Gold ETFs in India to Invest

Gold ETFs give you exposure to gold through units traded on the stock exchange. Their value generally moves with domestic gold prices, although returns may differ slightly because of expenses and tracking error.

• Gold ETF units are held electronically in a Demat account.
• You can buy and sell the units through a trading account during market hours.
• You can compare Gold ETFs using AUM, returns, expense ratio, liquidity, and tracking accuracy.
• Listed Gold ETF units held for more than 12 months are generally treated as long-term capital assets.
• Applicable long-term capital gains are generally taxed at 12.5% without indexation under current tax rules.

A Gold ETF, or Gold Exchange Traded Fund, is a mutual fund scheme that invests primarily in physical gold or permitted gold-related instruments. Its units are listed and traded on the stock exchange.

Instead of buying and storing physical gold yourself, you buy units of the ETF. Their value generally moves with domestic gold prices, although fund expenses and tracking error can result in small differences.

For example, if domestic gold prices rise, the value of a Gold ETF will generally rise too, subject to its expenses and tracking performance. If gold prices fall, the ETF's value can also decline.

When retail investors sell their Gold ETF units on the stock exchange, they generally receive the sale proceeds in cash rather than physical gold.

Gold ETFs pool money from investors and invest primarily in gold and permitted gold-related instruments. Physical gold held by the scheme is kept with an appointed custodian.

The value of your ETF units changes according to the value of the scheme's underlying assets. However, Gold ETF returns may not exactly match gold price movements because of fund expenses and tracking error.

For example, if gold prices increase by a certain percentage, the ETF may deliver a slightly different return after accounting for its operating costs.

Since Gold ETFs are listed on the stock exchange, you can buy and sell their units during market hours at the available market price.

• Available in small units: You can invest through ETF units instead of buying a large quantity of physical gold at once.
• Exchange traded: Gold ETFs can be bought and sold during stock market hours. Liquidity can differ between ETFs depending on their trading volumes.
• No locker required: Gold ETF units are held electronically in your Demat account, so you do not need to arrange physical storage for the gold.
• Portfolio diversification: Gold may behave differently from some other asset classes. Adding gold exposure can therefore help diversify a portfolio, although Gold ETF prices can still rise or fall.

Investing in Gold ETFs involves a few basic steps:

1. Open a Demat account with a SEBI-registered broker if you do not already have one. The account holds your ETF units electronically.
2. Open a trading account linked to your Demat account so that you can place buy and sell orders.
3. Complete KYC verification by providing the required identity, address, and other details.
4. Search for Gold ETFs through your trading platform and check their available market prices.
5. Place a buy order for the number of units you want during market hours.
6. Monitor your holdings through your Demat account after the units are credited following settlement.

The table below compares some Gold ETFs based on their 5-year CAGR. AUM, or Assets Under Management, is used instead of market capitalisation because it represents the value of assets managed by the ETF.

Disclaimer: According to publicly available data checked as of 25 August 2026, the return figures above are based on performance data as of 31 July 2026, while the AUM figures are as of 30 June 2026. The figures may change over time and should be verified with the respective AMC or AMFI before investing. Past performance does not guarantee future returns. The securities quoted are for example purposes only and not a recommendation.

Also read: What is SEBI?

Nippon India ETF Gold BeES

Nippon India ETF Gold BeES was launched in 2007. It aims to provide returns that closely correspond to the domestic price of gold, subject to tracking error.

The ETF allows you to gain exposure to gold through exchange-traded units instead of holding the metal physically. Its official performance data as of 31 July 2026 showed a 1-year return of 43.24% and a 5-year CAGR of 22.74%.

SBI Gold ETF

SBI Gold ETF was launched in 2009. It provides exposure to gold through an exchange-traded mutual fund structure.

The scheme aims to track gold prices, subject to expenses and tracking differences. This allows you to invest in gold without directly storing physical gold.

Kotak Gold ETF

Kotak Gold ETF was launched in 2007. It aims to provide returns that closely correspond to domestic gold prices, subject to tracking error.

You can buy and sell its units through the stock exchange instead of purchasing and storing physical gold.

HDFC Gold Exchange Traded Fund

HDFC Gold ETF was launched in 2010. It provides exposure to gold through an exchange-traded mutual fund scheme.

