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 2024, 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 |
|---|---|---|
| Birla Sun Life Gold ETF | 956.20 Cr | 96.57% |
| HDFC Gold ETF | 5775.85 Cr | 95.96% |
| Kotak Gold ETF | 5042.07 Cr | 95.39% |
| Axis Gold ETF | 1196.59 Cr | 94.60% |
| Nippon India ETF Gold BeES | 15147.25 Cr | 94.49% |
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 ETFs are investment funds traded on stock exchanges and backed by physical gold bullion. In India they are regulated by the Securities and Exchange Board of India (SEBI) and offered by various mutual fund companies. These ETFs aim to track the performance of gold prices and provide investors with returns that closely mirror the movements in the price of gold.
One of the key advantages of Gold ETFs is their ability to offer investors exposure to gold without the need for physical storage or security concerns. Investors can buy and sell ETF units on the stock exchange, just like they would with stocks, making them highly liquid and convenient investment instruments.
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 (%) |
|---|---|---|
| 24.77 | 52.89 | 96.57 |
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 (%) |
|---|---|---|
| 25.48 | 55.59 | 95.67 |
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 (%) |
|---|---|---|
| 25.06 | 53.20 | 95.39 |
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 (%) |
|---|---|---|
| 23.99 | 54.67 | 94.60 |
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 (%) |
|---|---|---|
| 25.10 | 53.87 | 94.49 |
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 |
|---|---|---|
| LIC MF Gold ETF | 27.50 | 107.09 |
| ICICI Pru Gold ETF | 26.04 | 96.13 |
| SBI Gold ETF | 26.01 | 96.21 |
| UTI Gold ETF | 25.88 | 95.09 |
| Quantum Gold Fund ETF | 25.57 | 94.29 |
| HDFC Gold ETF | 25.48 | 95.69 |
| Nippon India ETF Gold BeES | 25.10 | 94.49 |
| Kotak Gold ETF | 25.06 | 95.39 |
| Aditya Birla SL Gold ETF | 24.77 | 96.57 |
| Invesco India Gold ETF | 24.06 | 100.04 |
| Axis Gold ETF | 23.99 | 94.60 |
As of 2024, 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 2024, providing investors with lucrative returns, especially after slowing economic growth in key economies.
Gold Exchange-Traded Funds (ETFs) operate like mutual funds, but instead of holding a mix of stocks or bonds, they track the price of gold. When you invest in a Gold ETF in india, your money is pooled together with other investors' funds, and the collective investment is used to purchase gold bullion.
The gold is then stored securely by the custodian on behalf of the ETF. The value of your investment is directly linked to the market price of gold. As the price of gold rises or falls, so does the value of your ETF shares.
Gold ETFs can be bought or sold on the stock exchange just like stocks, providing flexibility for investors. This makes them easy to trade and liquidate at any time, offering a cost-effective method for gaining exposure to gold without the need to own it physically.
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. |
| Accessibility | Purchased and sold through brokerage accounts. | Requires visiting a jeweller or bullion dealer for transactions. |
| 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:
| 15 Best Penny Stocks To Buy in India 2024 |
| Best Silver ETFs in India 2024 for Investment |
| 15 Best ETFs in India To Invest in 2024 |
ETFs offer investors a convenient and cost-effective way to diversify their portfolios and achieve their investment objectives. By carefully evaluating the top-performing gold ETFs in India and considering key factors such as performance, management, and liquidity, investors can make informed decisions to enhance their investment returns.
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 2024 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 1years return include top-performing funds that offer strong liquidity and management. Key options are:
1. UTI Gold Exchange Traded Fund
2. SBI-ETF Gold
3. Aditya BSL Gold ETF
4. HDFC Gold Exchange Traded Fund
5. IDBI Gold Exchange Traded Fund
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 your income tax slab 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.
