Aditya Birla SL Gold ETF

About Aditya Birla Sun Life Gold ETF

• Aditya Birla Sun Life Gold ETF is an open-ended fund that mirrors the price of physical gold.
• Offered by Aditya Birla Sun Life Mutual Fund House, the scheme was launched on May 13, 2011.
• The fund is managed by Sachin Wankhede.
• Aditya Birla Sun Life Gold ETF is passively managed, aiming to replicate the price and performance of gold through direct investment.
• The ETF units are listed on the BSE and NSE, allowing them to be bought and sold at real-time market prices.
• This provides investors with a highly liquid and low-cost way to invest in gold.
• As of June 30, 2024, the assets under management (AUM) stood at ₹792.87 crore.

Investment Objective & Benchmark

• The performance of the Aditya Birla Sun Life Gold ETF is benchmarked against the domestic price of physical gold and compared with other gold ETFs in the industry.
• The scheme’s investment objective is to produce returns that correspond with the performance of gold.
• Traditionally held in physical form, gold comes with drawbacks such as concerns over purity and safety, as well as high costs including making charges, storage fees and liquidation expenses.
• Aditya Birla Sun Life Gold ETF offers investors the advantages of investing in gold without the drawbacks associated with physical gold ownership.
• It’s suitable for those investors seeking returns that align with the long-term performance of gold.
• The fund is classified as having a high risk level.

Asset Allocation & Portfolio Composition

• In terms of allocations, physical gold constitute between 95% and 100% of the total assets.
• Debt and money market instruments, including cash and cash equivalents, make up between 0% and 5% of the total assets.
• The fund’s allocation includes 98.11% in gold, 0.22% in reverse repo and 1.67% in net receivables.
• As of July 29, 2024, this ETF delivered annualised returns of 14.75% for a year, 11.63% for three years and 13.33% for five years.
• For the same periods, domestic gold prices have given returns of 14.27% for one year, 12.33% for three years and 13.87% for five years.
• Since its inception, the Aditya Birla Sun Life Gold ETF’s compound annual growth rate (CAGR) is at 7.96%.