Best Gold ETFs in India 2025 — Rates, Returns & How to Choose the Right One

Best Gold ETFs in India 2025: Rates, Returns, and How to Choose

Investing in gold through Exchange Traded Funds (ETFs) has become one of the easiest, cheapest and most liquid ways for Indian investors to gain exposure to physical gold without the hassles of storage, making and purity checks. Best Gold ETFs India 2025

In 2025, gold posted strong gains and investor interest—so if you’re thinking about adding gold to your portfolio, this guide walks you through the best Gold ETFs in India (2025), their recent rates and returns, and a practical, SEO-friendly framework to choose the right ETF for your needs.

Quick snapshot: Top names you’ll see repeatedly

Nippon India ETF Gold BeES
HDFC Gold ETF
SBI Gold ETF
ICICI Prudential Gold ETF

Kotak Gold ETF — these are among the largest and most traded Gold ETFs in India and are frequently recommended because of liquidity, low tracking error and established fund houses. 

Why choose a Gold ETF (short and sharp)

No physical storage or making charges — you own units, not jewellery.

Traded on stock exchanges — buy/sell during market hours like stocks.

Lower costs than buying physical (often) — no making charges; only expense ratio and brokerage.

Good for portfolio diversification and inflation hedge — gold historically performs well when real rates are low or in times of uncertainty.

 

What “rates” and “returns” mean for Gold ETFs

NAV (Net Asset Value): the per-unit value of the ETF (changes daily with gold price). Example NAVs as of late September 2025: Nippon India Gold BeES ~ ₹94.07, HDFC Gold ETF ~ ₹97.03, SBI Gold ETF ~ ₹96.93. These show how unit values move as underlying gold prices change. 

Expense ratio: annual fee charged by the fund — directly reduces your return. Lower is usually better for long-term holding.

Tracking error: how closely the ETF follows gold’s price. Smaller tracking error = better replication.

Returns: usually shown for 1Y, 3Y, 5Y annualized and since-inception. Gold ETFs typically follow gold price returns closely (minus fees & tracking error).

Market context — why 2025 matters

Gold had a strong run in 2025 driven by macro uncertainty, inflation concerns and seasonal demand in India (festive & marriage season), pushing prices to multi-year highs and lifting Gold ETFs’ performance. This macro backdrop is important because ETFs track spot gold—when gold rallies, ETFs benefit directly. 

Top Gold ETFs in India (2025) — Overview & what's notable

Below are the most popular and widely held Gold ETFs in India as of September 2025. I include the fundhouse, why investors like them, and key metrics you should care about.

1. Nippon India ETF Gold BeES

• Why it’s popular: Oldest & one of the largest Gold ETFs in India — high liquidity and tight bid-ask spreads.
• Key numbers (late Sep 2025): NAV ≈ ₹94.07; large AUM; expense ratio competitive. Historical returns show strong 1Y and multi-year gains reflecting the 2025 gold rally. 

2. HDFC Gold ETF

• Why it’s popular: Managed by a well-known fund house with competitive expense ratio and consistent tracking. Good for investors who prefer HDFC’s distribution and platform reach.
• Key numbers (late Sep 2025): NAV ≈ ₹97.03; solid fund size and competitive fees. 

3. SBI Gold ETF

• Why it’s popular: Backed by SBI Mutual Fund — strong distribution and large retail adoption. Often available on many platforms with reasonable liquidity.
• Key numbers (late Sep 2025): NAV ≈ ₹96.93; notable AUM and long track record. 

4. ICICI Prudential Gold ETF

• Why it’s popular: Another big player with decent liquidity and low tracking error. Good for investors seeking a reliable large-cap fund house. (Platform pages list NAV/returns; compare expense ratios when choosing.)

5. Kotak Gold ETF

• Why it’s popular: Competitive expense ratio and growing AUM; often features among top traded gold ETFs.

Note: There are other valid options (Quantam, UTI, Axis when available) — choose based on liquidity, expense ratio and convenience on your broker. For a final choice use the checklist below.

(For real-time NAVs, expense ratio and exact AUMs check the fundhouse or your broker — NAVs move with gold prices.) 

Comparative factors — what to compare (a checklist)

When choosing among Gold ETFs, compare these elements (in order of importance for most investors):

1. Expense ratio (annual cost): Even small differences compound over years. Prefer the lowest reasonable expense for long-term holding.
2. Liquidity / AUM / daily volume: Higher AUM and daily volumes mean easier and cheaper trading (tighter bid-ask spreads).
3. Tracking error: Look at the fund’s historical tracking error. Lower = closer to gold price. Many large providers have small tracking errors.
4. Fund house reputation & operational history: Established AMCs reduce operational risk.
5. Brokerage & transaction cost: ETFs are bought/sold like stocks — brokerage and STT apply. Factor total cost to buy/sell, not just expense ratio.
6. Tax & product structure: Gold ETFs are treated as capital assets. Long-term capital gains (after 36 months) get indexation benefit; short-term gains taxed at slab rate. (Note: tax rules can change — always confirm current rules at time of trade.)
7. Availability on your platform: If your broker offers a particular ETF with good execution and low fees, that can be decisive for small investors.

