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Economic Times
a day ago
- Business
- Economic Times
Gold ETF has beaten Nifty ETF 7 times in 10 years. How to invest now?
Synopsis Gold ETFs have mostly outperformed Nifty ETFs in the last decade. An ETMutualFunds analysis reveals gold ETFs beat Nifty ETFs seven out of ten times since 2016. Gold ETFs saw huge inflows in June, reaching Rupees 2,080 crore. Experts suggest watching Federal Reserve announcements and economic data. These factors could influence gold prices globally and on MCX. Gold commodity based ETFs have outperformed Nifty50 ETF around 70% of the times in the last 10 years, an analysis by ETMutualFunds showed. In other words, Since calendar year 2016 to 2025 so far, gold ETFs have outperformed Nifty50 based ETFs seven out of 10 times. ADVERTISEMENT For the analysis, we considered the average return of all Nifty50 based ETFs in the last 10 calendar years and gold based ETFs in the same period separately. A deep dive into the data showed that from 2016 to 2025 so far, gold ETFs have outperformed Nifty50 ETFs in 2016, 2018, 2019, 2020, 2022, 2024 and 2025 so far. In calendar year 2016 where Nifty50 ETFs gave an average return of 3.31%, Gold ETFs gave an average return of 10.47%. Also Read | Confused between gold and silver? Why not leave it for fund manager to decideSimilarly in 2018, 2019, and 2020 gold ETFs gave 7.02%, 22.94%, and 26.24% average returns respectively against an average return of 4.28%, 13.34%, and 15.73% in the same time period respectively. In 2022, gold ETFs gave 14.10% average return compared to an average return of 5.53% by Nifty50 ETFs. In 2024, gold based ETFs gave an average return of 18.49% against an average return of 9.98% by Nifty50 ETFs. ADVERTISEMENT On the contrary, in 2017, Nifty50 ETFs outshined by delivering an average return of 28.12% against an average return of 2.74% by gold ETFs. On one side where gold ETFs lost 4.48%, Nifty50 ETFs gave 23.72% average return. With gold ETFs outperforming Nifty50 ETFs in the current calendar year so far, Riya Singh, Research Analyst, Commodities and Currency at Emkay Global Financial Services said that Gold prices remained firm above $3,350/oz last week, reflecting a cautious yet supportive macro backdrop shaped by dovish commentary from key Federal Reserve officials, heightened geopolitical uncertainty, and tariff-driven inflation concerns. ADVERTISEMENT Fed Governor Christopher Waller reiterated his preference for a July rate cut to cushion economic risks, reinforcing expectations of 45 basis points of easing by year-end, even though the upcoming July 30 FOMC meeting is largely expected to result in a hold and his comments drove US Treasury yields and the dollar index lower, supporting gold, which benefits in a lower rate environment, Singh other factors have kept safe-haven flows resilient, with the World Gold Council reporting a 26% YTD rally and projecting a further 0–5% upside under base case scenarios, or 10–15% if stagflationary or recessionary conditions materialize, the analyst mentioned. ADVERTISEMENT Also Read | 14 equity MFs lost over 5% in 9 months. Have you parked your savings in any of them?Gold ETFs witnessed 600% surge in monthly inflows to Rs 2,080 crore in June. In May, gold ETFs received an inflow of Rs 291.91 crore after witnessing outflows for two consecutive months. In March and April, gold ETFs witnessed an outflow of Rs 77.21 crore and Rs 5.82 crore respectively. ADVERTISEMENT The total assets under management of gold ETFs was recorded at Rs 64,777 crore as on June 30, 2025 witnessing a surge of 4% from AUM of Rs 62,452 crore in May. On a yearly basis, the AUM has grown by 89% from an AUM of Rs 34,355 crore as on June 30, 2024.'ETF inflows and steady central bank buying continue to underpin the broader bullish narrative, while the US dollar's worst start to a year since 1973 remains a tailwind. On the domestic front, MCX gold futures hovered around Rs 97,400 per 10 grams, with strong support at Rs 96,500 – 95,900 and resistance near Rs 99,800. In the week ahead, traders will closely monitor Fed Chair Powell's speech, China's loan prime rate decision, and key US macro releases including PMI and durable goods orders, which could shift interest rate expectations and determine the next directional impulse for gold globally and on MCX,' Jain said.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle. (Catch all the Mutual Fund News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY
Time of India
a day ago
- Business
- Time of India
Gold ETF has beaten Nifty ETF 7 times in 10 years. How to invest now?
