Best Gold ETF in India 2026 | Top 12 Funds for Investment

The moment I began my search for investment opportunities that extended beyond standard fixed deposits, I discovered that gold functions as a permanent safe investment for Indian investors.

The process of storing physical gold became problematic because it required people to pay locker fees and deal with security issues, while they needed to purchase gold through jewelry stores. My discovery of gold ETF investment transformed my understanding of gold ownership.

This article provides information about the top gold ETF that exists in India. According to my observations, most new investors fail to grasp the functions of these funds, which operate differently from physical gold and gold mutual funds.

I will present the information in its most straightforward form, which enables you to decide without needing further assistance.

What Are Gold ETFs?

I will explain the fundamental concepts first. A gold ETF fund is basically a fund that invests in physical gold. The system allows people to possess gold without the need to carry its physical form.

Buy gold ETFs in India through a system where investors buy units that show their ownership of physical gold at a rate of one gram per unit.

Investors can buy these units on stock exchanges, which include NSE and BSE, under the same conditions as regular stocks. The fund house keeps the physical gold in secure vaults while investors can access their gold ownership through their Demat accounts.

The pricing system for your ETF units uses actual gold prices as its reference point. Your ETF value will increase by approximately 5% when gold prices rise by 5%.

Why Invest in Gold ETFs in India?

I have discovered multiple persuasive reasons that make gold ETF investment better than traditional gold buying methods. The information I want to share with you comes from my personal experiences throughout the years.

Liquidity Advantages

ETFs provide instant selling capability during market hours, while physical gold requires buyers and price negotiations for its sale. I remember one time when I needed fast cash because I sold my ETF units through my trading app and completed the transaction within six minutes. You need to attempt that process with gold jewelry or coins.

No Storage Issues

This matter holds great importance. The absence of bank locker fees, together with missing security concerns and theft risks, creates a completely safe environment for this situation. Your gold sits safely in Demat form. My uncle used to pay ₹5,000 annually just for his bank locker. ETFs remove all costs associated with that expense.

Lower Costs vs Physical Gold

When you buy physical gold, you pay making charges (which typically range from 10 to 25 percent for jewelry) and GST and you pay extra charges that exceed the actual gold prices. With gold ETFs, you pay just a small expense ratio, which usually ranges between 0.5 percent and 1 percent for the entire year. The long-term financial savings achieve substantial value.

Transparency

You know exactly what you're paying. The NAV (Net Asset Value) is published daily, and it closely tracks actual gold prices. The complete expenses of the service, together with the actual gold weight used for the purification process, stand as the only costs. Everything is out in the open.

Top 12 Gold ETFs to Buy in India

Here's a comprehensive look at all major gold ETFs in India to help you make an informed choice:

Key Observations from the Data

The data from the complete table shows multiple repeating patterns to the observer. The 1-year returns across most ETFs are remarkably similar, between 74-77%, which makes sense since they all track the same underlying asset (physical gold). The AUM and liquidity metrics serve as the primary elements that differentiate this product from others.

The top five ETFs (Nippon, ICICI, SBI, HDFC, Kotak) control over ₹1.35 lakh crore in assets combined. The size of this asset measurement shows its significant magnitude. The concentration of assets demonstrates the specific areas where investors build their trust.

Aditya Birla Gold ETF achieved the highest 5-year returns at 208.89% from its ₹2,779 crore smaller AUM.

For beginners, I strongly recommend sticking with the top three: Nippon India ETF Gold BeES, ICICI Prudential Gold ETF, or SBI Gold ETF.

Top 5 Best Gold ETFs to Buy in India

The best gold exchange-traded funds to invest in at present were determined through my research and actual market data. I assessed the investment options by analyzing their Assets Under Management (AUM), their ability to handle trading activity, and their past track record of performance.

Nippon India ETF Gold BeES (GOLDBEES)

This is the undisputed king of gold ETFs in India. The Nippon India ETF Gold BeES, which launched in 2007, exists as one of the most reliable and oldest investment choices available in the market today.

