Gold ETF’s have become one of the hottest things on Wall Street. They are new to the market in general, and there are people from everyone interested in them. It is no wonder, many people are curious about the gold ETF’s that are offered in India. After all, India is a part of the world where a lot of gold is discovered. One might suspect that an investment in the gold market of this country might be about to outperform the market in general.
There is some difficulty in trying to get information on the ETF’s of another country. The reason for this is simply because they are not the domestic funds traded. However, with some simple online research, you can still find the gold funds that trade in India. To make the process even simpler, we have provided a list of the Indian gold ETF’s below.
1) UTI Gold Exchange Traded Fund- This fund is part of the UTI mutual fund family. It is the first fund listed here because it is the one that was the earliest on the scene. It was created at the start of the new year in 2007. The fund has an expense ratio of 2.5%. It measures gold at about 1 gram of gold for its pricing unit.
2) Kotak Gold Exchange Traded Fund- This fund was the next in terms of when it was created. It is very similar to the first fund. It carries the same expense ratio of 2.5%, and it measures gold at approximately one gram for its pricing purposes. This fund was created in June of 2007.
3) Reliance Gold Fund- Following the trend of the first two, this fund has the same expense ratio and measurements for pricing purposes. It was funded in November of 2007.
4) Quantum Gold Fund- Finally a fund was created that changed the mold that the other funds had been following. This fund was created in early 2008, but it only carries an expense ratio of 1.25%, or about half that of the others. The fund also measures gold differently for pricing purposes. The fund measures gold at about half a gram for pricing purposes.
5) Benchmark Mutual Fund- This fund invests in the gold benchmark. That is to say that it invests directly into the Indian gold market for the investor. There are no side investments in gold companies or cash. The expense ratio for this fund is even lower than that of the others (1%) because of the cost savings associated with direct investing.
6) SBI Gold ETF- This is the latest fund to the scene. It was founded in 2009 and more closely mirrors the early funds both in pricing measurement and expense ratio.
There are currently only six gold ETF funds in India. That number is expected to grow as the demand from investors grows as well. If you are very interested in this market, then you will want to make sure that you keep an eye on this market for any changes that could be coming.