Gold commodity based ETFs have outperformed Nifty50 ETF around 70% of the times in the last 10 years, an analysis by ETMutualFunds showed. In other words, Since calendar year 2016 to 2025 so far, gold ETFs have outperformed Nifty50 based ETFs seven out of 10 times. For the analysis, we considered the average return of all Nifty50 based ETFs in the last 10 calendar years and gold based ETFs in the same period separately. Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Data Science Data Analytics others Others Artificial Intelligence Degree Management CXO PGDM Public Policy Cybersecurity healthcare Design Thinking Operations Management Product Management Finance Technology Healthcare Digital Marketing MBA MCA Data Science Leadership Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details A deep dive into the data showed that from 2016 to 2025 so far, gold ETFs have outperformed Nifty50 ETFs in 2016, 2018, 2019, 2020, 2022, 2024 and 2025 so far. In calendar year 2016 where Nifty50 ETFs gave an average return of 3.31%, Gold ETFs gave an average return of 10.47%. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Also Read | Confused between gold and silver? Why not leave it for fund manager to decide Similarly in 2018, 2019, and 2020 gold ETFs gave 7.02%, 22.94%, and 26.24% average returns respectively against an average return of 4.28%, 13.34%, and 15.73% in the same time period respectively. Live Events In 2022, gold ETFs gave 14.10% average return compared to an average return of 5.53% by Nifty50 ETFs. In 2024, gold based ETFs gave an average return of 18.49% against an average return of 9.98% by Nifty50 ETFs. On the contrary, in 2017, Nifty50 ETFs outshined by delivering an average return of 28.12% against an average return of 2.74% by gold ETFs. On one side where gold ETFs lost 4.48%, Nifty50 ETFs gave 23.72% average return. With gold ETFs outperforming Nifty50 ETFs in the current calendar year so far, Riya Singh, Research Analyst, Commodities and Currency at Emkay Global Financial Services said that Gold prices remained firm above $3,350/oz last week, reflecting a cautious yet supportive macro backdrop shaped by dovish commentary from key Federal Reserve officials, heightened geopolitical uncertainty, and tariff-driven inflation concerns. Fed Governor Christopher Waller reiterated his preference for a July rate cut to cushion economic risks, reinforcing expectations of 45 basis points of easing by year-end, even though the upcoming July 30 FOMC meeting is largely expected to result in a hold and his comments drove US Treasury yields and the dollar index lower, supporting gold, which benefits in a lower rate environment, Singh added. Simultaneously, other factors have kept safe-haven flows resilient, with the World Gold Council reporting a 26% YTD rally and projecting a further 0–5% upside under base case scenarios, or 10–15% if stagflationary or recessionary conditions materialize, the analyst mentioned. Also Read | 14 equity MFs lost over 5% in 9 months. Have you parked your savings in any of them? Gold ETFs witnessed 600% surge in monthly inflows to Rs 2,080 crore in June. In May, gold ETFs received an inflow of Rs 291.91 crore after witnessing outflows for two consecutive months. In March and April, gold ETFs witnessed an outflow of Rs 77.21 crore and Rs 5.82 crore respectively. The total assets under management of gold ETFs was recorded at Rs 64,777 crore as on June 30, 2025 witnessing a surge of 4% from AUM of Rs 62,452 crore in May. On a yearly basis, the AUM has grown by 89% from an AUM of Rs 34,355 crore as on June 30, 2024. 'ETF inflows and steady central bank buying continue to underpin the broader bullish narrative, while the US dollar's worst start to a year since 1973 remains a tailwind. On the domestic front, MCX gold futures hovered around Rs 97,400 per 10 grams, with strong support at Rs 96,500 – 95,900 and resistance near Rs 99,800. In the week ahead, traders will closely monitor Fed Chair Powell's speech, China's loan prime rate decision, and key US macro releases including PMI and durable goods orders, which could shift interest rate expectations and determine the next directional impulse for gold globally and on MCX,' Jain said. If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
3 days ago
- Business
- Time of India
SBI FDs offer up to 6% returns in short term. Should investors explore debt mutual funds instead?