• Current NAV: ₹125.04
• AUM: ₹54,306 crore (largest gold ETF in India!)
• Daily Trading Volume: Over 9.5 crore units (exceptional liquidity)
• 1-Year Returns: 74.71%
• 5-Year Returns: 204.01%
• 52-Week Range: ₹65.85 - ₹148.14

The high trading volume enables me to execute purchases and sales at their actual market prices without experiencing any price slippage. The market allows you to execute instant trades of lakhs during its operating hours. Many people confuse gold bees vs gold ETF, let me clarify: Gold BeES IS a gold ETF, just a brand name by Nippon India.

The 5-year returns of over 200% speak for themselves. This is why GOLDBEES remains my personal top choice.

ICICI Prudential Gold ETF

Impressive is the only one. ICICI's in-house mutual fund franchise is called upon to testify as to its fair and audacious marketing and service claims.

• Current NAV: ₹130.01
• AUM: ₹23,281 crore
• Daily Trading Volume: 1.67 crore units
• 1-Year Returns: 76.69%
• 5-Year Returns: 208.59% (highest among major ETFs!)
• 52-Week Range: ₹69.71 - ₹158

The 5-year return of 208.59%, which I observed, proved more impressive than GOLDBEES performance. The outstanding liquidity of this fund creates an excellent opportunity for investors who seek to increase their holdings in different fund management companies.

SBI Gold ETF

If you trust SBI's reputation (and who doesn't in India?), their gold ETF is rock solid. The SBI Gold Fund Direct Growth option gives you slightly better returns by cutting out distributor commissions.

• Current NAV: ₹129.12
• AUM: ₹22,663 crore
• Daily Trading Volume: 1.46 crore units
• 1-Year Returns: 75.48%
• 5-Year Returns: 206.04%
• 52-Week Range: ₹64.96 - ₹153.95

SBI's brand trust, together with its strong performance track record, creates an investment option that appeals to conservative investors. The fund's assets under management exceed ₹22,000 crore, which demonstrates the investment trust investors have in this fund.

HDFC Gold ETF

HDFC Bank and HDFC Securities customers who already maintain accounts with HDFC Bank and HDFC Securities will find HDFC's services to be valuable. The integrated system enables easier investment processes while providing competitive financial performance.

• Current NAV: ₹129.39
• AUM: ₹21,886 crore
• Daily Trading Volume: 99 lakh units
• 1-Year Returns: 76.06%
• 5-Year Returns: 206.25%
• 52-Week Range: ₹70.10 - ₹152.30

The slightly lower trading volume that exists at this level doesn't create problems because of the significant AUM capacity. The system provides users with proper liquidity, which meets their needs for common retail investment amounts.

Kotak Gold ETF

One significant improvement from the Kotak platform involves the provision of competitive returns while maintaining liquidity.

• Current NAV: ₹125.88
• AUM: ₹12,986 crore
• Daily Trading Volume: 52 lakh units
• 1-Year Returns: 74.98%
• 5-Year Returns: 205.46%
• 52-Week Range: ₹68.01 - ₹155

While the AUM is lower than the top four, it's still substantial at nearly ₹13,000 crore. The returns are consistent with other major players, making it a viable option.

Gold ETF vs Gold Mutual Fund vs Physical Gold

Most people ask me: What's the real difference? I will explain it effectively through a direct side-by-side comparison. The process of investing requires you to understand the differences between a gold etf vs gold mutual fund and a gold mutual fund.

Key Differences

The main difference between gold ETFs and gold mutual funds is how you buy and sell them. The ETFs operate like stocks, which customers can trade throughout the entire day, while mutual funds execute their transactions only one time each day when the market closes for NAV calculations.

The people of India view physical gold as a special emotional asset because they use it as a wedding and festival gift. I consider ETFs to be more useful than other investment options because I prefer to use them for my investment needs.

