Gold ETFs in India to Invest in 2024

Indians love gifting and receiving gold during weddings, child birth, anniversaries, and special occasions. This glittering yellow metal has forever been a preferred buy and the safest and easiest way to invest, especially for traditional investors. While gold remains a lucrative investment product, the way it is used as an investment has evolved.

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Gold exchange-traded funds (ETFs) are a new and innovative avenue for investing in gold. A gold ETF is a type of mutual fund which holds gold assets, such as gold bullions or futures contracts, while it is traded on a stock exchange.

Simply put, gold ETFs represent physical gold in electronic and paper format. Instead of buying physical gold, investors buy shares in these funds. When these shares are traded, investors get the cash value of each share, offering the appeal of gold with the ease of stock trading.

Gold ETFs offer a lot of advantages. Unlike physical gold, you don’t need bank lockers for safekeeping. As these are digital investments, someone stealing them is not an option. Also, they are cheaper than gold jewellery, where you pay GST, making charges, etc. Another major advantage of buying gold ETFs in India is that you enjoy higher liquidity. Buying and selling physical gold can often be tedious and cumbersome. However, ETFs provide ease of investment, storage, and liquidity.

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Listed below are some of the popular gold ETFs in India in 2024 on the basis of their CAGR.

Note: The Gold ETFs listed here, as of January 9, 2024, are selected based on their 5-year CAGR.

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Let us look at some of the popular gold ETFs in India in 2024. These are based on the expense ratio.

Note: The Gold ETFs listed here, as of January 9, 2024, are chosen based on their expense ratios.

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For most Indians, buying gold is a luxury, a status symbol, and an assurance for the future. Investing in one of the popular gold ETFs in India in 2024 can boost your investment portfolio. However, before investing in gold ETFs, you need to consider several factors, such as the risk factor, fund management fee, taxation, and asset allocation. Keep in mind that you need to open a Demat account to invest in ETFs, and you must choose a trusted broker.