E-Gold Vs Gold ETFs- Which is a Better Option?

Updated on November 1, 2026 , 31734 views

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

Fund Selection Methodology used to find 5 funds

Sub-category: Gold
Sorted On : 1-year return (high to low)
Tags: fcpro
No Of Funds: 5

Best Gold ETFs to Invest 2026

Some of the best underlying Gold ETFs to Invest are as follows:

1. Invesco India Gold Fund

To provide returns that closely corresponds to returns provided by Invesco India Gold Exchange Traded Fund.

Research Highlights for Invesco India Gold Fund

Bottom quartile AUM (₹507 Cr).
Established history (14+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 22.02% (upper mid).
3Y return: 29.20% (upper mid).
1Y return: 13.53% (top quartile).
1M return: -6.75% (top quartile).
Alpha: 0.00 (top quartile).
Sharpe: 0.83 (upper mid).
Information ratio: 0.00 (top quartile).
Top bond sector: Cash Equivalent.
Largest holding Invesco India Gold ETF (~95.3%).
Top-3 holdings concentration ~100.2%.

Below is the key information for Invesco India Gold Fund

Invesco India Gold Fund Growth
Launch Date	5 Dec 11
NAV (03 Nov 26)	₹38.2767 ↑ 0.17 (0.45 %)
Net Assets (Cr)	₹507 on 30 Sep 26
Category	Gold - Gold
AMC	Invesco Asset Management (India) Private Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	0.38
Sharpe Ratio	0.83
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
31 Oct 21	₹10,000
31 Oct 22	₹10,398
31 Oct 23	₹12,431
31 Oct 24	₹15,974
31 Oct 25	₹23,600
31 Oct 26	₹27,185

Invesco India Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹530,691.
Net Profit of ₹230,691 Invest Now

Returns for Invesco India Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Nov 26

Duration	Returns
1 Month	-6.8%
3 Month	-3.4%
6 Month	-8.3%
1 Year	13.5%
3 Year	29.2%
5 Year	22%
10 Year
15 Year
Since launch	9.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	69.6%
2024	18.8%
2023	14.5%
2022	12.8%
2021	-5.5%
2020	27.2%
2019	21.4%
2018	6.6%
2017	1.3%
2016	21.6%

Fund Manager information for Invesco India Gold Fund

Name	Since	Tenure
Abhisek Bahinipati	1 Nov 25	0.91 Yr.

Data below for Invesco India Gold Fund as on 30 Sep 26

Asset Allocation

Asset Class	Value
Cash	6.16%
Other	93.84%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Invesco India Gold ETF - \| -	95%	₹484 Cr	37,511,667 ↑ 389,212
Triparty Repo CBLO/Reverse Repo \| -	5%	₹24 Cr
Net Receivables / (Payables) Net Current Assets \| -	0%	-₹1 Cr

2. ICICI Prudential Regular Gold Savings Fund

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.

Research Highlights for ICICI Prudential Regular Gold Savings Fund

Upper mid AUM (₹7,067 Cr).
Oldest track record among peers (15 yrs).
Rating: 1★ (lower mid).
Risk profile: Moderately High.
5Y return: 22.01% (bottom quartile).
3Y return: 29.18% (lower mid).
1Y return: 12.68% (upper mid).
1M return: -7.18% (lower mid).
Alpha: 0.00 (upper mid).
Sharpe: 0.75 (bottom quartile).
Information ratio: 0.00 (upper mid).
Top bond sector: Cash Equivalent.
Largest holding ICICI Pru Gold ETF (~100.0%).
Top-3 holdings concentration ~101.2%.

Below is the key information for ICICI Prudential Regular Gold Savings Fund

ICICI Prudential Regular Gold Savings Fund Growth
Launch Date	11 Oct 11
NAV (03 Nov 26)	₹41.9235 ↑ 0.07 (0.17 %)
Net Assets (Cr)	₹7,067 on 30 Sep 26
Category	Gold - Gold
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆
Risk	Moderately High
Expense Ratio	0.47
Sharpe Ratio	0.75
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
31 Oct 21	₹10,000
31 Oct 22	₹10,384
31 Oct 23	₹12,439
31 Oct 24	₹15,973
31 Oct 25	₹23,796
31 Oct 26	₹27,359

ICICI Prudential Regular Gold Savings Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹530,691.
Net Profit of ₹230,691 Invest Now

Returns for ICICI Prudential Regular Gold Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Nov 26

