Gold has been outshining all asset classes recently. In the midst of uncertain financial markets around the world, gold is clearly being seen as a safe haven right now. In 2009 alone, gold has returned 6 per cent till now.
Gold ETFs (exchange traded fund) have been shining through all this. However, this rally has not translated into good returns for gold mining companies, as is evident from the poor performance of gold mutual funds. Gold mutual funds invest in the stocks of gold mining companies.
Returns generated by gold ETFs (which invest in physical gold) are much higher than returns of gold mutual funds. ETFs have given 29 per cent returns in 2008 and over 8 per cent till now in 2009. As against that, gold mutual funds have given negative returns.
| Gold ETF | 1 month (%) | 3 month (%) | 6 month (%) | 1 year (%) |
Benchmark Gold BeES | 18.5 | 28.5 | 36.7 | 29.3 |
Kotak Gold ETF | 18.5 | 28.4 | 36.6 | 29.2 |
UTI Gold Exchange Traded Fund | 18.4 | 28.3 | 36.6 | 29.2 |
Reliance Gold ETF | 18.2 | 28.0 | 35.3 | 27.2 |
Quantum Gold Fund | 18.4 | 28.2 | 36.7 | 26.1 |
Gold Mutual fund | 1 month (%) | 3 month (%) | 6 month (%) | 1 year (%) |
AIG World Gold Fund (G) | 2.9 | 33.4 | 0.6 | -- |
DSP-BR World Gold - RP (G) | 7.5 | 37.3 | -23.0 | -23.0 |
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