Best Gold ETFs to Buy in India in 2023 - Upstox (2023)


In the world of investing, Gold exchange-traded funds (ETFs) offer an accessible and transparent way to own gold. Backed by high-purity gold, they bypass the complexities of physical gold ownership. These ETFs reflect gold prices and can be traded on stock exchanges. Gold ETFs offer advantages such as price transparency, ease of trading, and tax benefits. Before investing in Gold ETFs, you should carefully consider factors like investment duration, trading size, fund performance, demat account ownership, and tax guidelines.

A gold ETF serves as a viable alternative to owning physical gold. It is a type of commodity exchange-traded fund, with its sole underlying asset being gold. ETFs are comparable to individual stocks. They operate and trade on the stock exchange. Each unit of a gold ETF represents one gram of gold. And if your foremost concern when investing in gold is ensuring its purity, you can set aside your worries. Each unit of gold ETFs is backed by gold bullions of 99% purity or above. These gold ETFs in India are traded on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

In this guide, we'll delve into the realm of the best gold ETFs in India, allowing you to curate your golden investments.

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Navigating the Indian gold ETF landscape

Investing in physical gold can be complicated and risky. This is where gold ETFs come in. They offer you a way to invest in gold, without the need to possess any physical gold. Here’s how it works. Think of a gold ETF as a stamp collection that's filled with valuable pre-Independence stamps. As the value of the overall stamp collection rises, each individual stamp also grows in value. This stamp collection is like a special mutual fund. It is designed to hold multiple stamps. Similarly, the significance of your share within the gold EFT gets amplified as the fund’s value rises.

But as you step into the realm of gold ETF investments, a few factors should remain at the forefront of your decision-making process. For instance, pay attention to your:

  • Duration of investment: Given that gold often yields low annual long-term returns, it is better suited to short to medium-duration investments. Investors can expect an annual return of at least 9-10% when investing in the precious metal for a period spanning 9-10 years. Its historical performance suggests that it might not provide the substantial growth potential of riskier assets but can offer stability within certain investment horizons. This makes it an attractive choice for those seeking relatively steady returns within a specific timeframe.
  • Size and frequency of trading: Gold ETFs can be a wise choice if you're planning to invest a substantial amount of money or if you're looking to engage in frequent trading. Why is that? As discussed above, they are suited to short or medium-term investments. Additionally, they are easy to trade in the stock exchange making them a convenient option for those engaging in frequent trading activities. Investors also have the option of purchasing gold ETFs in increments of one unit, providing greater affordability compared to jewellery or coins and bars that demand larger expenditures. Financial experts, however, recommend allocating only 5-10% of your portfolio to gold ETFs. This strategy helps maintain a stable investment foundation and ensures consistent returns.
  • Demat account: When you buy physical gold, you need to think about storage – and that often comes with added costs if you're considering using a locker. Plus, buying physical gold usually involves various charges and costs. Gold ETFs sidestep these issues. They offer a cost-effective way to invest in and own gold. Since the gold is held in dematerialized (Demat) form, you don't need to worry about security either. You can also consider a systematic investment plan (SIP) to gradually build your exposure to gold. For those who don't have a Demat account, initiating a SIP is a viable option.
  • Fund performance: Gold ETFs offer a significant advantage in terms of price transparency. Their units are listed on exchanges and reflect the real-time fluctuations in gold prices. This transparency allows investors to align their purchases with prevailing prices, unlike jewellery and bullion. Similarly, selling can be equally advantageous, as it enables investors to make the most of live gold prices for a favourable outcome. So, when considering a gold ETF, don’t rely solely on its pricing as your deciding factor. Instead, take a closer look at the fund's performance over recent years to gain insights into its current trajectory.
  • Taxation benefits: Did you know that only gold ETF units held for over three years are tax-eligible as long-term capital gain? Moreover, it is subject to a 20% tax rate with an indexation benefit – a mechanism usedto adjust the purchase price of an investment to reflect the effect of inflation on it. For holding periods of less than three years, short-term capital gain tax applies, based on one's tax slab. This provides investors with the added advantage of enjoying tax benefits.