The ETF aims to track the performance of gold, subject to expenses and tracking error.

UTI Gold Exchange Traded Fund

UTI Gold ETF was launched in 2007. It aims to track domestic gold prices and allows you to invest in gold through units traded on the stock exchange.

This provides an alternative to directly purchasing and storing physical gold.

The expense ratio is the annual operating cost charged to a mutual fund scheme. Since this cost is charged to the fund, it can affect the return you receive.

The table below compares the same Gold ETFs based on their expense ratios.

Disclaimer: According to publicly available data checked as of 25 August 2026, the AUM figures above are based on data as of 30 June 2026, while the performance figures are based on data as of 31 July 2026. Expense ratios and other fund data are subject to change and should be verified with the respective AMC or AMFI before investing. Past performance does not guarantee future returns. The securities quoted are for example purposes only and not a recommendation.

• Gold price fluctuations: Gold prices can change because of factors such as inflation, interest rates, economic conditions, currency movements, and geopolitical events. The value of a Gold ETF can therefore rise or fall.
• Tracking accuracy: Gold ETFs aim to follow domestic gold prices, but their returns may not match gold prices exactly. Differences can arise because of expenses and tracking error.
• Fund fees or expense ratio: The expense ratio represents the annual operating cost charged to the scheme. A higher expense ratio can reduce your return compared with an otherwise similar fund.
• Liquidity and trading volume: Liquidity affects how easily you can buy or sell ETF units. Trading volumes and the difference between buying and selling prices can vary between Gold ETFs.
• Fund credibility and past performance: You can review the fund house, historical returns, and how closely an ETF has tracked gold prices. However, past performance does not guarantee future returns.
   

1. Investing without a clear goal

   Understand why you want gold in your portfolio before investing. For example, your objective may be diversification rather than trying to benefit from short-term gold price movements.

2. Ignoring the expense ratio

   Do not compare Gold ETFs only by their past returns. The expense ratio also matters because these expenses are charged to the scheme and affect returns.

3. Over-allocating to gold

   Investing too much in one asset can reduce portfolio diversification. Your allocation to gold should depend on your investment goals, time horizon, and risk tolerance.

4. Confusing Gold ETFs with gold mutual funds

   Gold ETFs and gold mutual funds work differently. Gold ETFs are traded on the stock exchange and generally require a Demat and trading account.

   
   

   Gold mutual funds generally do not require a Demat account. Their transactions take place at the applicable NAV rather than at an exchange-traded market price.

5. Selling during every short-term dip

   Gold prices can move up or down over short periods. Buying or selling only because of a short-term movement may not match your original investment objective.

   
   
   

The tax treatment of Gold ETFs depends on how long you hold the listed units before selling them. For transfers on or after 23 July 2024, listed units use a 12-month holding-period threshold for deciding whether a capital asset is short-term or long-term.

1. Short-term capital gains (STCG)

   
   

   Holding period: 12 months or less

   
   

   If listed Gold ETF units are held for 12 months or less, they are generally treated as short-term capital assets. The gains are generally taxed at the income-tax rate applicable to you.
    

2. Long-term capital gains (LTCG)

   
   

   Holding period: More than 12 months

   
   

   Listed Gold ETF units held for more than 12 months are generally treated as long-term capital assets. For transfers on or after 23 July 2024, applicable long-term capital gains are generally taxed at 12.5% without indexation.
    

3. No TDS

   
   

   For resident investors selling Gold ETF units on the stock exchange, tax is generally not deducted at source simply because the units are sold. Tax treatment can differ depending on your residential status and individual circumstances.

4. Securities Transaction Tax (STT)

   
   

   Gold ETFs are not equity-oriented mutual funds. Therefore, the STT treatment applicable to equity-oriented mutual fund units does not generally apply to Gold ETFs.

Note: Tax rules may change. Check the latest tax provisions or consult a qualified tax professional if you need guidance for your circumstances.

Gold ETFs allow you to invest in gold without buying and storing the metal physically. You can hold the units electronically in your Demat account and buy or sell them through the stock exchange.

Before investing, compare factors such as AUM, expense ratio, liquidity, tracking accuracy, taxation, and historical performance. Since Gold ETF values can rise or fall with gold prices, your decision should depend on your investment goals, time horizon, and risk tolerance rather than past returns alone.