Top Gold ETFs: Which Gold ETF has given the highest returns in 3 years, should you invest?

News Topical, Digital Desk : Gold and silver prices are at their peak. But now you don't need lakhs to invest in gold. In this digital age, you can invest in gold for as little as 500 rupees. We're not talking about digital gold here, but gold ETFs. 

Currently, if you want to buy gold digitally, gold ETFs are safer, as SEBI (the stock market regulator) has expressed concerns about digital gold purchased through UPI apps. 

You can invest in Gold ETFs through both lumpsum and SIP methods. First, let's find out which Gold ETFs have delivered the highest returns over the past three years. Also, what is their NAV (Number of Units)

How to invest?

Commodity expert Ajay Kedia always recommends that if you want to invest in gold or silver ETFs, you should choose a SIP. SIPs allow you to invest over a fixed period of time, thus balancing market fluctuations. 

Understand the magic of SIP with an example

Let's say that the month you started investing, gold was cheap. So, you got 40 units for Rs 1,000. This means that one unit cost Rs 25. The following month, as the price of gold increased, you got only 33 units for Rs 1,000. Now, the price of one unit was Rs 30. Due to the increase in gold prices, one unit of your ETF increased from Rs 25 to Rs 30.

You will now earn a profit on the units you purchased at the lower price (40 units for ₹25). You will earn a profit of ₹5 (₹200) on the 40 units you purchased in the first month. Additionally, you will earn a profit on the current units (33.3 units for ₹30) when the price increases further.

Simply put, think of it like this: you bought a food item at a low price when its price was low. Now the price of that item has increased, but you're relieved because you already bought it at a low price. 

Should you invest?

If you want to invest in gold but are unable to buy it due to lack of sufficient funds, then Gold ETF is best for you. 

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