Top Gold SIP ETF vs Top Large Cap SIP Mutual Fund in 5 Years: Which has given higher return on Rs 15,000 monthly investment; see calculations
Top Gold ETF vs Top Large Cap Mutual Fund in 5 Years: Gold ETF tracks the price of physical gold, while large cap mutual funds have most of their investments in large cap firms. Both are considered stable sources of investment in the long-term horizon.
Top Gold ETF vs Top Large Cap Mutual Fund in 5 Years: Investors who don't want to invest directly in gold but want to get the benefit of its price appreciation invest in instruments like gold ETFs (Exchange-traded Funds). Large cap mutual funds, through considered high risk, can provide stable returns in the long run due to the majority of their investments in fundamentally strong companies. Investors with a long-term investment horizon can invest in either of them. In this write-up, know more about gold ETF and large cap mutual funds, the top gold ETF and the top large cap mutual fund in 5 years in terms of highest annualised SIP returns (XIRR), and which of 2 has given higher returns on Rs 15,000 monthly investment.
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What are gold ETFs?
Gold ETFs are like any other ETFs that can be traded on a stock exchange. While other ETFs track index, gold ETFs follow the price of physical gold of very high purity. One gold ETF unit is equal to 1 gramme of gold and is represented by 99.5 per cent pure physical gold bars.
What are gold ETFs?
Some of the advantages of investing in gold ETFs can be that there are no storage hassles, and there is also no doubt about the purity of gold. There is no premium or making charges as the ETF is in electronic form.
What are gold ETFs?
Also, when you buy an old gold item, the jeweller can cut making charges, and the holder bears losses. Gold ETFs can be sold any time during market hours, and the holder will get the latest price.
What are large cap mutual funds?
Large cap mutual funds need to have at least 80 per cent of their investments in large cap stocks, as per Securities Exchange Board of India's classification of mutual funds. This makes them more stable than any other equity mutual fund category.
What are large cap mutual funds?
Large cap firms are fundamentally strong; their market capitalisation is higher than that of mid- and small-cap firms; their market is vast, so they can face market fluctuations better than mid- and small-cap companies.
Who can invest in large cap mutual funds
Investors with a long-term investment horizon can invest in large cap mutual funds.
Top Gold ETF in 5 years
The best gold ETF in terms of highest SIP returns (XIRR) in 5 years is Invesco India Gold ETF FoF Direct-Growth.
The ETF has given 14.24 per cent annualised SIP returns in the 5-year time frame.
It has assets under management (AUM) of Rs 84 crore, while its net asset value (NAV) as of October 14, 2024, is Rs 22.79.
Top Gold ETF in 5 years
Benchmarked against the price of physical gold, the ETF has given 6.81 per cent annualised SIP returns since its inception in January 2013.
At an expense ratio of 0.1 per cent, the ETF has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment.
Top large cap mutual fund in 5 years
The best large cap mutual fund in terms of highest SIP returns is Nippon India Large Cap Fund Direct-Growth.
The fund has an asset base of Rs 34,432 crore, while its NAV price is Rs 99.68.
Top large cap mutual fund in 5 years
Benchmarked against BSE 100 TRI, the fund has given 17.63 per cent annualised return since its inception in January 2013.
At an expense ratio of 0.67 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment.
Current value of Rs 15,000 monthly SIP investment in best gold ETF
A Rs 15,000 monthly SIP in Invesco India Gold ETF FoF Direct-Growth in 5 years, or a total investment of Rs 9 lakh, has grown to Rs 12.86 lakh.
Current value of Rs 15,000 monthly SIP investment in best large cap mutual fund
A Rs 15,000 monthly SIP in Nippon India Large Cap Fund Direct-Growth has grown to Rs 17.95 lakh in the 5-year time frame.