Exploring the finest gold ETFs in India: An overview

Considering the criteria outlined earlier, here's a selection of gold ETFs in India that you might consider for investment purposes. It's important to note that this list is for guidance only. Prior to making any investment decisions, we recommend conducting further research and seeking expert opinions to ensure informed choices for your investments.

  • HDFC Gold ETF: Designed to closely mirror the performance of gold, with considerations for tracking errors, the HDFC Gold ETF emerges as a top contender for the best gold ETF in India. With a track record spanning 13 years, this ETF has managed to deliver an impressive return of 8.36% since its inception.
  • SBI Gold ETF: This gold EFT is mandated to allocate its assets in physical gold and potentially other mutual funds and ETFs that invest in gold. As a result, you can expect it to deliver returns that closely align with the performance of gold prices. With a history of 14 years and 4 months, SBI Gold ETF has exhibited a return of 9.09%.
  • ICICI Prudential Gold ETF: This open-ended commodity scheme is well-suited for long-term investments, making it an ideal choice for those seeking a strategy for long-term wealth creation. The scheme aligns with domestic gold prices derived from the London Bullion Market Association and has delivered 7.96% returns since its creation.
  • UTI Gold ETF: This gold EFT aims to generate returns that closely reflect the performance of gold, along with yield before deducting expenses. The UTI Gold ETF fund of funds (FoF) - Regular Plan is actively managed and has delivered 14.67% returnsin the last 10 months, since its establishment.
  • Nippon India Gold ETF: This is yet another top gold ETF in India, striving to deliver returns closely aligned with the price of gold through investments in physical gold. It is the most liquid and actively traded gold ETF in India. Nippon India ETF Gold Benchmark Exchange Traded Schemes (BeES) is 16 years and 5 months old. It has delivered 10.62% returns since its inception.

Gold ETF in India: A pathway to fulfilling your financial goals

In the world of investing, gold ETFs stand out as a relatively worry-free option. They eliminate concerns about gold purity and offer a practical alternative to physical gold ownership, serving as a commodity-based fund with gold as its underlying asset. Like stocks, they trade on stock exchanges. And, considering the fact that gold EFT brokerage or commission fees typically vary from 0.5% to 1%, they are easy on the pocket. As you venture into the realm of gold ETF investments in India, partner with an experienced ecosystem expert to navigate these intricacies. Open a demat account to #InvestRightInvestNow. Make informed decisions for your financial goals with one of India's largest trading platforms by your side.


The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.


Best Gold ETFs to Buy in India in 2023 - Upstox? ›

HDFC Gold ETF: Designed to closely mirror the performance of gold, with considerations for tracking errors, the HDFC Gold ETF emerges as a top contender for the best gold ETF in India. With a track record spanning 13 years, this ETF has managed to deliver an impressive return of 8.36% since its inception.

What are best ETFs for 2023? ›

Best Performing ETFs in 2023
  • Direxion Daily Homebuilders & Supplies Bull 3X Shares (NYSE:NAIL) ...
  • Bitwise Crypto Industry Innovators ETF (NYSE:BITQ) ...
  • ProShares UltraPro QQQ (NASDAQ:TQQQ) ...
  • VanEck Digital Transformation ETF (NASDAQ:DAPP) ...
  • Direxion Daily Semiconductor Bull 3X Shares (NYSE:SOXL)
Aug 25, 2023

Which gold ETF gives highest return in India? ›

Compare Best Gold ETFs to Invest in 2023
SBI Gold ETF (G)₹ 51.7919.1%
HDFC Gold Exchange Traded Fund (G)₹ 51.7619.3%
ICICI Prudential Gold ETF (G)₹ 51.7019.1%
Axis Gold Exchange Traded Fund (G)₹ 50.4019.1%
3 more rows

How do I invest in gold ETF in Upstox? ›

Investors can buy and sell gold ETFs on the stock exchange like they trade stocks. One of the benefits of gold ETFs is that they are easy to buy and sell and offer high liquidity. Moreover, investors can invest in gold ETFs with a small amount of money.

Can I buy ETF on Upstox? ›

You can place an order to buy ETF using Upstox Pro Web, Pro Mobile, NEST Trader, etc. The process to buy ETF is the same as buying shares or F&O contracts in upstox. You have to log in, add to the watchlist and place a buy order. Click on the [B] button next to the added ETF to buy it.

