Zerodha Gold ETF, launched by Zerodha Mutual Fund on February 16, 2024, is an open-ended scheme aiming to mimic the returns of domestic gold prices, minus associated fees and expenses. It primarily invests in physical gold, offering investors indirect exposure to the yellow metal without having to hold it physically. This new fund offering (NFO) is open for subscription until February 21, 2024, with a minimum investment requirement of Rs 500.
Essentially, by investing in this ETF, you’re tracking the performance of gold without dealing with the hassles of physical storage, insurance, and security. Remember, the returns will closely mirror the domestic gold price movement, except for minor tracking errors and fund management fees.
This NFO is suitable for investors who are seeking, long-term capital appreciation and investment in gold to generate returns similar to the performance of the gold, subject to tracking errors.
Risk-o-meter – Scheme: High Risk, Benchmark: High Risk
| Types of Instruments | Minimum Allocation | Maximum Allocation | Risk Profile |
| Physical Gold & Gold related instruments as may be specified by SEBI* | 95% | 100% | Moderate to High |
| Debt and Money Market Instruments, cash and cash equivalents. | 0% | 5% | Low to Moderate |
Benchmark
The Benchmark for the Scheme is Domestic Prices of Physical Gold.
Shyam Agarwal, Age: 23 Years, Educational Qualification: Bachelors of Commerce (B.com), Experience: 2+ years
| Particulars | HDFC Gold ETF Reg | Nippon India ETF Gold BeES | ICICI Pru Gold ETF Reg | SBI Gold ETF | Kotak Gold ETF |
| Net Asset (Rs Cr) | 4,080 | 8,711 | 4,845 | 3,635 | 3,249 |
| Return Since Launch (%) | 8.47 | 10.64 | 8.05 | 9.15 | 11.39 |
| Expense Ratio (%) | 0.59 | 0.79 | 0.5 | 0.65 | 0.55 |
| Fund Age | 13Y 6M | 16Y 11M | 13Y 5M | 14Y 9M | 16Y 6M |
| Portfolio Turnover (%) | — | 8 | — | 4 | 19.24 |
| Returns | HDFC Gold ETF Reg | Nippon India ETF Gold BeES | ICICI Pru Gold ETF Reg | SBI Gold ETF | Kotak Gold ETF |
| 1 Year | 10.47 | 9.48 | 8.63 | 9.45 | 8.88 |
| 2 Years | 10.04 | 9.94 | 10.6 | 9.93 | 10.57 |
| 3 Years | 9.49 | 9.33 | 8.48 | 9.45 | 8.45 |
| 5 Years | 11.99 | 11.94 | 12.15 | 12.11 | 12.26 |
| 7 Years | 10.1 | 9.92 | 9.85 | 9.99 | 10.04 |
| 10 Years | 6.81 | 6.75 | 6.71 | 6.8 | 6.81 |
All in Returns in %
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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