Tata Gold ETF Delivers Strong Returns Ahead of Dhanteras as Gold Prices Rise

High physical gold prices are pushing marginal investors toward exchange-traded funds as Dhanteras 2026 approaches.

Investment Options

Buying physical gold requires a large upfront payment, but gold ETFs let people invest smaller amounts based on the price of a single unit on the NSE or BSE. Most units represent either one gram or 0.01 gram of physical gold, and trades start at a minimum of one whole unit.

Performance Figures

The Tata Gold Exchange Traded Fund, launched in January 2024, has given lump-sum investors a 17.50% return in the last one year. For SIP investors, the fund's annualised return is 21.50% over the last two years and roughly 27% since its inception. By 2:45 PM on Friday, the fund's NAV price stood at ₹21.64 while the MCX gold rate reached ₹1,42,820 per 10 grams.

Expert Views

Anuj Gupta, a SEBI-registered investment expert, noted that gold serves as a hedge against inflation and has outperformed other assets by a wide margin. He added that gold prices are expected to rise further due to the US Midterm Elections, an AI meltdown, and low interest rates driven by cooling crude oil prices. Meanwhile, Pankaj Mathpal, MD and CEO at Optima Money Managers, explained that investors should compare category returns, as a lower premium on an ETF indicates a better chance of strong future returns.

Context

Gold exchange-traded funds offer a digital and paperless way to hold gold without worrying about locker fees or purity issues. They trade on stock exchanges just like company shares during normal market hours.