Gold Exchange-Traded Funds (ETFs) have gained immense popularity among Indian investors looking to benefit from the value of gold without the challenges of physical ownership. These funds offer a simple, transparent, and cost-effective way to invest in gold, combining professional management with convenience.
In this guide, we’ll delve into the best Gold ETFs in India, exploring their longevity, asset under management (AUM), professional management strategies, and historical performance, helping you make an informed decision for your portfolio.
Here are the top-performing gold ETFs in India for 2025, offering a blend of stability and strong returns. Factors such as asset under management (AUM), performance over the last years, and expense ratios are crucial when selecting gold ETFs in India.
| Top Gold ETFs in India | Market Cap | 5 Yr Return |
|---|---|---|
| 1. Birla Sun Life Gold ETF | 991.94 Cr | 95.13% |
| 2. Axis Gold ETF | 1272.65 Cr | 94.81% |
| 3. HDFC Gold ETF | 6762.83 Cr | 94.23% |
| 4. Kotak Gold ETF | 5788.91 Cr | 93.27% |
| 5. Nippon India ETF Gold BeES | 16498.12 Cr | 88.32% |
These Top 5 Gold ETFs in India provide solid returns while offering liquidity, making them excellent choices for those looking to diversify with gold.
Gold Exchange-Traded Funds (ETFs) are specialized investment funds listed and traded on stock exchanges, designed to mirror the price movements of gold. Each unit of a Gold ETF represents physical gold of high purity (typically 99.5% or higher), which the fund’s custodian securely holds. In India, Gold ETFs are regulated by the Securities and Exchange Board of India (SEBI) and are offered by prominent mutual fund companies.
The primary goal of Gold ETFs is to provide investors with an efficient way to gain exposure to gold's price performance without the challenges of owning, storing, or securing physical gold. Unlike traditional investments in gold jewelry or bars, Gold ETFs eliminate concerns about making charges, purity, or theft.
Additionally, investing in Gold ETFs offers tax efficiency compared to holding physical gold. Long-term capital gains tax benefits apply when held for over three years, making them a financially prudent choice for investors seeking stability and growth over the long term.
Explore the top-performing Gold ETFs in India, offering a reliable hedge against inflation and market volatility. This section highlights key funds with strong returns, low expense ratios, and robust liquidity to help you make informed investment decisions.
The Birla Sun Life Gold ETF is one of the best gold ETFs in India, commonly called BSLGOLDETF, it is managed by Birla Sun Life Mutual Fund and is recognized for its expert management and well-thought-out investment strategies. Backed by Birla Sun Life's strong reputation in the financial sector, BSLGOLDETF is managed by experienced professionals who carefully monitor market movements to optimize returns.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 27.18 | 27.18 | 95.13 |
AXISGOLD, offered by Axis Mutual Fund, stands out as another best Gold ETFs in India due to its professional management and strategic investment approach. Managed by a team of seasoned professionals, AXISGOLD focuses on maximizing returns while minimizing risk. This ETF has gained popularity among investors seeking reliable gold exposure as part of a diversified portfolio.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 28.85 | 63.27 | 94.81 |
HDFCGOLD, managed by HDFC Mutual Fund, is one of the largest gold ETFs in India in terms of assets under management (AUM). This ETF gives investors direct exposure to gold, making it ideal for those seeking a safe haven during market volatility.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 27.93 | 62.12 | 94.23 |
KOTAKGOLD, managed by Kotak Mutual Fund, is one of the best gold ETFs in India known for its consistent performance and strong returns. Focused on capital appreciation, KOTAKGOLD has a proven track record of outperforming its benchmarks, making it a standout choice for investors looking to maximize their gold investments. Its proactive investment strategy and emphasis on delivering long-term wealth creation have earned it a solid reputation in the Gold ETF space.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 28.71 | 62.20 | 93.27 |
Nippon India ETF Gold BeES, commonly known as GOLDBEES, is one of the best Gold ETFs in India, offered by Nippon India Mutual Fund (formerly Reliance Mutual Fund). As India's oldest and largest Gold ETF, GOLDBEES has consistently provided investors with a reliable and stable option for investing in gold. Its longevity and large size in the market make it a preferred choice for those seeking stability and liquidity in their gold investments.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 27.98 | 61.46 | 88.32 |
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Check out the tables below showcasing the top-performing Gold ETFs in India, ranked by their 1-year and 5-year returns, to help you make informed investment decisions.
| Top 10 Gold ETFs in India | 1 Year Return | 5 Year Return |
|---|---|---|
| LIC MF Gold ETF | 29.06 | 100.39 |
| Axis Gold ETF | 28.85 | 94.81 |
| Kotak Gold ETF | 28.71 | 93.27 |
| ICICI Pru Gold ETF | 28.57 | 94.10 |
| UTI Gold ETF | 28.31 | 90.80 |
| SBI Gold ETF | 28.01 | 93.83 |
| Nippon India ETF Gold BeES | 27.98 | 88.32 |
| HDFC Gold ETF | 27.93 | 94.23 |
| Quantum Gold Fund ETF | 27.21 | 92.49 |
| Aditya Birla SL Gold ETF | 27.18 | 95.13 |
| Invesco India Gold ETF | 26.20 | 93.53 |
As of 2025, gold remains one of India's most secure and trusted investment options, particularly in uncertain economic climates. Experts predict that global inflation concerns, geopolitical instability, and the rupee’s volatility will increase demand for gold as a safe-haven asset.
