Best Gold ETFs in India 2025

Gold holds great significance in India. Not only is the yellow metal considered auspicious, but it is also a go-to investment option for many households. Previously, investing in gold involved physically purchasing and storing the precious metal. However, investing in gold has become considerably easier now due to the easy availability of gold exchange-traded funds (ETFs). In this blog, we will learn which is the best gold ETF and things to keep in mind before investing in one.

Best Gold ETFs in India

Before taking a look at the various gold ETFs, we must understand what an ETF is.

An exchange-traded fund, or ETF, is a basket of securities that includes stocks, bonds, and commodities and is traded on exchanges like stocks. The ETF tracks and benchmarks its performance against an underlying index or commodity.

A gold ETF is a fund that has holdings in gold bullion and gold futures. It is a passively managed fund and the objective of a gold ETF is to track the performance of physical gold. For example, if the price of gold increases by 1%, the value of the gold ETF will increase by 1% as well.

Gold ETFs can be bought and sold on the stock exchanges like any share.

Here are some of the best gold ETFs in India based on the 3-year annualised return (as of January 28, 2025).

The above data is as of January 28, 2025

Overview of the Best Gold ETFs in India in 2025

(Please note the below data is as of January 28, 2025)

Let’s take a closer look at the top gold ETFs in India.

LIC MF Gold ETF

• 3-year annualised returns – 18.12%
•  Net Asset Value (NAV) – Rs 7,383
•  Assets Under Management (AUM) – Rs 172.96 crore
•  52-week high – Rs 7,585
• Expense Ratio - 0.41%
• Inception date – November 17, 2011

UTI Gold ETF

•  3Y annualised returns – 17.69%
•  NAV – Rs 68.15
• AUM – Rs 1,473 crore
• 52-week high – Rs 68.95
• Expense Ratio – 0.50%
• Inception date - March 12, 2007

HDFC Gold ETF

• 3Y annualised returns – 17.54%
•   NAV – Rs 69.52
• AUM – Rs 6,529 crore
• 52-week high – Rs 71.09
• Expense Ratio – 0.59%
• Inception date – August 13, 2010

Invesco India Gold ETF

• 3Y annualised returns – 17.46%
• NAV – Rs 7,067
•  AUM – Rs 201 crore
• 52-week high – Rs 7,264
•  Expense Ratio – 0.55%
• Inception date – March 12, 2010

Kotak Gold ETF

• 3Y annualised returns – 17.24%
• NAV – Rs 67.97
• AUM – Rs 5,221 crore
• 52-week high – Rs 68.79
•  Expense Ratio – 0 55%
• Inception date – July 27, 2007

Axis Gold ETF

• 3Y annualised returns – 17.22%
• NAV – Rs 67.93
• AUM – Rs 1,184 crore
• 52-week high – Rs 70
• Expense Ratio – 0.56%
• Inception date – November 10, 2010

ICICI Prudential Gold ETF

• 3Y annualised returns – 17.20%
• NAV – Rs 69.68
• AUM – Rs 5,694 crore
• 52-week high – Rs 71.55
•  Expense Ratio – 0.50%
• Inception date – August 24, 2010

Birla Sun Life Gold ETF

• 3Y annualised returns – 17.13%
• NAV – Rs 71.41
• AUM – Rs 937 crore
• 52-week high – Rs 78
• Expense Ratio – 0.54%
•  Inception date – May 13, 2011

SBI ETF - Gold

• 3Y annualised returns – 17.02%
• NAV – Rs 69.55
•  AUM – Rs 5,970 crore
•  52-week high – Rs 71.05
• Expense Ratio – 0.73%
• Inception date – April 28, 2009

Nippon ETF Gold BeES

• 3Y annualised returns – 16.98%
•  NAV – Rs 67.55
• AUM – Rs 15,190 crore
• 52-week high – Rs 68.60
• Expense Ratio – 0.81%
• Inception date – March 8, 2007

Benefits of Investing in Gold ETFs

Now that we have taken a look at the best gold ETFs in India, let’s understand the benefits of investing in gold ETFs.

Ease of Investing

The primary benefit of gold ETF is the ease that it offers investors. Investors in gold ETFs can benefit from returns similar to that of physical gold. Gold ETFs are traded on the stock exchanges like any other share which makes the process of buying and selling the security streamlined and convenient.

Diversification

Investing in gold through a gold ETF is a viable solution to diversify your portfolio. Diversifying an investment portfolio across multiple asset classes reduces the overall risk. Gold is often considered a safe haven investment and is a popular hedge against inflation which makes it a valuable addition to diversify a portfolio.

Accessibility

Gold ETFs are more accessible compared to physical gold. Since an investor can purchase any number of units of a gold ETF, it removes the need for a lump sum amount. Gold ETFs have made investing in gold easy and accessible for all types of investors.

Tax Benefits

Although gains on a gold ETF attract capital gains tax, these instruments do not attract securities transaction tax (STT) or value-added tax (VAT). These tax benefits make it a more suitable option for investors who are looking to invest in an asset that generates identical returns to gold.

Eliminates Physical Storage

Since a gold ETF is traded digitally on the stock markets, it eliminates the need to physically purchase and store gold. This reduces the risks associated with physical storage and provides investors with a hassle-free investment experience.

Factors to Keep in Mind While Investing in Gold ETFs

While investing in gold ETFs in India, investors should keep the following points in mind:

• Compare the ETF’s past performance along with other factors such as the fund manager and expense ratio.
• Avoid over-concentrating your portfolio with gold. It is advisable to allocate a certain chunk of your capital to gold to diversify your portfolio.
• The price of gold fluctuates due to multiple macro- and micro-economic factors. An investor should consider these factors and study the price trends before making an investment decision.

Conclusion

Investing in the best gold ETFs is a great option for investors looking to diversify their portfolios. An ETF is an easy, streamlined, and convenient way to invest and generate returns that are identical to physical gold. However, before investing in a gold ETF, it is important to consider the various factors that impact the price of gold. Additionally, one should compare various ETFs before choosing one to invest in.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.