Duration	Returns
1 Month	-7.2%
3 Month	-4%
6 Month	-9%
1 Year	12.7%
3 Year	29.2%
5 Year	22%
10 Year
15 Year
Since launch	10%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	72%
2024	19.5%
2023	13.5%
2022	12.7%
2021	-5.4%
2020	26.6%
2019	22.7%
2018	7.4%
2017	0.8%
2016	8.9%

Fund Manager information for ICICI Prudential Regular Gold Savings Fund

Name	Since	Tenure
Manish Banthia	27 Sep 12	14.02 Yr.
Nishit Patel	29 Dec 20	5.76 Yr.
Ashwini Bharucha	1 Nov 25	0.91 Yr.
Venus Ahuja	1 Nov 25	0.91 Yr.

Data below for ICICI Prudential Regular Gold Savings Fund as on 30 Sep 26

Asset Allocation

Asset Class	Value
Cash	1.81%
Other	98.19%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ICICI Pru Gold ETF - \| -	100%	₹7,064 Cr	560,288,419 ↑ 17,773,475
Treps CBLO/Reverse Repo \| -	1%	₹47 Cr
Net Current Assets Net Current Assets \| -	1%	-₹44 Cr

3. Axis Gold Fund

To generate returns that closely correspond to returns generated by Axis Gold ETF.

Research Highlights for Axis Gold Fund

Bottom quartile AUM (₹3,134 Cr).
Established history (15+ yrs).
Rating: 1★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 22.01% (lower mid).
3Y return: 29.01% (bottom quartile).
1Y return: 12.55% (lower mid).
1M return: -7.17% (upper mid).
Alpha: 0.00 (lower mid).
Sharpe: 0.82 (lower mid).
Information ratio: 0.00 (lower mid).
Top bond sector: Cash Equivalent.
Largest holding Axis Gold ETF (~100.1%).
Top-3 holdings concentration ~100.5%.

Below is the key information for Axis Gold Fund

Axis Gold Fund Growth
Launch Date	20 Oct 11
NAV (03 Nov 26)	₹39.3722 ↑ 0.13 (0.33 %)
Net Assets (Cr)	₹3,134 on 30 Sep 26
Category	Gold - Gold
AMC	Axis Asset Management Company Limited
Rating	☆
Risk	Moderately High
Expense Ratio	0.48
Sharpe Ratio	0.82
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Oct 21	₹10,000
31 Oct 22	₹10,458
31 Oct 23	₹12,534
31 Oct 24	₹16,061
31 Oct 25	₹23,903
31 Oct 26	₹27,368

Axis Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹530,691.
Net Profit of ₹230,691 Invest Now

Returns for Axis Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Nov 26

Duration	Returns
1 Month	-7.2%
3 Month	-4%
6 Month	-9%
1 Year	12.5%
3 Year	29%
5 Year	22%
10 Year
15 Year
Since launch	9.5%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	69.8%
2024	19.2%
2023	14.7%
2022	12.5%
2021	-4.7%
2020	26.9%
2019	23.1%
2018	8.3%
2017	0.7%
2016	10.7%

Fund Manager information for Axis Gold Fund

Name	Since	Tenure
Aditya Pagaria	9 Nov 21	4.9 Yr.
Pratik Tibrewal	1 Feb 25	1.66 Yr.

Data below for Axis Gold Fund as on 30 Sep 26

Asset Allocation

Asset Class	Value
Cash	1.76%
Other	98.24%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Axis Gold ETF - \| -	100%	₹3,136 Cr	256,005,579 ↑ 6,323,162
Net Receivables / (Payables) Net Current Assets \| -	0%	-₹7 Cr
Clearing Corporation Of India Ltd CBLO/Reverse Repo \| -	0%	₹6 Cr

4. SBI Gold Fund

The scheme seeks to provide returns that closely correspond to returns provided by SBI - ETF Gold (Previously known as SBI GETS).

Research Highlights for SBI Gold Fund

Highest AUM (₹17,423 Cr).
Established history (15+ yrs).
Rating: 2★ (upper mid).
Risk profile: Moderately High.
5Y return: 22.22% (top quartile).
3Y return: 29.32% (top quartile).
1Y return: 12.50% (bottom quartile).
1M return: -7.26% (bottom quartile).
Alpha: 0.00 (bottom quartile).
Sharpe: 0.79 (bottom quartile).
Information ratio: 0.00 (bottom quartile).
Top bond sector: Cash Equivalent.
Largest holding SBI Gold ETF (~100.2%).
Top-3 holdings concentration ~100.9%.