Example comparison (how to read fund pages)

Let’s walk through a practical comparison you can do on any fund page or aggregator:Practical tips for investors (step-by-step)

1. Decide your role for gold: Is it insurance (small % of portfolio), short-term trade, or long-term allocation? Recommended: 5–10% for diversification for most investors, more for those with higher inflation hedge needs.
2. Pick the ETF using the checklist (expense ratio, liquidity, tracking error). For core exposure, prefer large, liquid ETFs like Nippon, HDFC or SBI. 
3. Choose buying method: Lump-sum via your broker or staggered SIP-like purchases in the ETF (systematic investment by buying units periodically). SIP in ETFs requires manual or platform-specific systematic purchase features.
4. Mind transaction costs: Brokerage and STT (Securities Transaction Tax) are applied—calculate final cost. Low brokerage brokers improve net returns.
5. Hold horizon: For tax efficiency and to ride out volatility, consider medium to long-term holding (3+ years) to avail indexation benefits for LTCG on Gold ETFs in India. (Confirm current tax rules at time of investment.)

Exit strategy: Set target price, or treat it as part of rebalancing — sell only when it helps your overall allocation or to realize gains during rallies

Common investor questions answered (quick)

• Is Gold ETF better than physical gold? For most investors: yes — cheaper to buy/sell, no making charges, no storage hassle. For gifting or jewellery needs you still need physical gold.
• Should I buy gold ETF or Sovereign Gold Bond (SGB)? SGB offers interest (~2.5-2.75% p.a. historically) and capital gain advantages if held to maturity, while Gold ETFs offer liquidity. Your choice depends on need for liquidity vs tax and interest.
• Can Gold ETFs go to zero? Extremely unlikely — they track physical gold. Operational or extreme custodian issues are risks but improbable with large, reputable fund houses.

 

Short checklist before you click “Buy”

• Fund’s expense ratio is acceptable.
• Daily liquidity is good (check volumes).
• Fundhouse is reputable.
• You understand tax on holding/exit.

Your overall portfolio allocation to gold is decided and documented

Sample allocation ideas (not financial advice — illustrative)

• Conservative: 5% of portfolio in Gold ETF (core hedge).
• Balanced: 7–10% for portfolios with equity+debt mix.
• Tactical: 10–20% for short-term safe-haven exposure during market stress (active rebalancing required).

 

How to monitor performance after investing

• Track the ETF NAV vs spot gold price to ensure low tracking error.
• Rebalance yearly — if gold allocation drifts >2–3% from target, rebalance.
• Use fund statements and the AMC website for official NAVs and factsheets.

Risks to remember

• Price volatility: Gold can be volatile in the short term.
• Tracking error & fees: Can lower returns vs physical gold price.
• Regulatory/tax changes: Can affect net returns — keep updated.
• Liquidity risk during stress: Extremely rare for top ETFs but possible for smaller schemes.

 

Where to check up-to-date facts (quick links)

For live NAVs, expense ratios and official factsheets, use the fund house pages and leading aggregators (Groww, ET Money, Tickertape, Morningstar). Example fund pages for reference: Nippon India ETF Gold BeES, HDFC Gold ETF and SBI Gold ETF (these pages show NAV/AUM/returns updated regularly). 

Conclusion — bottom line

Gold ETFs remain one of the simplest and cost-effective ways to add gold exposure to your portfolio in 2025. Choose a large, liquid ETF with a low expense ratio from a reputed AMC and match the holding period to your financial goals. Use Gold ETFs for diversification and as a hedge, not a speculative shortcut—unless you’re actively trading with a clear plan. The big names (Nippon, HDFC, SBI, ICICI, Kotak) are good starting points for comparison, but always check current NAVs, fees and daily liquidity on the fund page before buying. 

 

FAQs (short & SEO-friendly)

Q1: Which Gold ETF is best in India for 2025?
A: “Best” depends on your criteria (lowest cost vs highest liquidity). Nippon India ETF Gold BeES, HDFC Gold ETF and SBI Gold ETF are among the most recommended due to size, liquidity and consistent tracking. Always compare expense ratio and daily volumes. Best Gold ETFs India 2025

Q2: Are Gold ETFs taxed differently than physical gold?

A: Gold ETFs are taxed as capital assets. If sold after 36 months, gains are long-term and eligible for indexation. Short-term gains (≤36 months) are taxed at slab rates. (Confirm current tax rules before investing.)

Q3: Can I buy Gold ETFs with SIP?
A: Many platforms allow periodic purchases of ETFs (manual or automated). Check with your broker for systematic investment plans in ETFs.

Q4: What is expense ratio and why it matters?
A: Expense ratio is the fund’s annual fee. It reduces your returns; over long periods even small differences matter.

How Gold ETF returns behaved in 2025 (real-world numbers)

Because Gold ETFs track spot gold, returns reflect gold’s surge in 2025. For instance, Nippon India ETF Gold BeES showed strong 1-year returns in 2025 (annual absolute returns and multi-year numbers available on fund pages and aggregator sites). 

These returns are driven by the underlying bullion rally. Always compare the ETF’s return numbers against spot gold returns (less fees) to assess tracking performance. 

Best Gold ETFs India 2025