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

Updated on June 5, 2025 , 30002 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-vs-gold-etfs

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 2025

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

1. 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.

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 CAGR/Annualized return of 8.5% since its launch.  Return for 2024 was 19.5% , 2023 was 13.5% and 2022 was 12.7% .

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 (06 Jun 25) ₹30.3889 ↓ -0.15   (-0.48 %)
Net Assets (Cr) ₹2,057 on 30 Apr 25
Category Gold - Gold
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.4
Sharpe Ratio 1.54
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.

DateValue
31 May 20₹10,000
31 May 21₹10,309
31 May 22₹10,650
31 May 23₹12,349
31 May 24₹14,729
31 May 25₹19,112

ICICI Prudential Regular Gold Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
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 6 Jun 25

DurationReturns
1 Month -0.3%
3 Month 13.1%
6 Month 26.9%
1 Year 32.1%
3 Year 22.4%
5 Year 14.2%
10 Year
15 Year
Since launch 8.5%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2015 -5.1%
Fund Manager information for ICICI Prudential Regular Gold Savings Fund
NameSinceTenure
Manish Banthia27 Sep 1212.68 Yr.
Nishit Patel29 Dec 204.42 Yr.

Data below for ICICI Prudential Regular Gold Savings Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash1.59%
Other98.41%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Pru Gold ETF
- | -
100%₹2,053 Cr251,671,554
↑ 3,890,309
Treps
CBLO/Reverse Repo | -
1%₹11 Cr
Net Current Assets
Net Current Assets | -
0%-₹8 Cr

2. IDBI Gold Fund

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 CAGR/Annualized return of 7.6% since its launch.  Return for 2024 was 18.7% , 2023 was 14.8% and 2022 was 12% .

Below is the key information for IDBI Gold Fund

IDBI Gold Fund
Growth
Launch Date 14 Aug 12
NAV (06 Jun 25) ₹25.5369 ↓ -0.09   (-0.35 %)
Net Assets (Cr) ₹125 on 30 Apr 25
Category Gold - Gold
AMC IDBI Asset Management Limited
Rating Not Rated
Risk Moderately High
Expense Ratio 0.65
Sharpe Ratio 1.59
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.

DateValue
31 May 20₹10,000
31 May 21₹9,198
31 May 22₹9,500
31 May 23₹11,247
31 May 24₹13,360
31 May 25₹17,284

IDBI Gold Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684
Invest Now

Returns for IDBI 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 6 Jun 25

DurationReturns
1 Month -1%
3 Month 12.6%
6 Month 26.7%
1 Year 32.1%
3 Year 22.3%
5 Year 12.7%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2024 18.7%
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%
Fund Manager information for IDBI Gold Fund
NameSinceTenure
Sumit Bhatnagar1 Jun 241 Yr.

Data below for IDBI Gold Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash1.17%
Other98.83%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
LIC MF Gold ETF
- | -
99%₹148 Cr171,319
↑ 28,800
Treps
CBLO/Reverse Repo | -
3%₹4 Cr
Net Receivables / (Payables)
Net Current Assets | -
2%-₹3 Cr

3. SBI Gold Fund

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 CAGR/Annualized return of 8% since its launch.  Return for 2024 was 19.6% , 2023 was 14.1% and 2022 was 12.6% .

Below is the key information for SBI Gold Fund

SBI Gold Fund
Growth
Launch Date 12 Sep 11
NAV (06 Jun 25) ₹28.6524 ↓ -0.20   (-0.69 %)
Net Assets (Cr) ₹3,931 on 30 Apr 25
Category Gold - Gold
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 0.29
Sharpe Ratio 1.56
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.

DateValue
31 May 20₹10,000
31 May 21₹10,390
31 May 22₹10,703
31 May 23₹12,495
31 May 24₹14,895
31 May 25₹19,303

SBI Gold Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
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 6 Jun 25

DurationReturns
1 Month -0.5%
3 Month 12.8%
6 Month 26.8%
1 Year 31.8%
3 Year 22.4%
5 Year 14.4%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2015 -8.1%
Fund Manager information for SBI Gold Fund
NameSinceTenure
Raj gandhi1 Jan 1312.42 Yr.