When to Choose Each

Select Gold Exchange Traded Funds:

You need Gold Exchange Traded Funds when you possess a Demat account and need to trade stocks in real-time while you understand stock market operations.

Select Gold Mutual Fund:

You need a Gold Mutual Fund when you lack a Demat account and want to invest through systematic investment plans while enjoying the straightforward process of mutual fund investing.

Select Physical Gold:

You require gold for personal use and wedding ceremonies, and traditional needs beyond investment purposes.

How to Invest in Gold ETFs in India

Now I will walk you through the same steps I followed to make my first gold ETF investment. It is simpler than what most people seem to think.

Step-by-Step Process

Step 1: Open a Demat Account

The situation requires someone to maintain a Demat account and a trading account for purchasing gold ETFs. I use Zerodha as my broker, while you have the option to select any broker in India, which includes Upstox and Angel One, ICICI Direct, HDFC Securities, and other brokers.

Step 2: Complete Your KYC

The standard requires all financial accounts in India to follow this particular procedure. Keep your PAN, Aadhaar, and bank details ready. The complete process has been moved to online platforms, which require a time of 15 to 30 minutes to complete.

Step 3: Fund Your Trading Account

Deposit funds from your bank account to your trading account. Some trading platforms offer instant IMPS transfers from the client's bank account.

Step 4: Search for the ETF

In your trading application, users can find the most suitable gold ETF to buy by searching with their ticker symbols. For example, Nippon India ETF Gold BeES trades under the symbol "GOLDBEES" on NSE.

Step 5: Place Your Order

You need to create a buy order that functions similarly to purchasing stocks. You have two options for placing your order: a market order, which purchases at the present price, or a limit order, which buys at your designated price.

Step 6: Monitor Your Investment

The Demat account shows all purchased units after they have been bought. The broker's app and website allow you to check their daily market value.

The entire procedure requires under 10 minutes to complete after your account has been established. The process requires no documents and no in-person visits because everything is conducted through online channels.

Returns and Performance of Gold ETFs

The ultimate goal of our discussion requires us to examine the returns from gold ETF returns. The current market data proves that all financial assets show exceptional performance.

Historical Returns Overview

Extremely good returns from gold ETFs over the last few years do have a basis.

1-Year Returns (2024-2025):

• Most major ETFs delivered between 74-77% returns
• Top performer: UTI Gold ETF at 77.00%
• Lowest among established funds: Nippon Gold BeES at 74.71%
• Average across top 10 ETFs: approximately 75.5%

Think about that for a moment, nearly 75% returns in just one year! The global gold prices experienced a price increase from approximately ₹60,000 per 10 grams to more than ₹1,40,000 throughout this time period.

5-Year Returns (2020-2025):

• Top performer: Aditya Birla Gold ETF at 208.89%
• ICICI Prudential Gold ETF: 208.59%
• HDFC Gold ETF: 206.25%
• SBI Gold ETF: 206.04%
• Axis Gold ETF: 206.65%
• Nippon Gold BeES: 204.01%

The 5-year returns reach an unbelievable level because they exceed 200 percent, which results in your investment showing a threefold increase.

The 5-year returns of Zerodha Gold ETF (135.54%) and Mirae Asset Gold ETF (163.19%) show lower performance compared to newer and smaller ETFs. The two ETFs show different performance because of their different launch dates and initial tracking methods, which they used to monitor performance.

Factors Affecting Returns

Many factors combine to determine the profits of this. What is Gold ETF India? Understanding those crucial factors, perhaps, will help you time your investments better:

International Gold Prices:

This is the biggest factor. International price movements affect Indian ETFs because gold is traded worldwide at US dollar rates. The recent rally occurred because of global economic uncertainty and geopolitical tensions, and central banks purchased assets.

