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New Indian Express
2 days ago
- Business
- New Indian Express
Best ways to invest in gold that hit record highs in H1
Gold, which has never ceased to be the safe-haven asset so far, has gained 26% in the first half of 2025 becoming one of the top-performing major asset classes. The precious metal has scaled 26 new all-time highs during this period in global markets—including once crossing the sensitive Rs 1 lakh/10 grams mark in the domestic markets when the metal crossed $3,500/ounce-mark in the third week of April. This 26 new life-time highs came in after breaking through a 40-new-record streaks in 2024 when it had rallied 24% over a 22% rally in the previous year. What makes the metal so alluring to investors? There are many a reason, with the shining allure it has for women as a jewellery (our households are sitting over close to 26,000 tonnes of gold in jewellery alone) and its ready fungibility/encashability when in need of ready cash being the top reasons for its allurement. Let's look at some of the best ways to invest in this metal, even though investment experts recommend allocating only a small portion (5–10%) of your portfolio to precious metals. According to the World Gold Council, a combination of a weaker US dollar, range-bound interest rates and a highly uncertain geo-economic environment has resulted in strong investment demand for gold. Another equally important driver is the continuing central bank demands led by the Reserve Bank and the central bank of China among others. The council sees at least 5% more spike in prices during the course of the year and 10-15% more if current volatile economic conditions deteriorate further exacerbating stagflationary pressures—that's the metal reaching $3,840/ounce by end December and translating into an annual return of 40%. But many Wall Street watchers have predicted the metal hitting the $4,000/ounce mark by December. Experts recommend allocating only a small portion, say 5–10% of your investment portfolio to precious metals, including silver and the following are the best ways to take exposure to this metal. The easiest way is investing in sovereign gold bonds (SGBs) launched in 2015, but since last year the SGBs have been discontinued. Starting 2015, the RBI had launched 67 SGB tranches-- each being an eight-year instrument with a five-year lock-in--issuing 14.7 crore units. They were listed and traded in the cash segment of the BSE and the NSE and investors could buy and sell them through demat accounts. Gold Exchange Traded Funds (ETFs) Given that no new SGBs are being issued, the best option available to own non-physical gold is to go in for gold ETFs which track the domestic physical prices of the metal. Each gold ETF unit represents the physical gold and is based on gold prices and invest in physical bullion. One gold ETF unit equals 1 gram of gold, backed by high-purity physical metal. Why ETFs? Because they are safe and have higher liquidity as they are listed and are traded every day. Though, there are brokerage charges they are way less than the making charges on physical jewellery. The expense ratio in gold ETFs is also lower than that of gold MFs. On the negative side, since ETFs track the price of gold, they are subject to volatility. To invest in an ETF, one needs to have a demat account. There are entry and exit loads and the investor has to pay brokerage every time. Gold Mutual Funds Gold mutual funds are open-ended funds that invest in the units of a gold ETF with the ultimate goal of creating wealth using the potential of gold as a commodity. Gold MF units are priced differently-- in the form of net asset value disclosed at the end of the trading session—as opposed to gold ETFs which are linked to physical prices. Since gold MFs are actively managed, they have the potential to outperform the metal price over time. They also offer the convenience of investing through a fund house. On the negatives, gold MFs take a higher expense ratio than ETFs, typically around 1-2% apart from the risk of underperformance-- the return can be lower than gold price over time. In comparison to gold ETFs, gold MFs have low minimum investment requirements, making them more accessible for retail investors. Also, you don't need a demat account to invest in this form of gold.
