Top Gold ETF vs Top Silver ETF 1-year Return Calculator: Which has given higher return on Rs 10 lakh investment; see calculations to know that
Top gold ETF vs Top silver ETF 1-year Return Calculator: Gold and silver exchange traded funds (ETFs) are electronic forms of the precious metals. Both track the prices of the physical metal of very high purity. Both are considered good investments for the long term, but which of them has provided higher return?
Top Gold ETF vs Top Silver ETF 1-year Return Calculator: The charm of physical gold and silver in India is limited not just for aesthetic purposes but also as an investment tool. People use them in the form of jewellery, coins, bars, etc. The possession of both metals is considered a mark of prestige in society. But in modern times, their utility is limited not only to their physical form but also to their electronic form. People who see gold and silver just as investments and want to avoid having them in their physical form can invest in their electronic form. Gold and silver exchange traded funds (ETFs) are popular investment options among investors who want to diversify their portfolio by adding commodities to their portfolio. In this write-up, know the difference between gold and silver ETFs, which has been the best gold ETF and silver ETF with the highest annualised return (CAGR) in 1 year, and which of them has given a higher return on a Rs 10 lakh investment in the same time frame.
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What are ETFs?
ETFs are a form of mutual fund that trade in a share market like any other stock. The price of their net asset value (NAV) fluctuates throughout the trading session, is fixed at the end of the session, and remains so till the beginning of the next session. This is also the only mutual fund category where investors need a demat account to trade in. Since ETFs follow an index or the price of a commodity, these are considered passive funds and have a low expense ratio.
What are gold ETFs?
Gold ETFs follow the domestic price of physical gold of 99.5 per cent purity. One Gold ETF unit is equal to 1 gramme of gold. When investors redeem their gold ETF investment, they don’t get physical gold but receive the cash equivalent. This makes gold ETFs unique as investors who don't want to purchase gold in its physical form but want to take advantage of its price appreciation can invest in them.
What are gold ETFs?
The other benefit is that the price of a gold ETF unit remains the same everywhere, unlike the price of physical gold, which may vary from city to city. Earnings from gold ETFs are considered capital gains and, hence, are subject to short and long term capital gains tax. There is no wealth tax, security transaction tax, VAT, or sales tax on buying or selling gold ETFs.
What are silver ETFs?
Silver ETFs invest in 99.99 per cent pure silver. Securities Exchange Board of India (Sebi) directs silver ETFs to have 95 per cent of their investments in silver or related securities.
What are silver ETFs?
Like gold ETFs, they have no storage cost, provide a hedge against inflation, and have liquidity compared to their physical form. Investors get the benefit of silver price appreciation without directly investing in it.
Gold ETF with highest annualised returns in 1 year
Edelweiss Gold and Silver ETF FoF - Direct Plan is the top gold ETF in terms of annualised returns in 1 year.
It has provided 28.56 per cent annualised return in the 1-year period.
The ETF's net asset value (NAV) is Rs 15.7720, while its assets under management (AUM) is Rs 136 crore.
Gold ETF with highest annualised returns in 1 year
Benchmarked against the domestic gold and silver prices, the ETF has given 23.70 per cent annualised returns since its debut in September 2022.
At an expense ratio of 0.30 per cent, the minimum SIP and lump sum investment in the gold ETF is Rs 100 each.
Silver ETF with highest annualised returns in 1 year
UTI Silver ETF is the top silver ETF in the 1-year time frame with 32.90 per cent annualised return.
It has an NAV of Rs 94.2187, while its AUM is Rs 120 crore.
Silver ETF with highest annualised returns in 1 year
Benchmarked against the domestic silver price, the ETF has given 16.15 per cent annualised return since its debut in April 2023.
At an expense ratio of 0.52 per cent, the minimum lump sum investment in the silver ETF is Rs 5,000.
Return on Rs 10 lakh investment in UTI Silver ETF in 1 year
The estimated return on a Rs 10 lakh investment in UTI Silver ETF is Rs 3.29 lakh.
Return on Rs 10 lakh investment in Edelweiss Gold and Silver ETF FoF - Direct Plan in 1 year
The estimated return on a Rs 10 lakh investment in Edelweiss Gold and Silver ETF FoF - Direct Plan is Rs 2.86 lakh.