Below is the key information for SBI Gold Fund

SBI Gold Fund Growth
Launch Date	12 Sep 11
NAV (03 Nov 26)	₹39.6727 ↑ 0.07 (0.17 %)
Net Assets (Cr)	₹17,423 on 30 Sep 26
Category	Gold - Gold
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	Moderately High
Expense Ratio	0.33
Sharpe Ratio	0.79
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
31 Oct 21	₹10,000
31 Oct 22	₹10,409
31 Oct 23	₹12,506
31 Oct 24	₹16,043
31 Oct 25	₹23,974
31 Oct 26	₹27,533

SBI Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹530,691.
Net Profit of ₹230,691 Invest Now

Returns for SBI Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Nov 26

Duration	Returns
1 Month	-7.3%
3 Month	-4%
6 Month	-8.9%
1 Year	12.5%
3 Year	29.3%
5 Year	22.2%
10 Year
15 Year
Since launch	9.5%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	71.5%
2024	19.6%
2023	14.1%
2022	12.6%
2021	-5.7%
2020	27.4%
2019	22.8%
2018	6.4%
2017	3.5%
2016	10%

Fund Manager information for SBI Gold Fund

Name	Since	Tenure
Viral Chhadva	1 Mar 26	0.59 Yr.

Data below for SBI Gold Fund as on 30 Sep 26

Asset Allocation

Asset Class	Value
Cash	1.5%
Other	98.5%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
SBI Gold ETF - \| -	100%	₹17,451 Cr	1,389,274,664 ↑ 45,015,601
Net Receivable / Payable CBLO \| -	0%	-₹78 Cr
Treps CBLO/Reverse Repo \| -	0%	₹50 Cr

5. Kotak Gold Fund

The investment objective of the scheme is to generate returns by investing in units of Kotak Gold Exchange Traded Fund.

Research Highlights for Kotak Gold Fund

Lower mid AUM (₹6,996 Cr).
Established history (15+ yrs).
Rating: 1★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 21.65% (bottom quartile).
3Y return: 28.96% (bottom quartile).
1Y return: 12.46% (bottom quartile).
1M return: -7.30% (bottom quartile).
Alpha: 0.00 (bottom quartile).
Sharpe: 0.85 (top quartile).
Information ratio: 0.00 (bottom quartile).
Top bond sector: Cash Equivalent.
Largest holding Kotak Gold ETF (~99.8%).
Top-3 holdings concentration ~100.5%.

Below is the key information for Kotak Gold Fund

Kotak Gold Fund Growth
Launch Date	25 Mar 11
NAV (03 Nov 26)	₹52.0295 ↑ 0.06 (0.12 %)
Net Assets (Cr)	₹6,996 on 30 Sep 26
Category	Gold - Gold
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆
Risk	Moderately High
Expense Ratio	0.5
Sharpe Ratio	0.85
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
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
31 Oct 21	₹10,000
31 Oct 22	₹10,331
31 Oct 23	₹12,360
31 Oct 24	₹15,786
31 Oct 25	₹23,507
31 Oct 26	₹27,011

Kotak Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹518,033.
Net Profit of ₹218,033 Invest Now

Returns for Kotak Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Nov 26

Duration	Returns
1 Month	-7.3%
3 Month	-4%
6 Month	-8.9%
1 Year	12.5%
3 Year	29%
5 Year	21.7%
10 Year
15 Year
Since launch	11.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	70.4%
2024	18.9%
2023	13.9%
2022	11.7%
2021	-4.7%
2020	26.6%
2019	24.1%
2018	7.3%
2017	2.5%
2016	10.2%

Fund Manager information for Kotak Gold Fund

Name	Since	Tenure
Abhishek Bisen	25 Mar 11	15.53 Yr.
Jeetu Sonar	1 Oct 22	4 Yr.

Data below for Kotak Gold Fund as on 30 Sep 26

Asset Allocation

Asset Class	Value
Cash	1.52%
Other	98.48%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Kotak Gold ETF - \| -	100%	₹6,985 Cr	568,465,587 ↑ 10,074,800
Triparty Repo CBLO/Reverse Repo \| -	0%	₹29 Cr
Net Current Assets/(Liabilities) Net Current Assets \| -	0%	-₹19 Cr

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Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.