With SBI, the largest public sector lender, reducing interest rate on certain short-term tenure fixed deposits by 15 basis points for three tenures, mutual fund experts mentions that followed by the recent repo rate cut by the central bank, many banks are cutting their FD interest rates, making traditional FDs less attractive and short term debt mutual funds such as liquid funds and overnight funds may give better post-tax returns. 'Liquid funds and overnight funds may well give better post-tax returns to especially those at higher tax brackets while offering similar liquidity. Those in the 20%+ tax bracket could opt for hybrid Arbitrage funds for better taxation. Please also note that interest on FDs is taxable even on an accrual basis, whereas in case of mutual funds it is only when redeemed,' Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance shared with ETMutualFunds. Also Read | Explained: What is loan against mutual funds, and how do they work? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Another expert recommends best suited funds for investors with an investment horizon of up to six months and for the ones with an investment horizon of more than six months. 'Investors looking for short-term parking options may consider alternatives like ultra-short duration funds for periods up to 6 months, as they offer potentially better post-tax returns. For investment horizons above 6 months, arbitrage funds can be a more efficient option. They carry similar risk profiles to debt funds but may deliver slightly better returns,' Hrishikesh Palve, Director at Anand Rathi Wealth Limited told ETMutualFunds. Live Events SBI has reduced the FD rates by 15 basis points for three short-term tenures. The bank has reduced the interest rate for the tenure of 46 days to 179 days from 5.05% to 4.90% for general citizens. The FD interest rate for tenure between 180 days and 210 days has been reduced from 5.80% to 5.65%. For the tenure of 211 days to less than 1 year, the bank has lowered the rate from 6.05% to 5.90% for general citizens. These new interest rates are effective from July 15. In case of senior citizens, the FD rates have been reduced by 15 bps as well for the same tenures. According to a report by ETWealth, After revision, the bank is offering FD interest rate between 3.05% and 6.45% (excluding Amrit Vrishti rates) for general citizens. The interest rate is applicable FD tenure ranging between 7 days and 10 years. For senior citizens, the bank offers FD interest rate between 3.55% and 7.05% (including SBI WeCare) for the same tenure. FD vs debt funds Coming to the comparison between fixed deposits and debt mutual funds, fixed deposits are considered low risk investments as they offer a guaranteed return for the predetermined period whereas debt mutual funds have a slightly higher risk associated with them because of the interest rate movement. The second point of difference comes on the taxation part. The investment in tax-saving fixed deposits is exempted under Section 80 C of the Income Tax Act whereas for the debt mutual funds there is no such exemption. But both fixed deposits and debt mutual funds are classified under the same asset class. As SBI slashed rates and experts recommended debt mutual funds as an option for short-term goals, investors are wondering that how does the tax efficiency of short-term debt funds compare to these FDs for someone in the higher tax bracket, to which Minocha replies that though the indexation benefit is removed from the debt funds, their taxation will still be better as they are taxed only when redeemed. However, Palve is of the view that for someone in a higher tax bracket, investing in debt funds or FDs doesn't offer much difference in terms of tax efficiency, since gains from both are now taxed as per the individual's income tax slab. However, investors in this category can consider alternatives like arbitrage funds, as these funds carry a similar level of risk to debt funds but have the potential to offer better post-tax returns due to favorable taxation, making them more tax-efficient options for short-term investments, he added. Also Read | Sebi proposes changes in categorization and rationalization of mutual fund schemes FD-beating debt mutual funds ETMutualFunds considered the performance of debt mutual funds in the last one year and found that around 312 debt mutual funds have marked their presence in the market for around one year. Out of these 312 funds, 310 gave over 5.9% return. Around 17 funds gave double-digit returns in the last one year. DSP Credit Risk Fund offered the highest return of around 22.9% in