Currency Exchange Rates:

The dollar value of gold makes rupee-dollar exchange rates important for determining gold prices. The Indian rupee has decreased in value from approximately ₹82 to ₹84-85 per dollar during the past year, which resulted in higher gold profits for Indian investors. The weaker rupee causes gold prices to increase in rupee value, which results in greater returns for you.

Here is a practical illustration: Your gold ETF returns would reach approximately 13% (10% + 3%) if international gold prices increase by 10% and the rupee drops 3% against the dollar. Gold tends to perform well during periods of high inflation when interest rates show a downward trend.

Global Economic Uncertainty:

Investors turn to gold as a secure investment during times of warfare, trade conflicts, and financial system breakdowns. Gold prices increased because of the recent Middle East tension, China-US trade conflicts, and banking problems in Western countries.

Tracking Error and Expense Ratio:

The majority of leading ETFs follow gold price movements closely, but a 0.5% annual difference in expense ratios creates compounded effects throughout time. When you pay a lower expense ratio, you keep more returns from your investments.

Demand-Supply Dynamics:

Central banks worldwide have increased their gold purchases, which now reach hundreds of tons every year. Domestic gold prices in India depend on two main factors: the country's gold imports and the demand during festival seasons.

Platforms such as Dhanarthi stock screener provide assistance for stock analysis through their tracking of factors that affect your entire portfolio.

52-Week Price Range Analysis

The 52-week high and low data reveal various interesting insights.

Nippon Gold BeES showed price movement between ₹65.85 and ₹148.14, which resulted in a 125% price swing.

Most ETFs currently trade at 15-20% discounts from their highest prices during the past 52 weeks.

The evidence indicates that the market will experience either a correction or a consolidation phase.

Your training material includes data that extends until the month of October in the year 2023. The market experience shows that investors who maintain their investments for five or more years will find that short-term market fluctuations do not impact their results. The 5-year returns of 200%+ prove that staying invested through ups and downs pays off.

Factors to Consider Before Investing in Gold ETFs

Before you invest in the best gold ETF to buy in India, here are some critical factors I always check. These factors will determine whether your investment experience succeeds or fails.

Expense Ratio

The fund imposes an annual fee, which functions as the fundraising cost for its operations. A lower value presents itself as the preferable option. The difference between 0.2 and 0.3 percent appears insignificant, but it develops into a considerable impact after a 10 to 15-year period.

Tracking Error

The fund imposes an annual fee, which functions as the fundraising cost for its operations. A lower value presents itself as the preferable option. The difference between 0.2 and 0.3 percent appears insignificant, but it develops into a considerable impact after a 10 to 15-year period.

The expense ratio of 0.5 percent results in ₹5,000 costs when applied to a ₹1 lakh investment over 10 years, which increases to approximately ₹10,000 for a 1 percent expense ratio. The cost of 1 percent leads to double the expenses of 0.5 percent.

Liquidity (Trading Volume)

The average daily trading volume needs to be checked. The market provides better liquidity when traders can execute their trades without causing any price changes.

Most investors prefer Nippon India ETF Gold BeES because it offers excellent liquidity. The market provides better liquidity when traders can execute their trades without causing any price changes.

Fund Size (AUM)

Larger funds (higher AUM) are generally more stable and liquid. I personally prefer ETFs with at least ₹500 crore in AUM.

Small funds face difficulties in maintaining liquidity, which can lead to their merger or closure when they fail to attract sufficient investors.

Tax Implications (LTCG/STCG)

The tax structure for gold exchange-traded funds (ETFs) includes two capital gains tax categories.

Short-Term Capital Gains (STCG): Short-Term Capital Gains (STCG) apply when you sell your asset within 3 years because your gains will increase your taxable income, which will then be taxed based on your income tax slab. Your tax obligation will equal 30% of your profits if you belong to the 30% tax bracket.

Long-Term Capital Gains (LTCG): Long-Term Capital Gains (LTCG) taxation requires you to pay 20% tax after holding your asset for 3 years because indexation benefits allow you to reduce your taxable gains. Indexation benefits enable you to adjust your purchase price based on inflation, which results in lower taxable gains.

