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E-Gold Vs Gold ETFs- Which is a Better Option?
E-Gold Vs Gold ETFs? Which is a better Gold Investment option? Which avenue has a higher yield? These are some of the common questions often asked by an investor wanting to invest in these non-physical form of gold. Well, both the forms are unique in trading with each having its own benefits in essential parameters like returns, taxation, holding period, etc. Therefore, we will see how both- Gold ETFs and E-Gold differ from each other and which form makes a better gold investment option!
E- Gold
E-Gold is a unique gold investment product launched by the National Spot Exchange Limited (NSEL). This product enables investors to Buy Gold in an electronic form on the NSE’s trading platform and the gold bought by you will reflect in your Demat account.
E-Gold is one such investment that allows investors to buy gold in a smaller denomination, such as 1gm, 2gm, 3gm, etc. The gold units that you would buy here will be credited to your Demat account in T+2 days. Similarly, for instance, if you have sold today, the same will debited from your Demat account in 2 days (from the date of sale).
E-gold is less expensive compared to gold ETFs as the latter is exposed to various charges like asset management fees, security service fees, etc. To know the current value of your investment in gold ETFs, you have to track the NAV of that fund but in the case of e-gold, the value is that of the prevailing gold price.
Gold ETFs
Gold ETFs has become one of the most popular modes of gold investments. Gold ETFs are also the Underlying of open-ended Gold Mutual Funds that help you to invest your money in gold. The underlying gold purity is 99.5%. Gold ETFs are also known as paper gold. These are listed and traded on major stock exchanges and investors are assigned units where each unit usually represents one gram of gold.
In gold ETFs, investors can trade in their existing Demat account. Gold ETFs offers investors a secure way to access the gold Market. They also provide the benefit of liquidity as it can be traded at any time during the trading period.
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E-Gold Vs Gold ETFs: Know the Key Differences
Trading Time
Gold ETFs can be traded only between 9:00 am to 3:30 pm on weekdays. Whereas, e-gold can be traded from 10:00 am to 11:30 pm on weekdays.
Conversion to Physical Form
Both the forms can be converted into physical gold, but the minimum quantity for each varies. The minimum quantity for e-gold is 8 grams, while, in gold-ETF, one can convert only when it exceeds a certain size of 500gm to 1Kg.
E-Gold is the Most Cost
Efficient form and is able to trace gold prices more closely than gold ETFs. However, e-gold loses out to gold ETFs when it comes to taxation.
But, now, when you know the key difference between these two forms, invest in an avenue that offers secure investment with better returns!
| Parameters | Gold ETFs | E-Gold |
|---|---|---|
| Separate Demat Account | No | Yes |
| Holdings | Owned by AMCs | Yes |
| Conversion to Physical Gold | Minimum 0.5-1 kg | Investors directly hold gold units in demat account |
| Short Term Capital Gains | Less than 1 year- 20% tax on returns | Less than 3 years- 20% tax on returns |
| Long Term Capital Gains | After 1 year- 10% tax returns | After 3 years- 10% tax on returns |
| Recurring Expenses | 0.40% | 1% |
| Returns | Highest at it's the most cost-effective | Slightly lower than gold ETF |
| Pricing | Linked to International Gold Price | Linked to Indian Gold Price |
| Convert to Jewelry | Not available | Available with selected Jewellers |
Best Gold ETFs to Invest 2024
Some of the best underlying Gold ETFs to Invest are as follows:
To provide returns that closely corresponds to returns provided by Invesco India Gold Exchange Traded Fund. Invesco India Gold Fund is a Gold - Gold fund was launched on 5 Dec 11. It is a fund with Moderately High risk and has given a Below is the key information for Invesco India Gold Fund Returns up to 1 year are on ICICI Prudential Regular Gold Savings Fund (the Scheme) is a fund of funds scheme with the primary objective to generate returns by investing in units of ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF).
