Which gold ETF in India is the better deal today?
A gold ETF deal is not the fund with the lowest rupee price. It is the fund trading closest to, or below, its indicative NAV, with a low expense ratio and enough AUM to trade. Makro compares 42+ gold and silver ETFs on NSE and flags the ones trading at a discount or premium to iNAV.
What to compare before you buy a gold ETF
Price versus iNAV tells you if you are paying extra for the same gold. A discount can be a better entry than a fund that is rich to its gold value. Expense ratio is the yearly drag. AUM and traded value tell you whether you can get in and out without a wide gap.
The same checks apply to silver ETFs. Makro lists gold and silver separately so a cheap silver fund is not mixed into a gold ranking.
Questions
Is GOLDBEES always the best gold ETF?
GOLDBEES is usually the most liquid Indian gold ETF, which matters for spreads. It is not automatically the cheapest versus iNAV on a given day. Compare the premium or discount and the expense ratio before you buy.
What is a gold ETF NAV discount?
If the market price is below the indicative NAV, the ETF is trading at a discount to the gold it holds. If the price is above iNAV, you are paying a premium. Makro calculates that gap so you do not have to.
Gold ETF or physical gold?
An ETF avoids making charges and storage, and you can sell it on NSE during market hours. Physical coins and bars are useful if you want metal you can hold. Makro's ETF Deals page is for the listed funds. Gold Deals is for coins and bars at Indian stores.