Gold Exchange Traded Funds (ETFs) have gained significant popularity among Indian investors seeking a secure and liquid investment option due to their backing by physical gold and ease of trading on stock exchanges. In this article, we present some of the Best Gold ETFs in India, analyzing their past performance, expense ratios, and other essential factors to help you make an informed decision.
Now, we'll explore the top-performing Gold ETFs in India to help you identify options that can offer stable returns and protection against inflation, given gold's historical value retention and its inverse relationship with market volatility. That can offer you stable returns and protection against inflation.
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.
| Best Gold ETFs in India | Market Cap | 5 Yr Return |
|---|---|---|
| 1. Birla Sun Life Gold ETF | 1094.70 Cr | 112.41% |
| 2. HDFC Gold ETF | 8071.51 Cr | 112.38% |
| 3. Kotak Gold ETF | 6173.63 Cr | 111.89% |
| 4. Axis Gold ETF | 1506.89 Cr | 111.73% |
| 5. Nippon India ETF Gold BeES | 19555.96 Cr | 109.79% |
These 5 Best 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 investment instruments designed to track the price movements of physical gold. Traded on stock exchanges like regular stocks, each unit of a Gold ETF represents a specific quantity of high-purity gold (typically 99.5% or higher). These ETFs are backed by actual gold held securely by a custodian, ensuring transparency and credibility.
Regulated by the Securities and Exchange Board of India (SEBI), Gold ETFs in India are offered by leading mutual fund companies, providing investors with a secure and efficient way to gain exposure to gold without the challenges of storing or securing physical bullion. Unlike traditional gold investments such as jewelry or bars, Gold ETFs eliminate concerns about purity, making charges, and storage risks.
Gold ETFs serve as a reliable hedge against inflation and market volatility, making them a preferred choice for investors seeking stability. Below, we highlight the top-performing Gold ETFs in India based on their historical returns, expense ratios, and liquidity to help you make an informed investment decision.
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 (%) |
|---|---|---|
| 32.79 | 63.04 | 112.41 |
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 (%) |
|---|---|---|
| 32.96 | 63.47 | 112.38 |
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 (%) |
|---|---|---|
| 32.77 | 63.1 | 111.89 |
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 (%) |
|---|---|---|
| 31.21 | 63.46 | 111.73 |
GOLDBEES is the first gold ETF in India, and it is offered by Nippon India Mutual Fund (formerly Reliance Mutual Fund). As India's 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 (%) |
|---|---|---|
| 32.59 | 62.45 | 109.79 |
Investors need a Demat account with a registered stockbroker to invest in Best Gold ETFs. Get your FREE Demat account from Lakshmishree Investments today.
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 |
|---|---|---|
| 1. ICICI Pru Gold ETF | 32.88 | 111.03 |
| 2. Kotak Gold ETF | 32.77 | 111.89 |
| 3. HDFC Gold ETF | 32.96 | 112.38 |
| 4. Aditya Birla SL Gold ETF | 32.79 | 112.41 |
| 5. Invesco India Gold ETF | 32.64 | 113.31 |
| 6. Quantum Gold Fund ETF | 32.59 | 110.22 |
| 7. Nippon India ETF Gold BeES | 32.59 | 109.79 |
| 8. UTI Gold ETF | 32.54 | 111.97 |
| 9. LIC MF Gold ETF | 31.58 | 114.42 |
| 10. Axis Gold ETF | 31.21 | 111.73 |
Investing in Gold ETFs offers several advantages over traditional gold investments. Here’s why they are an appealing option for many investors:
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.
Key Trends Impacting Gold ETF Investments in 2025:
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.
Both Gold ETFs and Gold BeES aim to track the price of gold, but there are a few differences to consider. Gold ETFs are a broad category of exchange-traded funds backed by physical gold, while Gold BeES is a specific Gold ETF launched by Nippon India Mutual Fund and is notable for being one of the first Gold ETFs introduced in India. Known for its strong liquidity and established track record, Gold BeES has slightly higher expense ratios than other Gold ETFs.
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. |
Also Check:
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.
The best gold ETFs in India for 2025 include Birla Sun Life Gold ETF, HDFC Gold ETF, Kotak Gold ETF, Axis Gold ETF and Nippon India ETF Gold BeES. 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.
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.
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.
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.
