Axis Gold ETF - A Comprehensive Investment Guide

The Axis Gold ETF is a popular investment option for those looking to diversify their portfolio and hedge against inflation. It allows you to invest in gold, a valuable and scarce commodity, through the stock market.

With an expense ratio of 0.3%, the Axis Gold ETF is a cost-effective way to invest in gold. This low expense ratio ensures that a larger portion of your investment goes into buying gold, rather than paying fees.

The Axis Gold ETF is backed by physical gold, which is stored in secure vaults and managed by Axis Asset Management. This provides investors with peace of mind, knowing that their investment is secure and tangible.

The investment details of Axis Gold ETF are straightforward. The minimum investment required is ₹5,000, which can be made via lumpsum or SIP modes.

You can invest in Axis Gold ETF via both lumpsum and SIP modes. The minimum SIP amount in the fund is not specified, while the minimum lumpsum investment is ₹5,000.

Here's a summary of the investment details:

The Axis Gold Fund - Direct Growth plan has a low minimum investment requirement of ₹5,000.00, making it accessible to a wide range of investors.

To invest in the Axis Gold Fund, you can follow these easy steps: click on the "Invest Now" button, scan the QR code to download the app, create your account, complete the KYC process, and then search for the Axis Gold Fund.

The fund has an expense ratio of 0.17%, which is subtracted from the fund's annual returns, impacting net returns for investors.

You can redeem your investments in the Axis Gold Fund easily by logging into the ET Money app, going to the investment section, and putting in a redemption request.

The Axis Gold Fund currently has an assets under management (AUM) of approximately ₹706 Crs as of Dec 31, 2024.

The portfolio allocation of the Axis Gold ETF is quite straightforward. The scheme invests primarily in gold, with a weightage of 98.44%.

This means that the majority of your investment will be in gold, which is the primary goal of this ETF. A small portion, 1.46%, is invested in net receivables, and a tiny fraction, 0.10%, is invested in CBLO.

Here's a breakdown of the portfolio allocation:

This allocation is designed to closely track the returns generated by the Domestic Price of Gold, which is the scheme's benchmark.

The Axis Gold ETF has consistently delivered positive returns in January, with 9 out of 15 years showing a gain. In fact, the maximum positive change in January was 8.05% in 2016.

The average positive change in January is a respectable 3.62%. This is a great indication of the fund's stability and potential for growth.

The fund's annualized returns for the past 1-year, 3-year, 5-year, and 10-year periods are 22.77%, 16.47%, 13.53%, and 9.91% respectively. However, it's worth noting that these returns are not adjusted for the expense ratio.

The expense ratio of the Axis Gold Fund - Direct Growth plan is 0.17%, which is subtracted from the fund's annual returns, impacting net returns for investors.

Here's a summary of the fund's annualized returns over different time periods:

These returns are impressive, especially considering the fund's stability and potential for growth.

The AXIS Gold ETF is an open-ended fund that allows you to exit anytime subject to applicable exit loads: Nil.

The fund's investment objective is to generate returns that closely correspond to returns generated by Axis Gold ETF.

AXIS Gold ETF has a benchmark index of Price of Physical Gold, and as of 15 January 2025, its current NAV is ₹66.08.

Here's a quick snapshot of the fund's performance:

With assets under management (AUM) worth ₹1,184.01 (Cr) as of 15 January 2025, AXIS Gold ETF is a significant player in the market.

When evaluating a stock's performance, it's essential to consider its hits and misses. This can be measured by looking at metrics like 1M, 3M, 6M, 1Y, and 5Y returns.

A 1M return is a crucial indicator of a stock's short-term performance. If a stock shows a 1M return, it means the investor has made a profit in a relatively short period.

The 3M, 6M, and 1Y returns provide a more comprehensive view of a stock's performance over a medium-term period. These metrics help investors understand if a stock is consistently performing well or if it's experiencing a downturn.

A 5Y return is a long-term indicator that shows a stock's performance over an extended period. If a stock shows a 5Y return, it indicates that the investor has made a profit over a significant period.

Here are some key metrics to look out for:

To further evaluate a stock's performance, it's also essential to consider its Price-to-Earnings (PE) ratio. If the PE ratio is high (above 80 percentile), it may indicate that the stock is overvalued. Conversely, a low PE ratio (below 30 percentile) may suggest that the stock is undervalued.

Understanding the risk levels of a fund is crucial in making informed investment decisions. The fund's standard deviation, also known as volatility, is a measure of how much the fund's value can fluctuate over time.

The standard deviation of a fund can be found in the risk analysis section, where it's expressed as a percentage. For example, a fund with a standard deviation of 5% means that its value can be expected to fluctuate by 5% over a certain period.

Sharpe ratio, on the other hand, is a measure of a fund's risk-adjusted return. A higher Sharpe ratio indicates that the fund has generated higher returns relative to its risk. The Sharpe ratio is also expressed as a percentage, and a fund with a Sharpe ratio of 2% is considered to be a relatively safe investment.

Beta measures a fund's volatility relative to the overall market. A beta of 1 means that the fund's value moves in line with the market, while a beta greater than 1 indicates that the fund is more volatile than the market.

Alpha, also known as excess return, is the return on investment that a fund generates in excess of the market's return. A positive alpha indicates that the fund has generated higher returns than the market, while a negative alpha indicates that the fund has underperformed the market.

Here's a snapshot of the risk analysis metrics for a fund:

The investment objective of a fund is its main goal, and it's essential to understand it before investing. The AXIS Gold ETF has a clear investment objective: to generate returns that closely correspond to returns generated by Axis Gold ETF.

This fund is designed to track the performance of gold, which can be an attractive option for investors looking to diversify their portfolio. The fund's benchmark index is the Price of Physical Gold, which gives you an idea of its investment strategy.

The AXIS Gold ETF aims to provide returns that are in line with the performance of gold, as stated in its investment objective. This means that the fund's performance will be closely tied to the price of gold.

Investors should consider the risk associated with this fund, which is categorized as High. This is a crucial factor to consider before investing in any fund.