the last one year, followed by HSBC Credit Risk Fund which gave 21.4% return in the same period. Aditya Birla SL Credit Risk Fund and Aditya Birla SL Medium Term Plan gave 16.9% and 13.9% returns respectively in the same period. Three funds - DSP 10Y G-Sec Fund, Baroda BNP Paribas Corp Bond Fund, and Nippon India Dynamic Bond Fund - gave 10% each and were the last ones to offer double-digit returns. ITI Overnight Fund gave a return of 6% in the last one year. Outliners Samco Overnight Fund and Motilal Oswal Ultra Short Term Fund offered equivalent returns to the FD interest rate in the last one year. The schemes gave 5.9% each in the said time period. Investors generally consider overnight and liquid funds as an option for parking idle savings outside the world of banking. For a savings account alternative, safety and liquidity must take priority over anything else and liquid funds and overnight funds come closest to satisfying these conditions. While discussing mutual fund categories that can now be considered a superior alternative to short-term FDs, especially for emergency funds, both the experts recommend liquid funds and ultra short duration funds. Liquid funds and ultra-short duration funds could indeed confer superior tax efficiencies, daily liquidity and no penalty if redeemed earlier, and marginally better returns than short-term fixed deposits and for those above 20% tax bracket could consider arbitrage funds, is what Minocha recommended. Echoing similar opinion, Palve said for short-term goals and emergency funds, liquid funds & ultra-short duration funds can be a strong alternative to fixed deposits as they typically invest in debt and money market instruments with a duration of 3 to 6 months, offering better post-tax returns and higher liquidity and are especially suitable for investors in higher tax brackets, as they can deliver slightly better returns than FDs while maintaining a low-risk profile. Latest data from Association of Mutual Funds in India (AMFI) shows that mutual fund investors have realigned their short-term investments, pulling money out of liquid and overnight funds amid changing preferences as these categories together have witnessed an outflow of more than Rs 81,000 crore in the last two months - May and June. In the last two months, liquid funds have seen an outflow of Rs 16,274 crore and overnight funds saw an outflow of Rs 65,401 the contrary, money market funds have been receiving huge inflows. Based on the data, money market funds have received the second highest inflows in the last three months - April, May and June within 16-sub categories in debt mutual funds. In May, corporate bond funds received the highest inflow of Rs 11,983 crore among 16-sub categories whereas in June, short duration funds received the highest inflow of Rs 10,276 crore. Also Read | NFO Insight: Capitalmind Mutual Fund's flexi cap fund opens for subscription. Will it help to manage current market volatility? As corporate bond funds and short duration funds are also gaining investors' interest, can these be considered to park idle cash with liquidity and slightly better returns to which Minocha recommends that liquid funds, ultra-short funds, short-duration and arbitrage funds will give better post-tax returns with a reasonable degree of liquidity and fair safety, ideal for parking idle funds. Whereas Palve says that with falling FD rates, investors can consider mutual funds as a better alternative to park idle cash but being selective is important. 'For an investment horizon of up to 1–6 months, ultra-short duration funds are suitable as they offer good liquidity and stable returns. For horizons above 6 months, arbitrage funds work well since they provide slightly better return potential than traditional debt funds, with comparable risk and better tax efficiency,' Palve said. We considered all debt categories such as gilt fund, long duration, medium to long duration, gilt fund - constant maturity 10 year, credit risk funds, liquid funds, money market funds, overnight funds, corporate bond fund, dynamic bond fund, floating rate bond, banking and PSU funds, medium duration, low duration, short duration funds. We excluded debt based target maturity funds. We considered regular and growth options. We calculated returns for one year. We calculated simple annualised returns as in debt mutual funds, returns up to one year are annualised and above one year are CAGR. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
11-07-2025
- Business
- Economic Times
Investors' pour Rs 47,000 crore in midcap & smallcap mutual funds in H1 CY25. What are they really chasing?