However, there can be no assurance that the investment objectives of the Scheme will be realized. ICICI Prudential Regular Gold Savings Fund is a Gold - Gold fund was launched on 11 Oct 11. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Regular Gold Savings Fund Returns up to 1 year are on The scheme seeks to provide returns that closely correspond to returns provided by SBI - ETF Gold (Previously known as SBI GETS). SBI Gold Fund is a Gold - Gold fund was launched on 12 Sep 11. It is a fund with Moderately High risk and has given a Below is the key information for SBI Gold Fund Returns up to 1 year are on The investment objective of the Scheme will be to generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund (IDBI GOLD ETF). IDBI Gold Fund is a Gold - Gold fund was launched on 14 Aug 12. It is a fund with Moderately High risk and has given a Below is the key information for IDBI Gold Fund Returns up to 1 year are on The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by Reliance ETF Gold BeES. Nippon India Gold Savings Fund is a Gold - Gold fund was launched on 7 Mar 11. It is a fund with Moderately High risk and has given a Below is the key information for Nippon India Gold Savings Fund Returns up to 1 year are on 1. Invesco India Gold Fund
CAGR/Annualized return of 6.3% since its launch. Return for 2023 was 14.5% , 2022 was 12.8% and 2021 was -5.5% . Invesco India Gold Fund
Growth Launch Date 5 Dec 11 NAV (11 Oct 24) ₹21.8808 ↑ 0.23 (1.08 %) Net Assets (Cr) ₹77 on 31 Aug 24 Category Gold - Gold AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.45 Sharpe Ratio 1.03 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-6 Months (2%),6-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹12,990 30 Sep 21 ₹11,626 30 Sep 22 ₹12,706 30 Sep 23 ₹14,413 30 Sep 24 ₹18,568 Returns for Invesco India Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Oct 24 Duration Returns 1 Month 4.9% 3 Month 3.4% 6 Month 4.9% 1 Year 29.2% 3 Year 16% 5 Year 13.1% 10 Year 15 Year Since launch 6.3% Historical performance (Yearly) on absolute basis
Year Returns 2023 14.5% 2022 12.8% 2021 -5.5% 2020 27.2% 2019 21.4% 2018 6.6% 2017 1.3% 2016 21.6% 2015 -15.1% 2014 -9% Fund Manager information for Invesco India Gold Fund
Name Since Tenure Herin Shah 1 Aug 24 0.08 Yr. Data below for Invesco India Gold Fund as on 31 Aug 24
Asset Allocation
Asset Class Value Cash 3.62% Other 96.38% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Gold ETF
- | -98% ₹75 Cr 118,580
↑ 995 Triparty Repo
CBLO/Reverse Repo | -2% ₹2 Cr Net Receivables / (Payables)
Net Current Assets | -0% ₹0 Cr 2. ICICI Prudential Regular Gold Savings Fund
CAGR/Annualized return of 6.9% since its launch. Return for 2023 was 13.5% , 2022 was 12.7% and 2021 was -5.4% . ICICI Prudential Regular Gold Savings Fund
Growth Launch Date 11 Oct 11 NAV (11 Oct 24) ₹23.792 ↑ 0.23 (0.98 %) Net Assets (Cr) ₹1,067 on 31 Aug 24 Category Gold - Gold AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.4 Sharpe Ratio 0.96 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-15 Months (2%),15 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹13,191 30 Sep 21 ₹11,918 30 Sep 22 ₹12,866 30 Sep 23 ₹14,626 30 Sep 24 ₹18,891 Returns for ICICI Prudential Regular Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Oct 24 Duration Returns 1 Month 4.7% 3 Month 3% 6 Month 4.9% 1 Year 29% 3 Year 15.7% 5 Year 13.2% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 13.5% 2022 12.7% 2021 -5.4% 2020 26.6% 2019 22.7% 2018 7.4% 2017 0.8% 2016 8.9% 2015 -5.1% 2014 -9.2% Fund Manager information for ICICI Prudential Regular Gold Savings Fund
Name Since Tenure Manish Banthia 27 Sep 12 11.94 Yr. Nishit Patel 29 Dec 20 3.68 Yr. Data below for ICICI Prudential Regular Gold Savings Fund as on 31 Aug 24
Asset Allocation
Asset Class Value Cash 1.93% Other 98.07% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -100% ₹1,063 Cr 169,882,283
