Best Gold ETFs in India

The table below shows the Best Gold ETFs in India based on the Highest Market Capitalization and 1-year return.

Introduction To Best Gold ETF In India

Nippon India ETF Gold BeES

The Market Cap of Nippon India ETF Gold BeES is ₹5,168.88 crore. The stock’s 1-month return is 5.97%, while its 1-year return is 27.23%. It is currently 2.7% away from its 52-week high.

Nippon India ETF Gold BeES is an open-ended gold ETF listed on exchanges, aiming to mirror the domestic gold price through physical gold investment. Launched on March 8, 2007, it provides investors with easy gold exposure without physical storage hassles.

Managed by Vikram Dhawan since February 2022, Nippon India ETF Gold BeES tracks the price of gold closely, with returns showing a CAGR of 11.20% since its inception. The fund’s performance reflects gold price movements, offering a convenient investment option for gold enthusiasts.

SBI Gold ETF

The Market Cap of SBI Gold ETF is ₹2,644.09 crore. The stock’s 1-month return is 5.78%, while its 1-year return is 26.43%. It is currently 1.04% away from its 52-week high.

SBI Gold ETF is an open-ended Gold exchange-traded fund that aims to closely track the price of gold. Launched on May 18, 2009, it invests in physical gold and offers a convenient trading option through the National Stock Exchange.

Managed by Ms. Vandna Soni since January 2024, SBI Gold ETF provides a low-cost alternative to physical gold with high liquidity. It is ideal for investors seeking gold exposure without the complexities of physical storage, reflecting gold prices closely in its unit value.

Kotak Gold ETF

The Market Cap of Kotak Gold ETF is ₹1,984.14 crore. The stock’s 1-month return is 5.72%, while its 1-year return is 27.33%. It is currently 0.83% away from its 52-week high.

Kotak Gold ETF is an open-ended gold Exchange-Traded Fund that closely tracks the domestic spot price of gold by investing in physical gold. Each unit represents approximately 1/115th of a gram of gold, ensuring accurate price tracking.

Listed on stock exchanges, Kotak Gold ETF offers liquidity and ease of trading in demat form. The physical gold held by Deutsche Bank adheres to the London Bullion Market Association’s (LBMA) Good Delivery standards, ensuring high-quality gold to back the investment.

HDFC Gold Exchange Traded Fund

The Market Cap of HDFC Gold Exchange Traded Fund is ₹1,906.09 crore. The stock’s 1-month return is 5.84%, while its 1-year return is 26.9%. It is currently 2.26% away from its 52-week high.

HDFC Gold Exchange Traded Fund (ETF) is an open-ended scheme designed to replicate gold’s performance, providing a cost-effective, digital investment option. Launched on August 13, 2010, it offers a convenient way to invest in gold without physical storage.

Managed by Bhagyesh Kagalkar since February 2022, the HDFC Gold ETF tracks gold prices with a high level of precision. It offers investors portfolio diversification, a hedge against currency fluctuations, and a safe haven during market stress, with transparent pricing on NSE/BSE.

ICICI Prudential Gold ETF

The Market Cap of ICICI Prudential Gold ETF is ₹1,905.05 crore. The stock’s 1-month return is 5.97%, while its 1-year return is 27.39%. It is currently 1.11% away from its 52-week high.

ICICI Prudential Asset Management Company, part of the ICICI Bank Group, offers a range of mutual fund schemes, including the ICICI Prudential Gold ETF. The ETF replicates domestic gold prices and provides investors with a safe, convenient alternative to physical gold.

With over a decade of experience, the ICICI Prudential Gold ETF allows investors to invest in gold-related securities without the hassle of storage or theft concerns. The fund tracks real-time gold prices, offering flexibility and transparency while enabling wealth creation over time.

UTI Gold Exchange Traded Fund

The Market Cap of UTI Gold Exchange Traded Fund is ₹651.54 crore. The stock’s 1-month return is 5.58%, while its 1-year return is 27.02%. It is currently 0.64% away from its 52-week high.

UTI Gold Exchange Traded Fund is an open-ended ETF offered by UTI Mutual Fund, designed to track the domestic price of gold. It invests in high-purity gold bullion and follows a passive investment approach to meet its objectives.

The fund provides investors with a secure platform to invest in gold, aiming to closely replicate gold’s performance in the market. UTI Mutual Fund offers a wide range of financial products, with this ETF serving as an efficient way to gain exposure to gold investments.

Aditya BSL Gold ETF

The Market Cap of Aditya BSL Gold ETF is ₹353.23 crore. The stock’s 1-month return is 6.34%, while its 1-year return is 28.64%. It is currently 1.99% away from its 52-week high.

Aditya Birla Sun Life AMC Limited is a prominent asset management company, providing a wide range of investment solutions, including mutual funds, ETFs, and wealth management services. The company focuses on helping investors achieve financial growth through innovative products.