Time of India
10-07-2025
- Business
- Time of India
Gold demand: Gold ETF inflows hit 5-month high at Rs 2,081 crore in June; investor rush lifts AUM close to Rs 65,000 crore
Investor appetite for gold-backed mutual funds surged in June, with Gold Exchange Traded Funds (ETFs) attracting net inflows of Rs 2,081 crore, the highest in five months, amid resilient gold prices , market volatility, and geopolitical tensions. According to data from the Association of Mutual Funds in India (Amfi), the June inflows mark a sharp jump from Rs 292 crore in May and reverse the outflow trend seen in March and April. Overall, the category has clocked over Rs 8,000 crore in net inflows in the first half of 2025, PTI reported. The strong inflows pushed the segment's assets under management (AUM) up by nearly 4% to Rs 64,777 crore in June from Rs 62,453 crore in May. '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. Investor interest also reflected in rising folio counts, which rose by 2.85 lakh to 76.54 lakh in June from 73.69 lakh in May, indicating growing retail participation in the gold ETF space. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3BHK Transformation Possible for ₹4.5 Lakh? HomeLane Get Quote Undo Two new gold ETF schemes were launched during the month, collectively mobilising Rs 41 crore. While modest in value, Meshram said the new launches 'add to the broader recovery in flows and reflect steady investor interest in the asset class.' Gold ETFs are passive investment vehicles that track domestic physical gold prices and are backed by physical gold of high purity. Each unit typically represents 1 gram of gold, offering a hybrid of gold investment safety and stock-like liquidity. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Recorder
09-07-2025
- Business
- Business Recorder
India mutual fund investors chase equities, gold and silver in quest for returns
Mutual fund allocations bounced back in India last month, driven by strong retail participation, with investors also seeking out gold and silver funds in the hunt for stronger returns. Indian equity mutual fund inflows rose 24% to 235.87 billion rupees($2.75 billion), snapping a five-month decline, as investors poured money across segments and turned to gold and silver ETFs in search of returns amid rising global trade uncertainty. India's mutual fund industry hit a new record in June, with net assets under management (AUM) climbing to 74.41 trillion rupees. The inflows supported the benchmark Nifty 50, which gained 3% for the month, while the small-caps and mid-caps jumped 6.7% and 4%, respectively. Gold Exchange Traded Funds saw inflows surge ten-fold month-on-month to 20.81 billion rupees in June, hitting a five-month high, data from the Association of Mutual Funds in India showed on Wednesday. 'Rising inflows into Gold ETFs suggest investor interest to seek both diversification and gain from the performance of the precious metal,' said Anand Vardarajan, chief business officer at Tata Asset Management. RBI action in focus as Indian bonds stay put before US data Silver ETFs attracted inflows of 20.04 billion rupees, up from 8.53 billion rupees in May. Large-cap equity mutual funds recorded a 36% monthly jump to 16.94 billion rupees, while small-cap and mid-cap funds posted a 25% and 34% rise in inflows. Contributions via systematic investment plans (SIPs) – a popular periodic investment route for mutual fund investors - rose to a record 272.69 billion rupees in June. The number of contributing SIP accounts also climbed to 86.4 million from 85.6 million in May. 'Strong inflows and record SIPs reflect improved sentiment, better valuations post-correction, and the enduring structural confidence in Indian equities,' said Himanshu Srivastava, associate director, manager research at Morningstar India. If June-quarter earnings hold up and macro stability continues, strong domestic inflows could cushion markets from foreign outflows and trade jitters, two analysts said.
Time of India
15-05-2025
- Business
- Time of India
Gold ETFs down up to 14% from peak. Is the best of yellow metal bull run over?
After a strong rally that saw gold prices hitting record highs earlier this year, Gold Exchange Traded Funds ( ETFs ) have corrected up to 14% from their recent peaks, prompting investors to question whether the bull run in the yellow metal is over or not. An analysis of data showed that SBI Gold ETF corrected the most by around 14% from its 52-week high level, followed by 360 One Gold ETF and Tata Gold ETF, which are down by around 12% each from their 52-week high level. Also Read | MF Tracker: Can this smallcap mutual fund add value to your portfolio? Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. 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View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Around seven gold-based ETFs were down by 7% from their peak which includes LIC MF Gold ETF, Groww Gold ETF, Mirae Asset Gold ETF, HDFC Gold ETF , and Edelweiss Gold ETF. Kotak Gold ETF and DSP Gold ETF were down by 6% each from their peak, and lastly, Zerodha Gold ETF dropped by 5% from its peak. Live Events An expert believes that during uncertain periods, gold performs well as investors consider it a safe haven, and the past five years have seen a lot of volatility, starting with the pandemic and then, the geopolitical tensions concerning Russia-Ukraine, Israel-Hamas, and now India and Pakistan across the border have firmly pushed prices upward. 