Nikkei Asia and other financial analysts have forecasted that gold prices could rise by 10-15% in 2025, providing investors with lucrative returns, especially after slowing economic growth in key economies.
Gold Exchange-Traded Funds (ETFs) function similarly to mutual funds but exclusively track the price of gold. When you invest in a Gold ETF in India, your funds are pooled with those of other investors and used to purchase gold bullion, which the ETF's custodian securely stores.
The value of your investment fluctuates in sync with the gold market price, allowing you to benefit from price movements without physically owning gold.
Gold ETFs are traded on stock exchanges just like shares, offering high liquidity and flexibility. Investors can buy or sell units during market hours, making them a cost-effective and convenient way to diversify into gold without the hassle of storage or safety concerns.
Case Study: SBI Gold ETF during 2020 Market Volatility In 2020, when global stock markets faced extreme volatility due to the COVID-19 pandemic, gold prices surged, reaching new heights. Investors flocked to Gold ETFs, which reflected the gold price surge accurately, making them an ideal hedge against stock market losses.
Investing in Best Gold ETFs can be an intelligent decision, but it's essential to consider a few factors before diving in:
Investing in Gold ETFs is straightforward and hassle-free. Follow these simple steps:
Here's a table highlighting the differences between Gold ETFs and physical gold:
| Aspect | Gold ETF | Physical Gold |
|---|---|---|
| Ownership | Represents ownership of gold in electronic form. | Ownership of physical gold in the form of bars or coins. |
| Storage | Gold is stored securely by the fund's custodian. | Requires safe storage at home or in a bank vault, incurring storage costs. |
| Liquidity | Easily tradable on stock exchanges, providing liquidity. | Selling physical gold may take time and involve additional costs. |
| Cost | Generally lower expenses compared to physical gold. | Involves additional costs such as making charges, storage fees, and insurance. |
| Tax Treatment | Taxed as capital assets, subject to capital gains tax. | Tax implications vary based on the holding period and jurisdiction. |
| Transparency | Transparent pricing and holdings information are available. | The value may be subject to appraisal and verification. |
| Risk Management | Acts as a hedge against inflation and currency devaluation. | Provides tangible asset protection but may be susceptible to theft or loss. |
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Gold ETFs provide a seamless and cost-efficient way for investors to gain exposure to gold while avoiding the challenges of physical ownership. They combine the benefits of liquidity, transparency, and diversification, making them an ideal choice for modern investors. Investors can make informed decisions that align with their financial goals by carefully analyzing top-performing Gold ETFs in India and considering factors such as returns, expense ratios, and fund management.
Yes, intraday trading is possible with gold ETFs. Investors can buy and sell these ETFs on the stock exchange throughout the trading day, just like stocks.
The best gold ETFs in India for 2025 include Birla Sun Life Gold ETF, Axis Gold ETF, HDFC Gold ETF, Nippon India ETF Gold BeES and Kotak Gold ETF. These options are popular for their performance, liquidity, and trustworthiness, making them great choices for gold investment.
The top 5 best Gold ETFs in India, based on 1-year returns, are UTI Gold Exchange Traded Fund, SBI-ETF Gold, Aditya Birla Sun Life Gold ETF, HDFC Gold Exchange Traded Fund, and IDBI Gold ETF. These ETFs provide strong returns, efficient management, and an easy way to invest in gold without the need for physical storage.
When selecting an ETF for investment, the investor should consider factors like the fund's expense ratio, tracking error, liquidity, underlying assets, and historical performance. Additionally, investors should assess the fund's management team, investment strategy, and risk profile to ensure alignment with their investment objectives and risk tolerance.
Place a sell order through your trading platform on the stock exchange to sell gold ETFs in India. The sale proceeds will be credited to your account based on the current market price of gold.
You are subject to capital gains tax when you sell your Gold ETF units at a profit. If you hold the units for less than three years, the gains are considered short-term and taxed according to your income tax slab rate. To know more, check the in-depth information on the Tax Implications of ETF Investments
To save tax on Gold ETFs, hold them for at least 12 months to qualify for Long-Term Capital Gains (LTCG), which is taxed at 12.5% without indexation. If sold before 12 months, gains are taxed as Short-Term Capital Gains (STCG) at 20% tax rates.
Disclaimer: This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations.
