Top Gold ETF vs Top Index Mutual Fund: Know which has given higher return on Rs 12,500 monthly investment in 10 years
Top Gold ETF vs Top Index Mutual Fund in 10 Years: Gold ETFs track the price of physical gold of very high purity, while index mutual funds follow the indices.
Top Gold ETF vs Top Index Mutual Fund in 10 Years: Gold exchange traded funds (ETFs) and index mutual funds are passive mutual funds with a low expense ratio. While gold ETFs track the price of physical gold, index funds follow an index. Since they are passive funds, a lot of beginner investors with little knowledge of mutual funds or those who don't have time or interest to follow their mutual fund investments start their investment journey with them. In this write-up, know which has been the best gold ETF and the best index mutual fund in 10 years, and which of them has given a higher return on Rs 12,500 monthly investment in that period.
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What are gold ETFs?
Gold ETF is an exchange traded fund that can be traded on any exchange like any other ETF or stock. They track the price of domestic physical gold of very high purity.
What are gold ETFs?
One Gold ETF unit is equal to 1 gramme of gold and is backed by physical gold of very high purity. Gold ETFs hold assets like gold bullions or future contracts.
What are index funds?
Index mutual funds are passive funds where the fund manager follows an index. If the composition of stocks changes in an index, the fund manager also changes the stocks in the fund. Mutual fund investment beginners who don't have much knowledge about selection of funds or investors who don't have time or interest to actively follow their mutual fund investments opt for index funds.
What are index funds?
Since index funds follow an index, they can give steady returns in the long run. As BSE Sensex and Nifty 50 have been rising fast in the recent past, many index funds following them have also been performing well.
Top gold ETF in 10 years
LIC MF Gold ETF is the top-performing gold ETF in 10 years. It has given 12.82 per cent annualised SIP returns in the 10-year period (As per Value Research data).
The ETF has a net asset value (NAV) of Rs 6,890.0566, while its assets under management (AUM) is Rs 137 crore.
Top gold ETF in 10 years
It has given 6.80 per cent annualised returns (CAGR) since its inception in November 2011.
At an expense ratio of 0.41 per cent, the minimum investment in the ETF is Rs 10,000.
Top Index Mutual Fund in 10 Years
ICICI Prudential Nifty Next 50 Index Direct-Growth is the top index mutual fund in 10 years in terms of highest SIP returns.
It has given 19.43 per cent annualised SIP returns in the 10-year time frame (As per Value Research).
Top Index Mutual Fund in 10 Years
The index fund has AUM of Rs 6,863 crore, while its NAV is Rs 71.9.
Top Index Mutual Fund in 10 Years
Benchmarked against NIFTY Next 50 TRI, the fund has given 17.31 per cent annualised return since its inception in January 2013.
With an expense ratio of 0.31 per cent, the fund has Rs 105 as the minimum SIP and lump sum investment each.
Current value of Rs 12,500/m investment in top gold ETF in 10 years
A Rs 12,500 monthly investment in LIC MF Gold ETF in 10 years, or a total investment of Rs 15,00,000, has turned into Rs 29,25,466.
Current value of Rs 12,500 monthly SIP in top index fund in 10 years
A Rs 12,500 monthly SIP in ICICI Prudential Nifty Next 50 Index Direct-Growth has given a total of Rs 41.75 lakh in 10 years.