Midcap and smallcap funds have seen significant inflows, fueled by past returns and FOMO, raising concerns about high valuations and potential earnings disappointments. With investors' showing clear preference for midcap and smallcap mutual funds by pouring Rs 47,000 crore in the first half of the current calendar year and the categories offering good returns, market experts are of the view that these inflows have been driven by higher trailing returns in recent years, and the fear of missing out (FOMO) may also be pushing investors to chase past performance.'These returns may not always be backed by sustainable earnings growth and other fundamentals of the underlying companies and thus investors may need to be cautious. Also, past returns can result in mis-selling and pushing such funds easily to retail investors,' Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai told ETMutualFunds. Also Read | Midcap and smallcap mutual funds witness surge in inflows. Is investor confidence back? Considering this as a concern, Dhawan mentioned that the current valuations in mid and small caps are well above historical averages, leaving little margin for error if earnings disappoint and also, based on trailing returns investors may enter with high return expectations, only to be disappointed if the segment underperforms or corrects. In the first half of the current calendar year, mid cap funds received a total inflow of Rs 21,870 crore whereas small cap funds received an inflow of Rs 24,774 crore in the same period. Another expert cautions investors that they should invest in mid and small caps only with a slightly longer-term horizon compared to largecaps and also be ready with slightly higher volatility given that these segments are trading at a higher valuation. 'We are not negative on mid and smallcaps. So, we are just saying that if you are coming into mid and smallcap strategies, please do come with a slightly longer-term horizon compared to largecaps and also be ready with slightly higher volatility given that they are trading at a higher valuation and that is what our view has been,' Harsha Upadhyaya, CIO-Equity, Kotak AMC told the categories are currently trading at a higher valuation and are receiving heavy inflows, Dhawan mentioned that investors often fall prey to herd mentality, chasing recent winners like small and mid-cap funds assuming past returns will be replicated in the future, the current forward valuations in the small and mid-cap space are still significantly above their long-term averages, therefore this space lacks valuation comfort, and these segments are more volatile and sensitive to earnings disappointments or any weak on one's risk appetite and investment horizon, allocation to small and mid-cap funds can range between 10% to 30% of the portfolio and the large-cap segment offers more reasonable valuations currently and can be a major part of the portfolio providing stability and downside protection, is what Dhawan advised. Also Read | Gold ETFs: 600% surge in monthly inflows to Rs 2,080 crore. Are you late to the party? Though midcap and smallcap funds have been on the lower side of the return chart in the current calendar year so far (till June 30) but since April's low, mid cap funds have gained 20% and small caps have gained nearly 21%.On April 7 the benchmark index was at the level of 73,137, the lowest in the current financial year so far. After looking at the recent inflow trend, returns offered, and recent valuations in the mid cap and small cap categories, Dhawan recommends investors that a staggered investment approach through SIP or STP is wiser than a selective exposure to mid and smallcap funds can still be beneficial for long-term goals, it's crucial to limit allocation based on risk profile and focus on consistent, disciplined investing rather than timing the market and selective allocation, backed by earnings visibility and reasonable valuations, may be key to navigating this space wisely, Dhawan investors tend to follow the inflow trend and invest where others are investing and putting their money and the categories which are delivering high returns, which deviates them from their asset allocation and risk profile. Many experts always advise choosing a fund based on their risk appetite, investment horizon and goals and follow the addition to this, Dhawan recommends that chasing inflow trends is never a wise strategy, such moves are often driven by FOMO, leading investors to enter at peak valuations and see downsides during corrections and inflows are not a reliable indicator for making investment adds that focusing on the long-term asset allocation and risk profile ensures that the portfolio is aligned with the goals and capacity to handle volatility. 'Staying disciplined avoids emotional, peer driven decisions and encourages better rebalancing and long-term wealth creation. A diversified approach offers far more stability than trend-chasing, especially in uncertain market phases,' Dhawan shared. Also Read | Parag Parikh Flexi Cap Fund increases stake in ITC, Coal India, and 10 other stocks in June Post analysing the recent flow of returns and categories receiving inflows, Dhawan is of the opinion that the outlook for mid and small-cap funds remains cautious and the future performance will be driven by earnings growth of the underlying businesses, which will indicate whether the current high valuations are justified by actual earnings and business growth.'While long-term structural tailwinds remain fine, near-term corrections cannot be ruled out due to elevated valuations and recent developments such as geopolitical tensions, trade tariffs, and Wars,' he adds. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
10-07-2025
- Business
- Time of India
Gold ETFs: 600% surge in monthly inflows to Rs 2,080 crore. Are you late to the party?
