Gold has always been special for Indian families in weddings, festivals, or long-term savings. Gold plays an important role. But today, you don’t have to buy heavy gold jewellery or worry about lockers. With Gold Exchange Traded Funds (ETFs), you can invest in gold in a smart and modern way, without any storage or safety issues.
Let’s take a look at the top 5 Gold ETFs in India as of May 2025, and understand how they work, what they cost, and what to keep in mind before investing.
What Is a Gold ETF?
A Gold ETF (Exchange Traded Fund) is a type of investment that allows you to buy gold in a digital format. It is just like buying shares in the stock market.
Each unit of a Gold ETF is equal to a small quantity of gold, usually 1 gram. Best ETF Gold Funds The value of your ETF moves with the price of gold. You can buy and sell these units on the stock exchange, just like any stock, using a demat and trading account.
Gold ETFs are popular because:
- They are easy to buy and sell.
- You don’t have to worry about storing gold at home.
- They offer transparent pricing and good liquidity.
Top Gold ETFs to Invest in India 2025
Want to invest in gold without purchasing physical jewellery or bars? Gold ETFs in India are an ideal option for investing in gold as part of your investment portfolio. Let us have a simple glance at the best performing Gold ETFs in 2025.
LIC MF Gold ETF
Best ETF Gold Funds This is among the most reliable Gold ETFs in India. It has returned 32.82% in 1 year, large cap funds making it among the highest performing funds. The cost of maintenance is low, at 0.41%, so you pay less to continue being invested. The fund has existed since November 2011, and its Assets Under Management stand at ₹403.8 crore. The NAV stands at ₹8,762.66, which indicates what the units of the fund are worth today.
HDFC Gold ETF
The second best performer, HDFC Gold ETF, has a 1-year return of 32.12%. It has a huge AUM of ₹9,845.03 crore, making it one of India’s largest Gold ETFs. View Telegram Channel. The expense ratio is 0.59%, and it was launched in August 2010. If you want a fund with size, trust, and robust returns, then this is a good choice.
Birla Sun Life Gold ETF
Best ETF Gold Funds has returned strongly at 32.01% over the last 1-year period. It has an AUM of ₹1,133.31 crore, a low expense ratio of 0.47%, and it came out in May 2011. It is suitable for those seeking balanced returns and costs.
UTI Gold ETF
UTI Gold ETF is an international fund of old vintage, starting from April 2007. It has provided a 1-year return of 32.00% with AUM of ₹1,967.98 crore. It has a low expense ratio of 0.48%. It is an economical scheme for long-term investors.
Invesco India Gold ETF
The 1-year return is 31.42%. AUM is ₹283.02 crore, and the expense ratio is 0.55%. The fund is dated March 2010, and it may be relatively small in size compared to a few others, but it gives consistent performance.
Nippon ETF Gold BeES
One of the largest and most popular Gold ETFs in India, this fund boasts an enormous AUM of ₹21,579.71 crore. It has returned 31.49% in 1 year. While the expense ratio is slightly higher at 0.80%, the long-standing history (since March 2007) and high liquidity of the fund make it a favorite among many investors.
ICICI Prudential Gold ETF
This ICICI Gold ETF enjoys a 1-year return of 31.01% and a healthy AUM of ₹7,849.81 crore. The expense ratio is just 0.50%, which is very affordable. It has been available since August 2010 and enjoys the support of a popular brand.
Groww Gold ETF
Best samll cap Funds Groww is one of the most recent entrants in the gold ETF market, entering in October 2024. So far, since launch, it has returned 22.89%. It has an AUM of ₹103.02 crore and an expense ratio of 0.51%. Since it’s new, it does not have a long history to speak of, but it is attracting investors who already have an account on Groww.
SBI ETF – Gold
SBI Gold ETF provides a return of 30.71% over 1 year. It has a huge AUM worth ₹8,009.8 crore, indicating good investor confidence. The expense ratio is a tad higher at 0.70%. Best ETF Gold Funds It is a good option still, particularly for those who like SBI as a brand. The fund has been in operation since April 2009.
Axis Gold ETF
This ETF has yielded a return of 28.37% in 1 year. It has AUM worth ₹1,709.6 crore and has an expense ratio of 0.54%. It has been in existence since November 2010. The return is slightly less than some others, but it still provides good value and consistent performance.
Advantages of Investing in Gold ETFs
Now that we have discussed the best Gold ETFs in India, let us discuss why investing in Gold ETFs is a good idea. Whether you are new to investing or have some experience already, Gold ETFs provide several benefits that make them an easy and secure option.
1. Easy to Invest
One of the largest advantages of Gold ETFs is that they are easy to invest in. You don’t have to go to a jewelry store or be concerned about holding gold physically. Similar to shares, Gold ETFs are listed on the stock market, and hence, you can easily sell or buy them through your demat account. You receive returns as well as physical gold.
2. Diversifies Your Portfolio
Gold is a safe bet to invest in, Best ETF Gold Funds particularly during times of uncertainty in markets. By incorporating Gold ETFs into your portfolio, you are diversifying your risk. This is diversification. When your other investments, such as stocks or bonds, do not do well, gold will counterbalance the losses. Best ETF Gold Funds It is also a good hedge against inflation.
3. Tax-Friendly
Gold ETFs have some tax advantages, too. Although the returns are subject to tax as capital gains, you do not have to pay additional fees such as value-added tax (VAT) or securities transaction tax (STT), which typically come with physical gold. This makes your investment tax-efficient.
4. No Storage Worries
As compared to physical gold, Best ETF Gold Funds which must be securely stored in a locker or at home, Gold ETFs are electronically held. This eliminates the possibility of theft or loss and also does not incur storage charges. It is a significantly more secure and convenient method of investing in gold.
5. Accessible and Affordable
Gold ETFs are great for small and big investors alike. You don’t need to spend a large amount of money to start investing. You can buy even a single unit, making it easy for anyone to get started. This makes Gold ETFs much more affordable than physical gold.
Things to Keep in Mind Before Investing in Gold ETFs
Although Gold ETFs are easy and useful, a few things to keep in mind before investing are:
Check Past Performance: Observe what the ETF has done in the past years. A consistent performance is a good indication.
Compare Expense Ratios: Best ETF Gold Funds Some funds cost you more than others. A lower expense ratio translates to saving more for you.
Learn about the Fund Manager: A good fund manager can help you make better investment choices, and it can also affect your returns.
Know Gold Price Trends: Gold prices may increase or decrease depending on the economic scenario. Study the market trends prior to investing.
Don’t Bet Everything on Gold: Although gold is a secure choice, investing too much in any one thing is not a great plan. Use Gold ETFs as a portfolio balancer, not an entire strategy builder.
Conclusion
Best ETF Gold Funds are an intelligent and easy method of investment in gold in 2025. Gold ETFs provide security, liquidity, low costs, and stable returns that are extremely close to physical gold. For portfolio diversification and risk minimization, Gold ETFs may be the best option.
But always spare time to compare various ETFs, research the gold market, and invest as per your investment goal. Best ETF Gold Funds Gold ETFs can be a worthwhile investment in your journey with the proper strategy.
