
Gold Exchange-Traded Funds (ETFs) have gained massive investor attention this year, especially recently due to their impressive performance during volatile markets and inflationary pressures. Gold ETFs enable investors to take exposure to gold without actually holding it, with the benefits of liquidity, transparency, and exchange-traded ease of trading. Let's analyse some top performing Gold ETFs this festive season for you to gift your spouse, specially now that marriage-dedicated festival of Karwa Chauth is a couple of days away.
Four Gold ETFs have been standout performers among Indian investors this year:
Experts suggest that investors include Gold ETFs in a diversified investment portfolio, considering the current geopolitical risks and inflation pressures which are working in the favour of gold as a hedge asset. Pallav Agarwal, Certified Financial Planner with Bhava Services LLP, suggests opting for multi-asset allocation funds that dynamically balance commodity exposure over chasing individual gold ETFs. It provides tax efficiency and professional fund management at reduced risk of repeated portfolio rebalancing.
Analysts predict that although the hyper returns of 2025 can be moderated, gold is going to continue its popularity in the medium term based on sustained inflation worries and worldwide economic uncertainty. Prospective returns from gold ETFs would be moderate at an annual rate of 8-12%, and hence they would be ideal for conservative investors that are interested in wealth preservation and modest appreciation.
Disclaimer:
Investments in Gold ETFs are exposed to market risks such as price fluctuations of gold based on global economic conditions and currency movements. The past performance is not a guarantee of future returns. Investors must determine their risk capacity and seek the advice of financial consultants before investing in Gold ETFs. The above content is for information purposes only and should not be considered as any kind of financial advice.