Investing in Gold: List of India's Top Gold ETFs
Gold has always been a popular investment choice in India, considered a safe-haven asset against economic uncertainties and inflation. However, instead of purchasing physical gold, investors are increasingly turning to Gold Exchange-Traded Funds (Gold ETFs) for ease, security, and liquidity. Gold ETFs are open-ended mutual fund schemes that invest in physical gold with each unit representing a fixed quantity of gold (usually 1 gram).
If you're looking to invest in gold through ETFs, here’s a detailed list of the top Gold ETFs in India along with their features, advantages, and how you can invest in them.
What is a Gold ETF?
A Gold ETF is a type of exchange-traded fund that tracks the domestic gold price and allows investors to buy units of gold without physically holding it. These ETFs are traded on stock exchanges just like shares, offering a transparent and cost-effective way to invest in gold.
Benefits of Investing in Gold ETFs:
✅ Safe & Secure – No risk of theft or impurity issues like physical gold.
✅ Easy Liquidity – Can be bought and sold on stock exchanges anytime.
✅ No Making Charges – Unlike gold jewelry, there are no extra charges.
✅ Tax Efficient – No GST or wealth tax applicable, unlike physical gold.
✅ Portfolio Diversification – Helps hedge against inflation and market volatility.
List of Top Gold ETFs in India (2024)
1. Nippon India ETF Gold BeES
- Ticker Symbol: GOLD BEES
- Inception Date: 2007
- Expense Ratio: ~0.39%
- AUM (Assets Under Management): ₹7,000+ crore
- Tracking Method: Physical Gold
- Description: One of the most liquid and oldest Gold ETFs in India, this fund closely tracks gold prices.
2. SBI Gold ETF
- Ticker Symbol: SBI GOLD
- Inception Date: 2009
- Expense Ratio: ~0.60%
- AUM: ₹1,500+ crore
- Tracking Method: Physical Gold
- Description: Managed by SBI Mutual Fund, this ETF allows easy gold investment without storage hassles.
3. ICICI Prudential Gold ETF
- Ticker Symbol: ICICI GOLD
- Inception Date: 2010
- Expense Ratio: ~0.50%
- AUM: ₹3,000+ crore
- Tracking Method: Physical Gold
- Description: Offers good liquidity and tracks the gold price with high accuracy.
4. HDFC Gold ETF
- Ticker Symbol: HDFC GOLD
- Inception Date: 2011
- Expense Ratio: ~0.65%
- AUM: ₹2,000+ crore
- Tracking Method: Physical Gold
- Description: Backed by HDFC Mutual Fund, this ETF has strong fund management and solid returns.
5. Kotak Gold ETF
- Ticker Symbol: KOTAK GOLD
- Inception Date: 2007
- Expense Ratio: ~0.50%
- AUM: ₹2,500+ crore
- Tracking Method: Physical Gold
- Description: Offers investors a reliable and cost-effective way to invest in gold.
6. Aditya Birla Sun Life Gold ETF
- Ticker Symbol: BIRLA GOLD
- Inception Date: 2011
- Expense Ratio: ~0.55%
- AUM: ₹900+ crore
- Tracking Method: Physical Gold
- Description: Good choice for investors looking for low-cost gold investment.
7. Axis Gold ETF
- Ticker Symbol: AXIS GOLD
- Inception Date: 2010
- Expense Ratio: ~0.50%
- AUM: ₹1,100+ crore
- Tracking Method: Physical Gold
- Description: A growing Gold ETF with efficient tracking and fund management.
How to Invest in Gold ETFs in India?
Investing in Gold ETFs is easy and can be done through:
1️⃣ Stock Market Platforms – Buy and sell Gold ETFs on the NSE and BSE through your trading account with brokers like Zerodha, Groww, Upstox, ICICI Direct, etc.
2️⃣ Mutual Fund Apps – Some asset management companies allow you to invest directly in Gold ETFs via their official platforms.
3️⃣ Demat Account Requirement – Since Gold ETFs trade on stock exchanges, you need a Demat and trading account to invest in them.
Gold ETF vs. Physical Gold vs. Sovereign Gold Bonds (SGBs)
| Feature | Gold ETF | Physical Gold | Sovereign Gold Bonds (SGBs) |
|---|---|---|---|
| Liquidity | High | Low (resale issues) | Moderate (5-year lock-in) |
| Storage Cost | No | Yes | No |
| Purity Issues | No | Yes | No |
| Tax Benefits | Yes (after 3 years) | No | Yes (no capital gains tax) |
| Interest Returns | No | No | Yes (2.5% per annum) |
| Making Charges | No | Yes | No |
📌 Conclusion: If you want a safe, liquid, and cost-effective way to invest in gold, Gold ETFs are a great option. However, for long-term investors looking for additional returns, Sovereign Gold Bonds (SGBs) can be more beneficial.
Final Thoughts: Should You Invest in Gold ETFs?
Gold ETFs are an excellent investment choice for individuals who:
✔ Want to diversify their portfolio with gold.
✔ Prefer a secure and easy-to-trade gold investment.
✔ Are looking for tax-efficient gold investments.
✔ Want to avoid issues like storage and making charges.
📢 Pro Tip: If you’re planning to invest in gold ETFs, compare expense ratios, liquidity, and tracking efficiency before making a decision. Nippon India ETF Gold BeES and SBI Gold ETF are among the most liquid choices in the Indian market.
FAQs on Gold ETFs in India
1. Can I convert Gold ETFs into physical gold?
No, unlike Sovereign Gold Bonds (SGBs), Gold ETFs cannot be converted into physical gold.
2. Are Gold ETFs taxed in India?
Yes, Gold ETFs are subject to capital gains tax. Long-term gains (held over 3 years) are taxed at 20% with indexation benefits, while short-term gains are taxed as per your income tax slab.
3. Is a Demat account required for Gold ETFs?
Yes, you need a Demat and trading account to buy and sell Gold ETFs in India.
4. Are Gold ETFs better than gold jewelry?
Yes, Gold ETFs are better because they have no making charges, storage costs, or purity issues and are easier to sell.
5. What is the best Gold ETF in India?
Nippon India ETF Gold BeES and SBI Gold ETF are among the most liquid and efficient Gold ETFs in India.
🔹 Gold ETFs provide a simple, cost-effective, and tax-efficient way to invest in gold without the hassle of storing physical gold. Whether you are a short-term trader or a long-term investor, Gold ETFs can be an ideal way to diversify your portfolio and hedge against market risks.