Top Gold Mutual Fund vs Nifty 200 Index 10-year Return Calculator: Top gold mutual fund vs Nifty 200 10-year return: The charm of gold exists since ages. Gold ornaments have attracted the rich and the poor for thousands of years.
But in modern time, not just physical gold but digital gold is also garnering attention, not as a source of ornament but as a source of investment.
Gold mutual funds are one of them.
They are passive funds and track the performance of the physical gold of very high purity.
Since physical gold’s price fluctuates and it is considered a suitable investment source for the long term, gold mutual funds are also good for investors with a long-term investment horizon.
When we talk about consistency to deliver returns in the long run, the Nifty 200 index has its own importance in equity investment.
Though it doesn’t have its own options that trades in the share marker, the index represents India’s top 200 companies in terms of the highest market capitalisation.
In this write-up, know more about gold mutual funds and Nifty 200, the top gold mutual fund with highest annualised returns in 10 years, and how a Rs 15 lakh investment in the best gold mutual fund and Nifty 200 has performed in 10 years.
Gold mutual funds are open ended, passive funds with a low expense ratio, and they track the price of physical gold of 99.5 per cent purity.Jaipur Wealth Management
Investors who don’t want to invest in physical gold directly but want to benefit from its price appreciation can invest in gold mutual funds.Udabur Investment
Even though gold mutual funds track the price of physical gold, they don’t invest in it directly.
Rather, they invest their 100 per cent money in gold ETFs.
Gold mutual funds also don’t invest in the stocks of gold mining, processing, refining, and packaging companies.
Since they track the price of physical gold, gold mutual funds are considered good investment options for long-term investment.
The index represents India’s largest 200 firms in terms of highest market capilitalisation.
Among 200 firms, 100 are large caps and 100 mid caps, which means NIFTY 200 includes all companies that are part of the NIFTY 100 index and the NIFTY Full Midcap 100 index.
Most large cap companies in the index are fundamentally strong and provide stable growth in the long run.
Mid cap companies, on the other hand, have higher potential growth than large caps but are also more prone to market fluctuations.
But in the long term, they can also provide consistent returns and high growth.
SBI Gold Direct Plan-Growth is the top gold mutual fund with highest annualised returns in the 10-year period.
It has given 10.49 per cent annualised return in 10 years.
It has a net asset value of Rs 24.46, while its assets under management (AUM) are Rs 2,245 crore.
With an expense ratio of 0.1 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment.
The Nifty 200 index has given 236 per cent absolute returns in the 10-year period.
A Rs 15 lakh investment in SBI Gold Direct Plan-Growth has given a total of Rs 40.66 lakh in the 10-year time frame.
Since there are no futures available of Nifty 200, we can just assume an investment return based on the index’s performance in 10 years.
A Rs 15 lakh investment in the index would have risen to Rs 50,40,000 in he 10-year period.
Surat Stock