Data below for SBI Gold Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash1.27%
Other98.73%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI Gold ETF
- | -
100%₹3,939 Cr483,231,791
↑ 15,977,871
Net Receivable / Payable
CBLO | -
1%-₹23 Cr
Treps
CBLO/Reverse Repo | -
0%₹15 Cr

4. HDFC Gold Fund

To seek capital appreciation by investing in units of HDFC Gold Exchange Traded Fund (HGETF).

HDFC Gold Fund is a Gold - Gold fund was launched on 24 Oct 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 8.2% since its launch.  Return for 2024 was 18.9% , 2023 was 14.1% and 2022 was 12.7% .

Below is the key information for HDFC Gold Fund

HDFC Gold Fund
Growth
Launch Date 24 Oct 11
NAV (06 Jun 25) ₹29.2973 ↓ -0.22   (-0.75 %)
Net Assets (Cr) ₹3,871 on 30 Apr 25
Category Gold - Gold
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.49
Sharpe Ratio 1.57
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load 0-6 Months (2%),6-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,378
31 May 22₹10,690
31 May 23₹12,397
31 May 24₹14,816
31 May 25₹19,178

HDFC Gold Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
Invest Now

Returns for HDFC 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 6 Jun 25

DurationReturns
1 Month -0.6%
3 Month 12.8%
6 Month 26.8%
1 Year 31.8%
3 Year 22.3%
5 Year 14.3%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
2024 18.9%
2023 14.1%
2022 12.7%
2021 -5.5%
2020 27.5%
2019 21.7%
2018 6.6%
2017 2.8%
2016 10.1%
2015 -7.3%
Fund Manager information for HDFC Gold Fund
NameSinceTenure
Arun Agarwal15 Feb 232.29 Yr.
Nandita Menezes29 Mar 250.17 Yr.

Data below for HDFC Gold Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash1.44%
Other98.56%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Gold ETF
- | -
100%₹3,880 Cr474,995,164
↑ 12,641,486
Net Current Assets
Net Current Assets | -
1%-₹23 Cr
Treps - Tri-Party Repo
CBLO/Reverse Repo | -
0%₹14 Cr

5. Nippon India Gold Savings Fund

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 CAGR/Annualized return of 9.7% since its launch.  Return for 2024 was 19% , 2023 was 14.3% and 2022 was 12.3% .

Below is the key information for Nippon India Gold Savings Fund

Nippon India Gold Savings Fund
Growth
Launch Date 7 Mar 11
NAV (06 Jun 25) ₹37.5215 ↓ -0.23   (-0.61 %)
Net Assets (Cr) ₹2,959 on 30 Apr 25
Category Gold - Gold
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately High
Expense Ratio 0.34
Sharpe Ratio 1.53
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.

DateValue
31 May 20₹10,000
31 May 21₹10,352
31 May 22₹10,637
31 May 23₹12,332
31 May 24₹14,732
31 May 25₹19,039

Nippon India Gold Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
Invest Now

Returns for Nippon India 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 6 Jun 25

DurationReturns
1 Month -1.1%
3 Month 12.9%
6 Month 26.7%
1 Year 31.7%
3 Year 22.2%
5 Year 14.1%
10 Year
15 Year
Since launch 9.7%
Historical performance (Yearly) on absolute basis
YearReturns
2024 19%
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%
Fund Manager information for Nippon India Gold Savings Fund
NameSinceTenure
Himanshu Mange23 Dec 231.44 Yr.

Data below for Nippon India Gold Savings Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash1.45%
Other98.55%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nippon India ETF Gold BeES
- | -
100%₹2,960 Cr374,289,097
↑ 4,429,805
Net Current Assets
Net Current Assets | -
0%-₹12 Cr
Triparty Repo
CBLO/Reverse Repo | -
0%₹11 Cr
Cash Margin - Ccil
CBLO | -
0%₹0 Cr
Cash
Net Current Assets | -
0%₹0 Cr00

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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.
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