HDFC Gold ETF Overview and Analysis

HDFC Gold ETF is a popular investment option for those looking to diversify their portfolio with gold. It's an open-ended exchange-traded fund that allows investors to buy and sell units on the stock exchange.

The fund invests in gold, making it a convenient way to own gold without having to physically store it. The gold is stored in a demat account, which is a digital version of a physical safe deposit box.

The fund has a low expense ratio of 0.5%, making it a cost-effective option for investors. This low expense ratio means that more of your money stays invested in gold, rather than going towards fees.

HDFC Gold ETF is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), making it easily tradable.

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HDFC Gold ETF is a gold Exchange-Traded Fund that allows investors to invest in gold without holding the physical asset.

It tracks the price of gold and is traded on stock exchanges, providing a transparent way to gain exposure to the gold market.

HDFC Gold ETF offers a cost-effective and liquid way to invest in gold, with minimal expense ratios.

By investing in HDFC Gold ETF, you can diversify your portfolio and gain exposure to the gold market with a 5-year Compound Annual Growth Rate (CAGR) that is comparable to other top gold ETFs in India.

Investing in HDFC Gold ETF is a reliable option for those seeking growth with reasonable fees.

HDFC's Gold ETF has slightly lower returns compared to other options, but its reputation as a trusted brand makes it a solid choice.

This ETF is a great option for investors who value reliability over high returns.

The fees associated with HDFC's Gold ETF are reasonable, making it a cost-effective option for those looking to invest in gold.

By investing in HDFC's Gold ETF, you can tap into the growth potential of gold while benefiting from the backing of a well-established brand.

HDFC Gold ETF is a digital investment option that stores your gold holdings in a Demat account, eliminating concerns about physical storage and theft.

This means you can access your gold investments easily and securely, without the hassle of storing physical gold at home.

One of the key benefits of HDFC Gold ETF is that it serves as a buffer against market volatility, providing a stable investment option during uncertain times.

Gold ETFs also offer the advantage of no entry or exit loads, making it a cost-effective investment option for investors.

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HDFC Gold ETF offers a convenient way to invest in gold, as it is stored digitally in your Demat account, eliminating storage and theft concerns.

You can easily buy and sell HDFC Gold ETF units online, without worrying about physical storage or security risks.

One of the significant benefits of HDFC Gold ETF is that it serves as a buffer against market volatility, helping you ride out market fluctuations.

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This can be especially helpful during times of economic uncertainty, when gold prices tend to rise.

No entry or exit loads are applicable to HDFC Gold ETF, making it a cost-effective investment option.

This means you won't have to pay any additional fees when you buy or sell your units.

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Holding onto your HDFC Gold ETF for less than three years can be a costly mistake, as gains are taxed as per your income tax slab rate.

In India, the tax laws are clear about Gold ETFs, and it's essential to understand these rules for effective financial planning.

If you sell your HDFC Gold ETF within three years, you'll be taxed on the short-term capital gains, which is a significant consideration for investors.

Holding your HDFC Gold ETF for over three years can provide tax benefits, as the long-term capital gains are taxed at 20% with indexation benefits.

Indexation benefits can help reduce taxable gains, which can be a substantial advantage for long-term investors.

The HDFC Gold ETF has consistently delivered positive returns in January, with a maximum positive change of 5.60% in 2016 and an average positive change of 3.63% over the years. This suggests that investing in the ETF during this time can be a good strategy.

One of the key benefits of investing in the HDFC Gold ETF is its relatively low negative returns, with a maximum negative change of -3.26% in 2011 and an average negative change of -1.73% over the years.

Here's a breakdown of the ETF's performance over different time periods:

The ETF's long-term performance is also impressive, with a 10-year return of 94.66% and a 5-year return of 60.11%. This suggests that investing in the HDFC Gold ETF can be a good long-term strategy.

The Returns section gives us a clear picture of how our investment has performed over time.

Looking at the latest value, we see that a ₹10000 investment on 24-May-21 is now worth ₹10026.40.

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The absolute returns show a 0.26% increase, which is a relatively small gain.

This is reflected in the annualised returns, which are not provided for the 1 Week period.

In comparison, the category average for the 1 Week period is a -2.70% decrease.

Here's a breakdown of the returns for different periods:

We can see that the 1 Month and 3 Month periods have shown significant gains, with absolute returns of 4.45% and 5.86% respectively.

However, the YTD period has seen a -2.99% decrease, which is a notable drop.

It's worth noting that the category average for the 1 Month period is a -0.83% decrease, which is lower than our investment's return.

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Seasonality Analysis can be a powerful tool in understanding market trends.

January has historically been a good month for HDFC Mutual Fund - Gold Exchange Traded Fund, with 9 out of 15 years showing positive returns.

In fact, the average positive change in January is a respectable 3.63%.

The best January return was 5.60% in 2016, a significant boost to any investment portfolio.