Top 5 gold ETF funds in India
Gold is the all-time preferred asset for investment. Right from ancient times, people have invested in gold for their generations. Investment in Gold protects investors from market inflation and volatility.
These days, People prefer digital investment in gold over Physical investment. Gold ETFs have emerged as a preferred investment choice for Indians seeking exposure to gold investment. There are many Asset Management Companies offering GOLD ETF schemes for investment. The Indian Mutual Fund Market is crowded with schemes offering Gold ETFs. In this blog, we will explore the Top 5 gold ETF funds in India.
Advantages of investing in Gold ETFs.
- Gold ETFs track the domestic price of Gold. Investment is transparent and cost-effective.
- Investors enjoy liquidity. They can sell at any time when required.
- It eliminates the bother about purity, storage, and security.
- The Expense Ratio of ETF is very low. So it becomes very cost-effective. The expense ratio of ETF funds is lower than index Fund.
Top 5 Gold ETFs in India for 2025
Based on market capitalization, liquidity, and historical returns, here are the leading gold ETFs in India as of mid-2025:
|
Rank |
Fund Name |
AUM (₹ Cr) |
1Yr Return (%) |
Year of Launch |
Expense Ratio* |
|---|---|---|---|---|---|
|
1 |
Nippon India ETF Gold BeeS |
5,168.88 |
37.20 |
2007 |
0.80% |
|
2 |
SBI Gold ETF |
2,644.09 |
37.52 |
2009 |
0.73% |
|
3 |
Kotak Gold ETF |
1,984.14 |
37.34 |
2007 |
0.55% |
|
4 |
HDFC Gold Exchange Traded Fund |
1,906.09 |
37.32 |
2010 |
0.59% |
|
5 |
ICICI Prudential Gold ETF |
1,905.05 |
37.59 |
2010 |
0.50% |
*Normally, Expense ratios for gold ETFs are low. But investors should check the latest figures with their broker or on the fund’s website.
Points to remember while investing in GOLD EFTs.
- Investors should invest in Gold ETFs. of known and reputed AMCs.
- Higher AUM is better for the investment because investor don’t face liquidity issues while selling their GOLD ETFs. There is no problem of liquidity.
- Yearly returns of GOLD ETFs of all standards AMCs are more or less the same. They are investing all the AUM in Gold or equivalent. We have given below a 5-year returns chart for above top 5 GOLD ETFs.
- As compared to the Mutual Funds of any category, the Expense Ratio of GOLD ETFS is very less. The expense ratio of all AMCs is more or less the same.
- For investing in ETF, we require the DMAT AC. So, for investing in the GOLD ETF, DMAT AC is required.
5-Year CAGR Returns (Approximate)
|
ETF Name |
2024 |
2023 |
2022 |
2021 |
2020 |
|---|---|---|---|---|---|
|
Nippon India ETF Gold BeES |
36.5% |
13.8% |
7.0% |
6.2% |
14.5% |
|
SBI Gold ETF |
36.7% |
13.7% |
7.1% |
6.3% |
14.6% |
|
Kotak Gold ETF |
34.2% |
12.4% |
7.2% |
6.1% |
14.3% |
|
HDFC Gold ETF |
36.4% |
13.6% |
7.2% |
6.3% |
14.7% |
|
ICICI Prudential Gold ETF |
32.0% |
12.2% |
7.3% |
6.0% |
14.7% |
*Note: Figures are rounded and based on available trailing returns; actual annual returns may vary slightly year to year.
Nippon India ETF Gold BeES delivered an average return of 15.6% over the last 5 years. All four other ETFs have also yielded a return of 15% (Approx.) in the previous five years. 15% is a good return by any standard. It is much more than the return given by Fix Securities. Also, investment is safe and stable. There is no danger of market volatility and risk. Sometimes, Gold investments even beat the equity market returns.
Conclusion:-
- The Gold ETFs are one of the best, cost-effective options available to investors for investing in GOLD.
- This option is very safe as the invested money is in digital form. There is no risk of theft, degradation, like physical gold.
- Over the long term, Gold investment has given an average return of 10 to 13 %.
- While selecting the GOLD ETFs, investors should invest in ETFs of a reputed AMC, and they should prefer the ETFs with having large AUM (Market CAP). This will give them the required liquidity for their investment. The investor requires the DMAT AC to invest in the GOLD ETF.
- It is a wise decision to invest in GOLD. An investment portfolio is never complete without a Gold investment. As said by J.P. Morgan. “Gold is money. Everything else is credit.”
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