As Gold ETFs witnessed a surge of over 613% in monthly inflows to Rs 2,080 crore in June, market experts are of the opinion that gold prices have rallied in recent times due to a combination of global economic and geopolitical factors such as geopolitical uncertainty, central bank buying, inflation concern, and falling interest rates. 'Rising tensions globally, such as the India-US Trade Deal, conflicts in the Middle East, and Trump tariffs, have increased demand for gold as a safe-haven asset. Several countries have been aggressively adding gold to their reserves to diversify away from the US dollar and enhance financial security. India saw a huge jump to 72.6 tonnes of gold in 2024, the highest annual purchase in this three-year period,' Chethan Shenoy, Director & Head - Product & Research, Anand Rathi Wealth Limited shared with ETMutualFunds. Shenoy further adds that the fear of inflation keeps gold appealing as a hedge and with inflation stabilizing, central banks (especially the US Fed) are expected to cut rates in 2025 as lower interest rates makes gold more attractive. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Physical Gold vs Digital Gold: Which One Should You Invest In? Liseer Undo Also Read | Midcap and smallcap mutual funds witness surge in inflows. Is investor confidence back? Another expert believes that this surge is a shift in sentiment supported by resilient gold prices, geopolitical uncertainties and volatility in equity and fixed income markets. Live Events 'The robust inflows in June indicate a decisive shift in sentiment, likely supported by resilient gold prices, geopolitical uncertainties, and volatility in equity and fixed income markets, which have revived gold's appeal as a safe-haven asset,' said Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India. In May, gold ETFs received an inflow of Rs 291.91 crore after witnessing outflows for two consecutive months. In March and April, gold ETFs witnessed an outflow of Rs 77.21 crore and Rs 5.82 crore respectively. With gold ETFs gaining investors' interest, Shenoy mentions that when considering SIPs, investing in Gold through SIP is not the best option for investors as they would generate a better return investing in equity mutual funds . 'We suggest investors to maintain a balanced portfolio, with an asset allocation of 80:20 in equity to debt. But if one wants exposure to gold, it should not exceed 5-10% of their portfolio,' he adds. There are two other mutual fund categories - dynamic asset allocation and multi asset funds. Dynamic asset allocation funds make investment in equity or debt that is managed dynamically and multi asset funds invest in at least three asset classes with a minimum allocation of at least 10% each in all three asset classes. Also Read | Investing in JioBlackRock Liquid Fund? Find out 1-month to 1-year return of other liquid funds Considering the investment universe of these two categories as well, one thing that all want to know is how do gold ETFs compare with other hedging options like multi asset funds or dynamic asset allocation funds? Multi-asset and dynamic asset allocation funds are types of hybrid funds and cannot be directly compared with Gold ETFs as gold ETFs provide pure, single-asset exposure to gold and are typically used for hedging whereas hybrid funds invest across 2 or more categories, such as equity, debt, and commodities, the expert mentions. 'However, they often lack transparency, and investors have limited visibility or control over the actual allocation. It would be more beneficial for an investor to invest in pure-play equity and debt funds, with an allocation of 80:20 to ensure long-term stability and consistent wealth creation,' Shenoy advices. The total assets under management of gold ETFs was recorded at Rs 64,777 crore as on June 30, 2025 witnessing a surge of 4% from AUM of Rs 62,452 crore in May. On a yearly basis, the AUM has grown by 89% from an AUM of Rs 34,355 crore as on June 30, 2024. According to a report by ETMarkets, on Tuesday, gold and silver settled on a weaker note in the domestic and international markets. Gold and silver plunged in a highly volatile session due to long unwinding by traders ahead of the FOMC meeting minutes and Trump tariff fears. Traders booked profits in long positions ahead of the Fed's June meeting minutes. The U.S. President imposed a 25% trade tariff on Japan and South Korea and also sent letters to dozens of countries to impose trade tariffs if a trade deal is not executed. However, he extended the tariff deadline until 1st August to make a trade deal. Also Read | Quant Small Cap Fund adds Siemens Energy India, 5 others; exits ITC in June After analysing different probabilities of CAGR of Nifty vs Gold, the analysis shows gold has not been a consistent performer when compared to equity across different time frames as it's prices remain unpredictable which makes it a less dependable asset class for investment compared to Nifty, which has shown stable and consistent returns over the last 25 years. When considering long-term wealth creation, Nifty maintains a much stronger probability of beating inflation and compounding wealth versus Gold, which have a higher standard deviation and lower risk adjusted return potential, Shenoy mentions. 'Gold is a defence asset like debt. Hence, the total allocation to gold and debt in your portfolio should not exceed 20%,' he further recommends. Gold ETFs are exchange-traded funds that track the price of physical gold. Each unit of a Gold ETF is backed by a specific quantity of gold, usually equivalent to one gram. They are listed on stock exchanges, and you need a demat and trading account to buy and sell them. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