↑ 4,965,988 Treps
CBLO/Reverse Repo | -1% ₹7 Cr Net Current Assets
Net Current Assets | -0% -₹2 Cr 3. SBI Gold Fund
CAGR/Annualized return of 6.4% since its launch. Return for 2023 was 14.1% , 2022 was 12.6% and 2021 was -5.7% . SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (11 Oct 24) ₹22.4418 ↑ 0.21 (0.95 %) Net Assets (Cr) ₹2,028 on 31 Aug 24 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.29 Sharpe Ratio 0.93 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹13,310 30 Sep 21 ₹12,019 30 Sep 22 ₹12,995 30 Sep 23 ₹14,818 30 Sep 24 ₹19,125 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Oct 24 Duration Returns 1 Month 4.6% 3 Month 3% 6 Month 4.6% 1 Year 29% 3 Year 15.9% 5 Year 13.3% 10 Year 15 Year Since launch 6.4% Historical performance (Yearly) on absolute basis
Year Returns 2023 14.1% 2022 12.6% 2021 -5.7% 2020 27.4% 2019 22.8% 2018 6.4% 2017 3.5% 2016 10% 2015 -8.1% 2014 -10.2% Fund Manager information for SBI Gold Fund
Name Since Tenure Raviprakash Sharma 12 Sep 11 12.98 Yr. Data below for SBI Gold Fund as on 31 Aug 24
Asset Allocation
Asset Class Value Cash 1.64% Other 98.36% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹2,027 Cr 324,109,170
↑ 13,467,765 Treps
CBLO/Reverse Repo | -0% ₹8 Cr Net Receivable / Payable
CBLO | -0% -₹7 Cr 4. IDBI Gold Fund
CAGR/Annualized return of 5.9% since its launch. Return for 2023 was 14.8% , 2022 was 12% and 2021 was -4% . IDBI Gold Fund
Growth Launch Date 14 Aug 12 NAV (11 Oct 24) ₹20.0584 ↑ 0.22 (1.10 %) Net Assets (Cr) ₹57 on 31 Aug 24 Category Gold - Gold AMC IDBI Asset Management Limited Rating Risk Moderately High Expense Ratio 0.65 Sharpe Ratio 0.99 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹12,616 30 Sep 21 ₹11,628 30 Sep 22 ₹12,689 30 Sep 23 ₹14,420 30 Sep 24 ₹18,713 Returns for IDBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Oct 24 Duration Returns 1 Month 4.8% 3 Month 3% 6 Month 5% 1 Year 28.8% 3 Year 16.2% 5 Year 13.1% 10 Year 15 Year Since launch 5.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 14.8% 2022 12% 2021 -4% 2020 24.2% 2019 21.6% 2018 5.8% 2017 1.4% 2016 8.3% 2015 -8.7% 2014 0.2% Fund Manager information for IDBI Gold Fund
Name Since Tenure Sumit Bhatnagar 1 Jun 24 0.25 Yr. Data below for IDBI Gold Fund as on 31 Aug 24
Asset Allocation
Asset Class Value Other 100.08% Top Securities Holdings / Portfolio
Name Holding Value Quantity LIC MF Gold ETF
- | -99% ₹57 Cr 87,026
↑ 3,249 Treps
CBLO/Reverse Repo | -1% ₹0 Cr Net Receivables / (Payables)
Net Current Assets | -0% ₹0 Cr 5. Nippon India Gold Savings Fund
CAGR/Annualized return of 8.3% since its launch. Return for 2023 was 14.3% , 2022 was 12.3% and 2021 was -5.5% . Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (11 Oct 24) ₹29.4199 ↑ 0.25 (0.84 %) Net Assets (Cr) ₹1,907 on 31 Aug 24 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.34 Sharpe Ratio 0.98 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (2%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹13,362 30 Sep 21 ₹11,971 30 Sep 22 ₹12,951 30 Sep 23 ₹14,742 30 Sep 24 ₹18,940 Returns for Nippon India Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Oct 24 Duration Returns 1 Month 4.6% 3 Month 2.9% 6 Month 4.6% 1 Year 28.8% 3 Year 15.6% 5 Year 13.2% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 2023 14.3% 2022 12.3% 2021 -5.5% 2020 26.6% 2019 22.5% 2018 6% 2017 1.7% 2016 11.6% 2015 -8.1% 2014 -9.8% Fund Manager information for Nippon India Gold Savings Fund
Name Since Tenure Himanshu Mange 23 Dec 23 0.69 Yr. Data below for Nippon India Gold Savings Fund as on 31 Aug 24
Asset Allocation
Asset Class Value Cash 1.4% Other 98.6% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | -100% ₹1,906 Cr 314,206,292
↑ 8,505,517 Triparty Repo
CBLO/Reverse Repo | -0% ₹5 Cr Net Current Assets
Net Current Assets | -0% -₹5 Cr Cash Margin - Ccil
CBLO | -0% ₹0 Cr
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