wealth advisors often recommend conservative investors to invest in gold as a safe haven, while equity is reserved for more aggressive investors.
For traditional middle-class investors, physical gold is a good investment option. However, it comes with some charges and storage costs. On the other hand, investing in digital gold allows you to ride its growth without incurring any processing or other charges.
On a year-on-year basis, gold has given a 25% return. As RBI has not issued gold sovereign bonds (SGBs) in a long time, the best way to get exposure to investing in gold is through gold ETFs.
What are Gold ETFs?
Gold ETFs are ETFs with gold as the underlying asset. The scheme issues units against gold held. Each unit represents a defined weight in gold, typically one gram. The scheme holds gold in the form of physical gold or gold-related instruments approved by SEBI.
These schemes can invest up to 20% of net assets in gold deposit schemes of banks. The price of ETF units moves in line with the price of gold on the metal exchange. There are a total of 20 schemes with net assets under management of ₹58,887 crore as of March 31, 2025.
Returns on Gold ETFs
As we can see in the table above, most gold ETFs have given similar returns, ranging from 21 to 22% per annum.
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Reference : https://www.livemint.com/money/personal-finance/gold-etfs-delivered-21-percent-annualised-return-in-the-past-3-years-see-details-akshaya-tritiya-2025-11746013581073.html
