A Study on Performance Evaluation of Gold Exchange Traded Funds in India: Pre & Post Covid Scenario
1Sura Goverdhan,2 Dr. M. Jeyakumaran
1Research Scholar, Department of Business Administration, Annamalai University, Tamilnadu
2Research Supervisor, Associate Professor, Department of Business Administration, Annamalai University, Tamilnadu
https://doi.org/10.47191/jefms/v5-i4-14ABSTRACT:
For centuries, Indians have had a strong affinity for gold. However, it was only in the year 2007 when India launched its first gold ETF (Gold BeES). The underlying asset of these ETFs is gold. Also, gold ETFs give you exposure to the Indian gold market. Gold Exchange Traded Funds, or Gold ETFs, are open-ended mutual fund schemes based on the ever-fluctuating cost of gold. Physical gold, on the other hand, does not generate an income. Also, the making charges on physical gold are high. Gold ETFs give investors exposure to the gold market. They are an excellent choice of investment for investors looking to beat inflation in the long run.
This paper takes a look at the performance evaluation of gold ETFs in India all through the COVID-19 Pandemic Situation. An evaluation is achieved using overall performance assessment strategies inclusive of the Treynor Performance Index, the Sharpe Performance Index, and the Jensen Performance by measuring the alpha, beta, and preferred deviations of the selected ETFs traded on the NSE. Data for this examination was gathered from the NSE website over a two-year period, from December 1st, 2018 to November 30th, 2020.Gold Exchange Traded Funds, or Gold ETFs, are open-ended mutual fund schemes based on the ever-fluctuating cost of gold. Physical gold, on the other hand, does not generate an income. Also, the making charges on physical gold are high. Gold ETFs give investors exposure to the gold market. They have a look at suggests that the Quantum Gold Fund (ETF) plays moderately nicely in accordance with Sharpe's Model, Treynor's Model, and Jensen's Model.
KEYWORDS:
Gold ETF, Sorting Ratio, Dematerialized, mutual fund, derivatives
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