Best Gold ETFs in India to Invest in 2024

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What Is a Gold ETF?

Gold Exchange Traded Fund (ETF) is a financial instrument that provides investors an efficient and liquid means to invest in gold without the necessity of physical possession. Traded on stock exchanges similar to stocks, Gold ETFs offer the advantage of real-time trading and pricing. Each unit of a Gold ETF corresponds to a specific quantity of gold, backed by physical gold of high purity, thus allowing investors to benefit from gold price movements without dealing with the challenges of storage, security, and insurance. These funds are passive investment vehicles that track the price of gold, enabling investment and trading via a dematerialized account for ease and transparency. Gold ETFs eliminate risks of theft, remove storage and carrying costs, and offer tax advantages over physical gold. They are an effective tool for hedging against inflation and currency fluctuations, and contribute to the diversification of an investment portfolio, highlighting their growing popularity among Indian investors as a convenient alternative to owning physical gold.
Best Gold ETFs in India to Start Investing
Following the introduction of gold ETFs on Indian stock exchanges, a variety of financial entities have launched their own gold ETF schemes. Currently, investors in India have access to 13 distinct gold ETF schemes.

Top 10 gold ETFs in India

IDBI Gold Exchange Traded Fund

The IDBI Gold Exchange Traded Fund, offered by IDBI Mutual Fund, is designed for investors interested in the domestic gold market through investments in physical gold, gold-related debt securities, and money market instruments.

NAV: Rs.5,319.49, showing the fund’s current value per unit.
Expense Ratio: A low 0.35%, indicating efficient fund management.
AUM: Rs.94.67 crore, representing the total value of assets managed.
Risk: Classified as High Risk for those accepting volatility for potential gains.
Minimum Investment: Rs.10,000, making it accessible to a wide range of investors.
Returns: Delivered three-year returns of 11.68% and five-year returns of 13.07%, showcasing strong performance over time.

This ETF is a solid option for those seeking gold investment benefits with the added advantages of ETF flexibility and liquidity.

Axis Gold ETF

The Axis Gold ETF, from Axis Mutual Fund House, is designed for those aiming for long to medium-term capital growth through investments in gold, targeting higher returns than gold’s market performance.

NAV: Rs.48.84, indicating the fund’s price per unit.
Expense Ratio: Set at 0.53%, showing the cost of managing the fund.
AUM: Rs.756.85 crore, reflecting the total assets managed by the fund.
Risk: High risk, suitable for investors comfortable with market fluctuations.
Minimum Investment: Rs.5,000 for lump-sum investments, making it widely accessible.
Returns: Reports a three-year return of 10.87% and a five-year return of 12.58%, evidencing strong performance.

This ETF is an attractive choice for those looking to invest in gold with the potential for substantial returns.
Kotak Gold ETF

Kotak Gold ETF

The Kotak Gold ETF facilitates gold investments by mirroring its market price, enabling indirect gold ownership with units representing one gram of gold.

NAV: Rs.49.77, the current unit price.
Expense Ratio: 0.55%, indicating the cost of fund management.
AUM: Rs.2,580.36 crore, reflecting significant investor trust and fund scale.
Risk: High, targeting investors willing to accept market fluctuations.
Minimum Investment: Rs.5,000, making it accessible for lump-sum investments.
Performance: Achieved returns of 11.50% over three years and 12.90% over five years, showing strong growth.

This ETF is a practical choice for those interested in gold investment without the hassle of physical possession.

ICICI Prudential Gold ETF

The ICICI Prudential Gold ETF, offered by ICICI Prudential Mutual Funds, ranks as a top choice for long-term gold investors, aiming to mirror domestic gold price returns.

NAV: Rs.50.15, showing the fund’s per-unit cost.
Expense Ratio: Set at 0.5%, reflecting the fund’s operational cost efficiency.
AUM: Stands at Rs.3332.52 crore, indicating strong investor trust and fund magnitude.
Risk: High Risk, suitable for investors prepared for gold market volatility.
Minimum Investment: Rs.5,000, accessible for starting investments.
Performance: Delivers returns of 10.78% over three years and 12.40% over five years, demonstrating
consistent growth for long-term wealth building.

This ETF is a strategic option for those seeking gold-based wealth creation over the long term.

HDFC Gold Exchange Traded Fund

The HDFC Gold Exchange Traded Fund, managed by HDFC Asset Management Company, is a leading choice for gold ETFs in India, aimed at investors seeking long-term growth with gold.