What is the best ETF for August 2023? ›

Top ETFs offer a cost-effective way for investors to diversify their portfolios across varied asset classes. ETFs for August with the best 1-month return include BKCH, ICVT, PFFR, OILK, and FXF. Blockchain and oil ETFs have performed well over the last month due to a positive outcome for cryptocurrencies in the SEC vs.

Where should I invest 2023? ›

As with any investment, base your decisions on your unique financial situation, which includes your goals, time horizon and risk tolerance:
  • Growth stock funds.
  • Value stock funds.
  • Dividend stock funds.
  • Index funds.
  • Long-term bond funds.
  • Short-term bond funds.
  • High-yield savings accounts.
  • Certificates of deposit.
Aug 29, 2023

How to invest in gold 2023? ›

If you want to invest directly in the value of gold, you might choose a physical gold investment in the form of bars or coins. Retirement-minded investors may even put their gold bars and coins in a gold IRA, which allows you to keep the precious metal for retirement while enjoying IRA tax advantages.

What is the 5 year return on gold ETF? ›

In this article we take a look at the last five-year returns of Gold and Gold ETFs: There is not much difference in the returns from Gold and Gold ETF. In five years, Gold has given a compounded annual return of 12.2% while Gold ETFs have given a return of 12.4% in the same period.

What is the best ETF for gold? ›

Best-performing gold ETFs
SymbolETF Name1-year return
BGLDFT Cboe Vest Gold Strategy Quarterly Buffer ETF12.62%
IAUMiShares Gold Trust Micro ETF of Benef Interest11.47%
AAAUGoldman Sachs Physical Gold ETF11.33%
OUNZVanEck Merk Gold Trust11.26%
Aug 31, 2023

What happened to Upstox gold? ›

Following the recent SEBI / Exchange directive, we are discontinuing our Digital Gold product. What does this mean? While you can no longer buy Digital Gold on Upstox, you can still sell Digital Gold till 5th September 2021 on our platform.

How to select best gold ETF in India? ›

Selecting the Right Gold ETF

You need to keep an eye on tracking errors as well as the trading volumes. Choose funds that have lower tracking error and higher trading volume. If you wish to buy or sell any ETF Unit, you can do that during trading hours of the stock market, which is 9.15 hrs to 15.30 hrs.

Is gold ETF profitable? ›

Gold ETFs are more profitable than other gold-based investments if you plan to invest large sums, or indulge in regular trade. Since gold ETFs come with brokerage or commission charges of 0.5 to 1 percent, shop around the ETF market a bit to find a stockbroker/fund manager whose charges are low.

What are the charges for Upstox ETF? ›

In addition to equity delivery & equity intraday, brokerage for equity futures is ₹20 per executed order or 0.05% (whichever is lower) and brokerage for equity options is flat ₹20 per executed order. We do not charge any commission/brokerage on Mutual Funds and IPO's.

What is brokerage charges on ETF in Upstox? ›

m.stock charges zero brokerage for life, on Delivery, F&O, Intraday, Currencies, IPOs, MTF, ETFs and everything els at a one-time fee of Rs. 999.

What is ETF in Upstox? ›

Exchange-traded Funds (ETFs) are a type of investment fund which are bought and sold on stock exchanges, just like stocks. ETFs are formulated to monitor the movements of a specific commodity, index, sector, or related assets.

What stock has the most potential to grow in 2023? ›

The 10 Best Growth Stocks of September 2023
Company (ticker)5-Year Avg. EPS Forecast
WillScot Mobile Mini (WSC)+51.6%
ACM Research (ACMR)+42.7%
Arcos Dorados (ARCO)+42.6%
Lamb Weston (LW)+37.1%
6 more rows
Sep 1, 2023

What is the best financial investment 2023? ›

Government and corporate bonds can provide a source of income and cushion stock market volatility. High-yield savings accounts, CDs and money market funds offer ways to offset the effects of inflation. Investors with a higher risk tolerance may consider cryptocurrencies or alternative investments.

What ETFs are expected to do well in 5 years? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
VGTVanguard Information Technology ETF16.71%
QCLNFirst Trust NASDAQ Clean Edge Green Energy Index Fund16.51%
TQQQProShares UltraPro QQQ16.23%
IXNiShares Global Tech ETF15.76%
93 more rows

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