Mirae Asset Gold ETF Fund of Fund
(An open-ended fund of fund scheme investing in units of Mirae Asset Gold ETF)
Fund Overview
The Mirae Asset Gold ETF is a conventional exchange-traded fund (ETF) that aims to replicate the performance of the domestic price of physical gold. It offers a simple, passive investment for individuals seeking exposure to gold in their portfolio without the complexities of storing physical gold.
With a low expense ratio and a clear investment objective, it is positioned for long-term investors who wish to diversify their assets and hedge against inflation and market volatility.
A key decision for an investor is whether to invest directly in this ETF, which requires a Demat account, or through its "Fund of Fund" counterpart, which has a higher fee but is accessible like a traditional mutual fund.
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Key Details
| Fund Name | Mirae Asset Gold ETF |
|---|---|
| Ticker Symbols | NSE: GOLDETF, BSE: 543781 |
| Fund Type | An open-ended Exchange Traded Fund (ETF) tracking domestic physical gold prices. |
| Investment Objective | To generate returns in line with the performance of physical gold, subject to tracking errors. |
| Allotment Date | 20th February 2023 |
| Benchmark | Domestic Price of Physical Gold |
Key Financials & Risk Profile (as of April 30, 2025)
The TER of 0.32% is competitive. AUM of over ₹750 Crore indicates strong liquidity and investor confidence. The tracking error is reasonable, showing the fund is closely tracking the price of gold, with minor deviations due to expenses.
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Holdings & Asset Allocation (as of April 30, 2025)
| Asset | % of Total Assets |
|---|---|
| Gold | 97.77% |
| Cash & Other Receivables | 2.23% |
| Total | 100.00% |
The asset allocation is exactly as expected for a Gold ETF. The ~98% allocation to physical gold ensures it closely tracks the commodity's price, while the small cash component is for liquidity and expense management.
Performance & Returns Analysis (as of April 30, 2025)
Lump-Sum Investment Performance
The fund has marginally underperformed its benchmark, as expected. The "tracking difference" is mainly due to the Total Expense Ratio (TER).
| Period | Mirae Gold ETF Returns | Benchmark Returns | Tracking Difference |
|---|---|---|---|
| Last 1 Year | 29.98% | 31.30% | -1.32% |
| Since Inception (CAGR) | 25.02% | 26.24% | -1.22% |
SIP Performance (Benchmark)
The underlying asset (gold) has shown excellent performance in SIPs over the last 5 and 10 years, highlighting the long-term wealth-creation potential of systematic gold investing.
| Period | Monthly SIP | Total Invested | Value of Investment | XIRR |
|---|---|---|---|---|
| 5 Years | ₹10,000 | ₹6,00,000 | ₹9,60,777 | 19.5% |
| 10 Years | ₹10,000 | ₹12,00,000 | ₹27,19,575 | 16.1% |
Peer Comparison: ETF vs. Fund of Fund (FoF)
The most direct peer is the Mirae Asset Gold ETF Fund of Fund. The FoF is a mutual fund that invests in the underlying ETF, making it accessible to investors without a Demat account.
| Parameter | Mirae Asset Gold ETF | Mirae Asset Gold ETF FoF |
|---|---|---|
| How to Invest | Demat Account Required | No Demat Required |
| Expense Ratio (TER) | 0.32% | 0.64% (Regular Plan) |
| AUM (in Crore) | ₹768.56 | ₹87.18 |
| Since Inception Return | 25.02% (CAGR) | 44.16% (Simple Annualized) |
Analysis
Cost: The primary difference is cost. The FoF's expense ratio is double that of the ETF (0.64% vs. 0.32%). This is because the FoF adds its own management fee on top of the underlying ETF's fee.
Convenience: The FoF is more convenient for investors who do not have a Demat account. The choice is clear: if you have a Demat account, the ETF is cheaper. If you prefer mutual funds, the FoF is available at a higher long-term cost.
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