'They would usually be normalised upon the diffusion of those fears and the stabilisation of global sentiment. Prices are now dipping simply owing to this releasing-off effect after a strong rally, which for some time had even outshined long-term equity returns.' commented Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. According to a report by ET, on Wednesday, gold and silver settled on a weak note in the domestic and international markets. Gold and silver prices were unable to hold their previous sessions gain and plunged again amid easing safe-haven demand due to US-China trade negotiations and major risk aversion in the global financial markets. The U.S. and China trade negotiations changed bullion markets sentiments and traders and investors are unwinding their long positions and booking profits, the report further added. In the last nine months, gold ETFs have offered upto 32.37% return with UTI Gold ETF being the topper, followed by Invesco India Gold ETF which has offered 31.68% return. Nippon India ETF Gold BeES, the largest gold ETF, offered 31.24% return. Edelweiss Gold ETF gave the lowest return of around 31.08% return. Also Read | Mutual funds use inflows to stuff another Rs 17,300 crore in their cash bag These ETFs gave upto 28.69% return in the last one year with UTI Gold ETF being the topper. LIC MF Gold ETF gave the lowest return of around 27.94% in the last one year. The expert firmly mentions that the recent dip doesn't mean the rally has necessarily completely ended-the gold remains topical as a long-term hedge and it is one investment that should be in a diversified portfolio rather than a core growth asset. 'One option is the ETFs, but investors can also take the flexible route like multi-asset funds-that adjust allocational emphasis based on market perception. Overall it can constitute about 8 to 10% of the total portfolio,' Minocha added. 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. 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
29-04-2025
- Business
- Economic Times
Gold's comeback: Why the world is turning to the yellow metal in 2025
Live Events 1) US-China tariff negotiations 2) Confidence in the US dollar 3) Fed autonomy & US interest rates What do North America, Europe, and Asia have in common right now? Well, apart from unnerving stock market volatility, it's their preference for gold. According to data from the World Gold Council, flows into Gold Exchange Traded Funds from these regions touched $21 billion in Q1 2025 — the largest quarterly inflow since the first quarter of the many economic and geopolitical differences between the regions, investors seem to agree on one thing — the relevance of gold in investment portfolios . And they have good reason recap, President Trump' s aggressive trade policies have stoked inflationary and recessionary fears in the United States, as well as world over, as disrupted supply chains and trade relations are expected to put upward pressure on commodity prices and hurt trade and commerce. Stock markets have sharply corrected in such equity market upheavals trigger a flow of investor money into the US dollar, US government bonds and gold which are considered relatively stable avenues to park funds. But this time, considering the policy uncertainty and grim economic outlook in the US, investors have been shunning US based assets and opting for gold and other leading international currencies and bonds. The result has been the remarkable ~25% rally in gold prices since the start of this calendar year - which has not only been rewarding from a returns perspective but has also cushioned multi-asset portfolios from sharp with Akshaya Tritiya 's gold-buying tradition around the corner, the question is what next for gold? Has gold run up too much and is a correction on the cards? Or is the outlook still promising? Well, three key global factors are set to impact international gold prices and in turn domestic gold prices in the near to medium term:With the two largest economies embroiled in a tit for tat trade war, a mutually beneficial trade deal will not be easy to arrive at. If unexpectedly productive negotiations ease tensions, gold prices may face pressure in the short run. But if there is a prolonged period of friction or if talks collapse and tensions escalate, risk sentiment will be hurt, stock markets may tumble and gold will continue to United States has been the leader of the liberal, globalized world. But that seems to be changing with the country, under Mr Trump's presidency, opting out of geopolitical partnerships, international cooperation agencies as well as free trade agreements. This has put a question mark on the US's and thus US dollar's decline in confidence has been underway since the Russia-Ukraine war broke out and led the US to freeze Russia's US-based assets. This made other countries nervous about holding reserves in the form of US assets and resulted in a strategic change to diversify reserves away from the US dollar and into central banks have bought over 1,000 tonnes of gold for three consecutive years since 2022, and the buying momentum is strong in 2025 too, creating a structural tailwind for gold prices. If policy making in the US continues to increase trust deficit, dollar assets held by foreigners may leave US shores where gold can be one of the US central bank - the Federal Reserve - which determines US interest rates is in a tricky spot. With higher tariffs on imported goods, inflation in the US is expected to go up. At the same time, expectation of higher prices is likely to slow down consumption of goods and services and the policy uncertainty is expected to weigh on business sentiment – both slowing down the the Fed were to cut interest rates now, inflation could get fired up on the back of lower borrowing costs. But lower borrowing costs are needed to support consumption and business investment and avoid a US recession. With President Trump pressuring the Fed to cut rates, Fed independence is in question, and lower US interest rates and thus potentially higher US inflation are on the horizon – both being bullish for non-yielding while gold has taken a breather for now, fundamentals are looking supportive of gold and investors would do well to buy the dip this Akshaya Tritiya. A 10-15% portfolio allocation to Gold Exchange Traded Funds or via the Gold Savings Fund is ideal to navigate this complex geopolitical and macroeconomic environment, marked with equity market volatility. Because as POTUS recently said, 'he who owns the gold makes the rules.'(Author of the article is Chirag Mehta , CIO at Quantum AMC): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
