Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations

Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Stable returns are important in any investment. But if we talk about equity and an option tracking the price of a commodity, there is no guarantee of stable returns in the short term.

But if we stick to our investment for the long term, there is a high possibility of stable returns.

Among equity mutual funds, large cap funds are considered the most stable.

The reason is they have at least 80 per cent of their investments in large cap stocks.

In terms of commodities or investments tracking the price of a commodity, gold ETFs are also considered a stable option in the long run.

In this write-up, know more about gold ETFs and large cap mutual funds, which have been the top gold ETF and the large mutual fund in terms of annualised returns (CAGR) in 10 years, and what Rs 11 lakh investment in each of them has given in 10 years.   
 

Gold ETF

Gold ETFs are like any other exchange-traded fund that tracks the price of 99.5 per cent purity of gold.

One Gold ETF unit is equal to 1 gramme of gold.

Investment in gold ETF combines the flexibility of stock and gold investments.

Investors who don't want to invest in physical gold due to the storage hassles, or doubt about the purity of gold can invest in gold ETFs.

One needs to have a demat account to trade ETFs.

The price of the net asset value (NAV) of a gold ETF keeps changing during trading hours in the same way as the price of a stock.

Large cap mutual funds

Large cap mutual funds need to have 80 per cent of their investments in large cap stocks.

Large cap companies are India's top 100 companies in terms of market capitalisation.

These companies are fundamentally strong, have large businesses, and can face market fluctuations in a better way than mid and small caps.

Investors with relatively low-risk appetite can invest in large cap mutual funds.

But since these are market-linked, they carry risk and are considered good for the long term. investment.   

Top gold ETF in 10 years

The top gold ETF in terms of highest annualised returns (CAGR) is LIC MF Gold ETF.

Top large cap mutual funds in 10 years

The top large cap mutual fund with highest annualised returns is Quant Focused Fund - Direct Plan.

LIC MF Gold ETF

The ETF has given 10.86 per cent annualised return in 10 years.

It has assets under management of Rs 151 crore, while its net asset value (NAV) is Rs 7,236.2648. 

Benchmarked against the domestic price of gold, the ETF has given 7.15 per cent annualised return since its inception in November 2011.

At an expense ratio of 0.41 per cent, the ETF has Rs 10,000 as the minimum investment.

Quant Focused Fund - Direct Plan

The large cap mutual fund has given 18.30 per cent annualised return in the 10-year period. 

The fund has AUM of Rs 1,183 crore, while its NAV is Rs 97.7323.

Benchmarked against NIFTY 500 TRI, the fund has given 18.92 per cent annualised returns since its inception in January 2013.

At an expense ratio of Rs 0.66 per cent, the fund has Rs 1,000 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment.  

The main holdings under its 18-stock portfolio are ITC, RIL, Grasim Industries, LIC, Jio Financial Services, NTPC, and HDFC Bank. 

Current value of Rs 11 lakh investment in LIC MF Gold ETF in 10 years

The estimated return on a Rs 11 lakh investment in the ETF is Rs 19,84,192.

Current value of Rs 11 lakh investment in Quant Focused Fund - Direct Plan in 10 years

The estimated return on a Rs 11 lakh investment in the top large cap mutual fund is Rs 48,05,275.