Top Two Performing Gold ETF FoF

Gold ETFs (Exchange Traded Funds) Fund of Funds (FoF) are gaining traction among investors who seek exposure to gold as a hedge against market volatility and inflation. Two standout performers in this category are the UTI Gold ETF FoF Direct – Growth and Invesco India Gold ETF FoF Direct – Growth. In this blog, we will explore these two funds, their performance, investment objectives, fund management, and key metrics to help you understand why they are the top choices for investors.

UTI Gold ETF FoF Direct – Growth

Overview and Fund Details
UTI Gold ETF FoF Direct – Growth is a relatively new Gold/Precious Metals mutual fund scheme from UTI Mutual Fund. Launched on October 10, 2022, the fund has rapidly garnered attention for its impressive returns. As of June 30, 2024, the fund manages assets worth Rs 116 Crores with an expense ratio of 0.22%, making it an attractive option for cost-conscious investors.

Performance Highlights

• 1-Year Return: 21.88%
• Since Inception: 19.84% average annual returns

The fund’s performance has been impressive, especially considering its short track record. With an annual return of 21.88% over the past year, it has outperformed many of its peers in the Gold ETF category.

Investment Objective
The primary objective of UTI Gold ETF FoF Direct – Growth is to provide returns that closely correspond to those provided by the UTI Gold ETF. It achieves this by investing predominantly in units of the UTI Gold ETF, thus giving investors indirect exposure to gold price movements.

Fund Management
The fund is managed by two experienced fund managers, Sharwan Kumar Goyal and Ayush Jain, who bring their expertise in gold and precious metals investment strategies. 

Invesco India Gold ETF FoF Direct – Growth

Overview and Fund Details
Invesco India Gold ETF FoF Direct-Growth is one of the seasoned players in the Gold/Precious Metals mutual fund category. Launched on January 1, 2013, this fund has been in existence for over 11 years, making it one of the older funds in its segment. With assets under management worth Rs 77 Crores and an expense ratio of 0.20% as of June 30, 2024, it stands out for its longevity and consistent performance.

Performance Highlights

• 1-Year Return: 21.49%
• Since Inception: 6.36% average annual returns

Invesco India Gold ETF FoF Direct-Growth has shown a solid performance over the years. Despite being more conservative compared to newer funds, it has doubled investors’ money every six years, demonstrating its ability to deliver consistent returns.

Investment Objective
The scheme’s objective is to generate returns that mirror those of its underlying investment in Invesco India Gold ETF. This approach provides investors with exposure to gold prices while benefiting from the operational ease and cost-efficiency of the ETF structure.

Fund Management
Herin Shah, the fund manager of Invesco India Gold ETF FoF Direct-Growth. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.