Investors can use indexation benefits to decrease their tax expenses, which apply to their long-term investments. The 3-year period serves as my minimum holding period for gold ETF investment because I need to maintain my investment.

The Dhanarthi financial analysis tools enable investors to assess tax effects, which they can use to evaluate their entire investment portfolio.

Advantages and Risks of Gold ETF Investment

Giving a fair review is the least that could be done regarding everything they mean for investing in gold and ETFs. As far as I am concerned, showing both sides allows you to decide well.

Advantages

Portfolio Diversification: Gold prices exhibit different movement patterns when compared to stock and bond markets. Gold prices create a protective effect for your portfolio when equity markets experience crashes.

Inflation Hedge: Through extended time frames, gold has preserved its ability to maintain purchasing power throughout periods of high inflation. Your money maintains its worth at a slower rate than before.

High Purity Assurance: ETFs provide a guarantee of 99.5% gold purity, which surpasses the gold purity standards that physical gold products use because gold purity in physical gold products can be doubted. The system provides complete assurance against both hallmarking and adulteration.

Easy Portfolio Rebalancing: You can complete the process of selling part of your assets in just two seconds. The process of selling 10 grams from a 100-gram gold bar becomes difficult when dealing with actual gold bars.

No Making Charges: First, you save 10-25% at the inception in comparison to jewelry made of gold. This is a significant advantage provided by silver.

Fractional Ownership: No massive amount is required for investment. Just begin with one unit (counting about 1 gram, around ₹5,000-6,000).

Risks and Challenges

The present situation needs assessment because all investments carry inherent dangers that apply to gold exchange-traded funds (ETFs) as well.

Price Volatility: Gold prices experience extreme price fluctuations because of their market behavior. I observed a price decrease that reached 10-15% during multiple months. If you panic and sell during downturns, you'll lock in losses. Understanding bullish and bearish market conditions can help you navigate volatility better.

No Regular Income: Gold ETFs generate no revenue because they operate unlike dividend stocks and interest-bearing bonds. Investors achieve returns through price increases, which drive their investments.

Currency Risk: Your returns from gold investments depend on currency strength because gold prices exist in US dollars. A strong rupee can actually reduce your gains in rupee terms, even if gold prices rise globally.

Requires Demat Account: Demat accounts serve as an essential requirement for stock market operations. People who lack a Demat account or who prefer not to use one should choose gold mutual funds as their better option.

Market Hours Limitation: The stock market permits trading only during its operational hours, which run from 9:15 AM to 3:30 PM on weekdays. The market does not permit trading during weekends or after the market closes.

Tracking Error Risk: The tracking error risk exists because operational issues and management decisions can lead to an ETF tracking gold prices with imperfect accuracy. Investors must comprehend all risks present in their investments to make appropriate investment decisions.

The Dhanarthi platform provides the best stock screener to analyze multiple investment options according to your financial objectives, while you build a diversified portfolio that includes gold ETFs and other asset categories.

Conclusion

The process of selecting the best gold ETF in India remains straightforward. The three options of Nippon India ETF Gold BeES, SBI Gold ETF, and ICICI Prudential Gold ETF provide investors with excellent performance, minimal costs, and high asset availability.

The key to successful investing lies in defining your financial objectives. Are you looking to create a diversified investment portfolio? Do you need protection against rising prices? Or do you want a simple method to invest in gold without needing to store it? The process of choosing the appropriate exchange-traded fund becomes simpler when you understand your purpose.

The process of making investment choices needs both time and research. Your future self will thank you for making informed decisions today.

Disclaimer: This article is for educational purposes only and should not be considered as financial or tax advice. Tax laws are subject to change, and individual circumstances vary. Please consult with a qualified chartered accountant or tax advisor for personalized guidance based on your specific situation.

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