As part of the Aditya Birla Group, AMC offers diverse investment opportunities across equity, debt, and hybrid funds. With a commitment to customer-centric solutions, it emphasises investor education and delivers efficient portfolio management, catering to various risk appetites and financial goals.

Axis Gold ETF

The Market Cap of Axis Gold ETF is ₹319.17 crore. The stock’s 1-month return is 5.6%, while its 1-year return is 27.73%. It is currently 0.66% away from its 52-week high.

Axis Gold ETF is an open-ended exchange-traded fund designed to track the domestic price of gold. Managed by experienced fund managers, it allows investors to gain exposure to gold without the complexities of physical storage or quality concerns.

The ETF provides transparent pricing based on international gold price movements and offers a cost-effective way to invest. It is suitable for investors seeking capital appreciation over the medium to long term, with investment options available in small quantities through stock exchanges.

Quantum Gold Fund

The Market Cap of Quantum Gold Fund is ₹130.03 crore. The stock’s 1-month return is 4.18%, while its 1-year return is 27.21%. It is currently 1.03% away from its 52-week high.

Quantum Gold Fund offers investors an efficient way to invest in physical gold without the associated hassles of storage or making charges. It allows for portfolio diversification by enabling gold investments in smaller denominations through an exchange-traded fund (ETF).

This ETF tracks the domestic price of gold and provides investors with the opportunity to gain exposure to the precious metal in a cost-effective manner. It is managed by an experienced team, ensuring secure storage and transparent pricing aligned with the market value of gold.

IDBI Gold Exchange Traded Fund

The Market Cap of IDBI Gold Exchange Traded Fund is ₹95.12 crore. The stock’s 1-month return is 2.06%, while its 1-year return is 27.81%. It is currently 2.24% away from its 52-week high. ​​

IDBI Gold Exchange Traded Fund allows investors to invest in physical gold without the complexities of handling or storing the metal. This fund mirrors the domestic price of gold, offering an easy and transparent way to diversify investments.

The fund is designed for those seeking exposure to gold’s performance through a secure and convenient platform. It aims to provide returns in line with the price movements of physical gold, offering a reliable option for portfolio diversification.

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What Is Gold ETF?

A Gold ETF (Exchange-Traded Fund) is a financial product that tracks the price of gold. It allows investors to gain exposure to gold prices without owning physical gold, as the ETF holds gold bullion or gold-related assets.

Gold ETFs are traded on stock exchanges like regular stocks, making them easy to buy and sell. They provide a cost-effective and liquid way to invest in gold, offering benefits such as low expense ratios and simplified management compared to physical gold investments.

Features Of Best Gold ETF In India

The main features of the best Gold ETFs in India include liquidity, low expense ratio, direct gold exposure, and ease of trading. These attributes ensure cost-effective investment and accessibility while tracking gold prices accurately.

• Liquidity: High liquidity allows easy buying and selling of Gold ETFs, ensuring investors can enter or exit positions without significant price impact.
• Low Expense Ratio: The best Gold ETFs have minimal management fees, which helps in maximizing returns by reducing the cost of investment over time.
• Direct Gold Exposure: Gold ETFs invest in physical gold, providing investors with returns that closely mirror the price of gold, offering a straightforward way to gain exposure to gold.
• Ease of Trading: Gold ETFs are traded on stock exchanges, making them accessible through regular trading accounts and simplifying the investment process compared to physical gold purchases.

List Of Gold ETF In India Based On 6 Month Return

The table below shows the Top Gold ETFs in India Based on 6 Month Return.

Best Gold ETF In India Based on 5 Daily Volume

The table below shows the Best Gold ETFs in India Based on Daily Volume.

Top Gold ETF In India Based on 1M Return

The table below shows the List of Best Gold ETFs in India Based on a 1-Month Return.

Historical Performance Of Gold ETF In India

The table below shows the Historical Performance of Gold ETFs in India based on the Highest Market Capitalization and 5-year return.

Factors To Consider When Investing In Gold ETF

The main factors to consider when investing in Gold ETFs include expense ratio, liquidity, tracking error, and investment horizon. Evaluating these aspects ensures that investors make informed decisions, minimizing costs and maximizing returns while aligning with their financial goals.

• Expense Ratio: A lower expense ratio is crucial as it directly impacts returns. Gold ETFs with higher fees may erode profits over time, so it’s essential to choose one with minimal costs to maximize investment efficiency and overall profitability.
• Liquidity: High liquidity ensures that Gold ETFs can be easily bought and sold at market prices without causing large price fluctuations. This allows investors to quickly enter or exit positions based on market conditions and financial needs.
• Tracking Error: Tracking error measures how closely a Gold ETF replicates the performance of gold prices. A lower tracking error indicates better alignment with the actual gold price, which is important for ensuring returns match the expected performance of physical gold.
• Investment Horizon: Considering the investment horizon is important. Short-term fluctuations may affect returns, while long-term investors benefit from gold’s tendency to hold value. Knowing your time frame can help you manage risks and align with your financial strategy.

How To Invest In Gold ETF?

