Gold ETFs in India:- a Descriptive and Parametric Evaluation

Gold ETFs in India:- a Descriptive and Parametric Evaluation

Registration ID: IJNRD_201037

Published ID: IJNRD2307369

DOI: Click Here to Get

Dr Joseph James V , Maninath R

Keywords: Gold ETF, Derivatives, Hedge, Speculation, Arbitrage, Financial engineering.

Abstract The present study looks at the benefits and drawbacks of the gold Exchange Traded Funds (ETFs), a newly invented autonomously tradable derivative tool built around gold, in the Indian context. The major concern over the initiation of the study is to assist a moderately risk seeking investor to have some guidelines to develop his investment portfolio. Investors nowadays are more rational, prudent, educated and hence rather selective in determining the mode of channelizing their funds. Rather they usually try to outperform the market both with respect to return and risk. In this context the researcher attempts to evaluate Gold ETF as an investment avenue from the point of view of a moderately risk seeking investor. The investigation additionally suggests a detailed and critical comparative evaluation of gold ETF effectiveness with the stock market in general in terms of risk and return from the perspective of a modestly risk seeking investor. The study is conducted with two major objectives. The first is to review a critical and descriptive profile of gold Exchange Traded Funds (ETFs). The second is to make a cross sectional evaluation of funds along with a comparison of fund with the market from the point of view of a moderately risk seeking investor in a risk to reward phase. The study evaluated the funds through descriptive statistics in regard to mean daily log return, variability of return and normality of the series. A correlation analysis between and among the fund return and the market return has also been performed. Considering the independence of distribution of components in the dataset a paired sample t test has been conducted with respect to fund return and the market. The Johansen co-integration test was used to determine the long-term consistency of fund returns across time and in relation to the market. The study revealed that gold ETF is a lucrative derivative instrument for a moderately risk seeking investor. ETFs can also be used as an instrument for hedge. It is also found that the funds are capable of providing consistent return invariably providing the same return irrespective of the fund or the market. Based on the study, it is suggested that gold ETFs are a profitable credit default swap device for a tolerably risk-averse investor. ETFs are additionally useful as a hedge mechanism. It has also been discovered that investments are able to deliver regular income stream, undoubtedly supplying the very same return regardless of the fund or market.

Published Paper   E-Certificate

"Gold ETFs in India:- a Descriptive and Parametric Evaluation", IJNRD - INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT (www.IJNRD.org), ISSN:2456-4184, Vol.8, Issue 7, page no.d594-d604, July-2023, Available :https://ijnrd.org/papers/IJNRD2307369.pdf

Volume 8 Issue 7, July-2023

Pages : d594-d604

Paper Reg. ID: IJNRD_201037

Published Paper Id: IJNRD2307369

Downloads: 000121199

Research Area: Social Science and Humanities 

Country: Kollam, KERALA, India

Published Paper PDF: https://ijnrd.org/papers/IJNRD2307369.pdf

Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2307369

Journal Name: INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT(IJNRD)

ISSN: 2456-4184 | IMPACT FACTOR: 8.76 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.76 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJNRD (IJ Publication) Janvi Wave

This work is licensed under a Creative Commons Attribution 4.0 International License and The Open Definition

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