NAV: Rs.50.29, indicating the current price per unit.
Expense Ratio: At 0.59%, showing the fund’s management cost.
AUM: Rs.3,353.55 crore, evidencing strong investor trust and fund size.Risk: High Risk, for those comfortable with gold market’s volatility.
Minimum Investment: Rs.5,000, offering an accessible entry point.
Performance: Reports three-year returns of 11.00% and five-year returns of 12.40%, demonstrating consistentlong-term growth.

This ETF is a strategic option for leveraging gold’s long-term appreciation potential.

SBI ETF Gold

The SBI ETF Gold, offered by SBI Mutual Fund House, is a top choice for investors seeking long-term growth in gold investments.

NAV: Rs.51.08, reflecting the unit price.
Expense Ratio: At 0.64%, indicating fund operational costs.
AUM: Rs.2,824.08 crore, showing substantial investor interest and fund scale.
Risk: High Risk, targeting those comfortable with gold’s market fluctuations.
Minimum Investment: Rs.5,000, making it accessible for initial investments.
Performance: Delivers three-year returns of 11.6% and five-year returns of 12.9%, demonstrating stronggrowth potential.

This ETF serves as an ideal vehicle for long-term gold investment strategies.

Aditya Birla Sun Life Gold ETF

The Aditya Birla Sun Life Gold ETF, by Aditya Birla Sun Life Mutual Fund, targets investments in physical gold to closely track gold price returns, ideal for long-term growth aligned with gold’s market performance.

NAV: Rs.52.38, showing the price per fund unit.
Expense Ratio: At 0.54%, indicating the fund’s management cost.
AUM: Rs.355.56 crore, reflecting robust investor confidence and fund scale.
Risk: High Risk, for investors willing to handle gold market fluctuations.
Minimum Investment: Rs.5,000, accessible for initial lump sum investments.
Performance: Achieves three-year returns of 11.6% and five-year returns of 12.9%, demonstrating consistent growth.

This ETF offers an effective route for investing in gold with the flexibility and liquidity of ETFs.
Invesco India Gold ETF

Invesco India Gold ETF

The Invesco India Gold ETF, from Invesco Asset Management (India) Private Ltd, is a leading gold ETF without a lock-in period, averaging an 8% ROI since inception, ideal for long-term growth aligned with gold market returns.

NAV: Rs.5,173.46, reflecting the unit’s current market value.
Expense Ratio: At 0.55%, showing the fund’s operational cost.
AUM: Rs.89.3 crore, indicating investor confidence and fund size.
Risk: High Risk, aimed at investors open to market volatility for higher returns.
Minimum Investment: Rs.5,000, facilitating entry for various investors.
Performance: Three-year returns at 11.64% and five-year returns at 12.99%, demonstrating strong growth.

This ETF offers a viable path for investors seeking to match their investment growth with the performance of real gold in the market.

UTI Gold ETF

The UTI Gold ETF, managed by UTI Asset Management Co. Ltd, is ideal for investors focused on high returns from gold and gold-related assets, despite a higher expense ratio.

NAV: Rs.49.68, indicating the price per unit.
Expense Ratio: High at 1.13%, reflecting the fund management costs.
AUM: Rs.817.90 crore, showing strong investor confidence and fund size.
Risk: High Risk, suited for those ready to navigate gold market volatility.
Minimum Investment: Rs.20,000, setting a higher initial investment threshold.
Performance: Delivers three-year returns of 11.1% and five-year returns of 12.6%, demonstrating potential for substantial growth.

This ETF caters to investors aiming for significant growth through focused gold investment strategies.

Quantum Gold Fund

The Quantum Gold Fund, managed by Quantum Asset Management Co. Pvt. Ltd., is designed for long-term investors focused on physical gold.

NAV: Rs.49.39, indicating the unit value.
Expense Ratio: 0.78%, showing fund management costs.
AUM: Rs.154.60 crore, demonstrating investor confidence and fund size.
Risk: High Risk, targeting those open to gold market volatility.
Minimum Investment: A low entry point at Rs.500, making it accessible.
Performance: Reports three-year returns of 11.4% and five-year returns of 12.7%, signaling strong potential for growth.

This fund offers an effective pathway for investing in gold with the potential for solid long-term returns.

Conclusion

Gold ETFs offer a strategic way for investors to access the benefits of gold investment, combining ease of use with accurate price tracking. While not ideal for exclusive long-term investment, they play a crucial role in diversifying portfolios and mitigating risks associated with market downturns. Opening a Demat account, for example with Angel One, could be a practical step towards incorporating gold ETFs into your investment strategy.

Disclaimer: This content is for educational purposes, highlighting the role of gold ETFs in an investment portfolio without recommending specific securities or investment actions.

Axis Gold ETF ICICI Prudential Gold ETF IDBI Gold Exchange Traded Fund Kotak Gold ETF