To invest in Gold ETFs, start by selecting a reputable brokerage account with Alice Blue that offers access to the stock exchanges where Gold ETFs are listed. Ensure the broker provides an easy-to-use platform for buying and selling ETF units.

Once your account is set up, research and choose a Gold ETF that aligns with your investment goals. Place buy orders through your brokerage platform, specifying the number of units you wish to purchase. Monitor your investment regularly to track performance and adjust as needed.

Impact Of Market Trends On Gold ETF

Market trends, such as inflation or geopolitical instability, positively impact Gold ETFs, as gold is often viewed as a safe-haven asset. During such periods, demand for gold increases, driving up prices and enhancing the performance of Gold ETFs.

Conversely, during economic stability and rising interest rates, Gold ETFs may underperform as investors shift towards higher-yielding assets. In such environments, gold’s appeal diminishes, leading to lower demand and potentially reducing the value of Gold ETFs.

How Does Gold ETF In India Perform In Volatile Markets?

In volatile markets, Gold ETFs in India generally perform well as gold is considered a safe-haven asset. Investors tend to move towards gold during economic instability, driving up its price and consequently improving the performance of Gold ETFs.

Moreover, Gold ETFs offer a stable alternative to riskier investments like stocks, as gold prices often rise when other asset classes decline. This inverse relationship allows Gold ETFs to provide a cushion against market volatility, preserving portfolio value during uncertain times.

Advantages Of Gold ETF

The main advantages of Gold ETFs include affordability, security, transparency, and liquidity. These benefits make Gold ETFs an attractive investment option, providing a simple and efficient way to gain exposure to gold without the challenges of physical ownership.

• Affordability: Gold ETFs eliminate costs related to storing and insuring physical gold. Investors only pay a small management fee, making it a more cost-effective option than purchasing physical gold, which involves higher expenses like making charges and storage.
• Security: With Gold ETFs, there’s no risk of theft or loss as they are stored in electronic form. Investors hold gold indirectly, without the burden of protecting physical assets, ensuring a secure investment option.
• Transparency: Gold ETFs are closely regulated, providing daily price updates based on real-time gold market values. This transparency ensures that investors can track their holdings and know the exact value of their investment at any given time.
• Liquidity: Gold ETFs are highly liquid as they are traded on stock exchanges. This allows investors to buy and sell units easily during market hours, making Gold ETFs a convenient option for those seeking flexibility in their gold investments.

Gold ETF Disadvantages

The main disadvantages of Gold ETFs include tracking errors, lack of physical gold ownership, management fees, and market risks. These factors may reduce the appeal for some investors who prefer direct gold investments or are concerned about added costs and market fluctuations.

• Tracking Errors: Gold ETFs may not perfectly match gold prices due to tracking errors, which occur when the fund’s performance deviates from the actual gold price. This can result in slightly lower returns compared to directly holding physical gold.
• No Physical Ownership: Investors in Gold ETFs do not own physical gold. Some individuals prefer the security of owning tangible assets, which ETFs cannot provide, as they only offer indirect exposure through financial instruments.
• Management Fees: Although Gold ETFs are cost-effective compared to physical gold, they still come with management fees. These fees, while typically low, can erode returns over time, especially for long-term investors seeking maximum profit.
• Market Risks: Like other traded assets, Gold ETFs are subject to market risks such as volatility and liquidity issues. External factors like economic downturns or geopolitical tensions can impact the price of gold, potentially affecting the ETF’s performance.

Contribution Of Gold ETF To Portfolio Diversification

Gold ETFs contribute significantly to portfolio diversification by acting as a hedge against market volatility. Since gold often performs well during economic downturns, including it in a portfolio helps balance the risk from equities and other traditional investments.

Moreover, gold’s low correlation with other asset classes, such as stocks and bonds, enhances portfolio stability. By including Gold ETFs, investors can mitigate the impact of market fluctuations, ensuring more consistent returns over time, regardless of broader market conditions.

Who Should Invest In Best Gold ETF In India?

Investors looking for a cost-effective and convenient way to gain exposure to gold without the hassle of storing physical assets should consider investing in the best Gold ETFs in India. These ETFs suit those seeking portfolio diversification and inflation protection.

Additionally, risk-averse investors who prefer a safer investment during economic uncertainty may find Gold ETFs appealing. Since gold typically acts as a hedge against market volatility, it can provide stability to a portfolio, especially in times of financial downturns or inflation.

Impact Of Manager Expertise On Gold ETF Performance

Manager expertise significantly impacts the performance of a Gold ETF. Skilled managers can minimize tracking errors, ensuring the ETF closely mirrors gold prices. Their experience in managing asset allocation and rebalancing can help optimize returns while keeping operational costs low.

Additionally, expert managers are adept at navigating market conditions and adjusting the ETF’s holdings based on fluctuations in gold prices or economic trends. Their ability to respond to external factors like interest rates or inflation enhances the overall performance of the ETF, providing better returns for investors.

FAQs – Gold ETF In India

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.