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

Updated on October 2, 2022 , 22179 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 2022

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

1. 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 3.3% since its launch.  Return for 2021 was -4% , 2020 was 24.2% and 2019 was 21.6% .

Below is the key information for IDBI Gold Fund

IDBI Gold Fund
Growth
Launch Date 14 Aug 12
NAV (04 Oct 22) ₹13.8964 ↑ 0.21   (1.55 %)
Net Assets (Cr) ₹40 on 31 Aug 22
Category Gold - Gold
AMC IDBI Asset Management Limited
Rating Not Rated
Risk Moderately High
Expense Ratio 0.67
Sharpe Ratio 0.48
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
30 Sep 17₹10,000
30 Sep 18₹9,993
30 Sep 19₹12,270
30 Sep 20₹15,479
30 Sep 21₹14,267
30 Sep 22₹15,570

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 ₹385,859.
Net Profit of ₹85,859
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 4 Oct 22

DurationReturns
1 Month 1.8%
3 Month -2%
6 Month -0.7%
1 Year 9.3%
3 Year 8.4%
5 Year 9.9%
10 Year
15 Year
Since launch 3.3%
Historical performance (Yearly) on absolute basis
YearReturns
2021 -4%
2020 24.2%
2019 21.6%
2018 5.8%
2017 1.4%
2016 8.3%
2015 -8.7%
2014 0.2%
2013 -14.5%
2012
Fund Manager information for IDBI Gold Fund
NameSinceTenure
Khozem Jabalpurwala1 Jul 220.17 Yr.

Data below for IDBI Gold Fund as on 31 Aug 22

Asset Allocation
Asset ClassValue
Cash0.98%
Other99.02%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
IDBI Gold ETF
- | -
100%₹40 Cr85,488
↓ -235
Net Receivable / Payable
CBLO | -
0%₹0 Cr
Treps
CBLO/Reverse Repo | -
0%₹0 Cr

2. 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 4.1% since its launch.  Return for 2021 was -5.7% , 2020 was 27.4% and 2019 was 22.8% .

Below is the key information for SBI Gold Fund

SBI Gold Fund
Growth
Launch Date 12 Sep 11
NAV (04 Oct 22) ₹15.5841 ↑ 0.24   (1.59 %)
Net Assets (Cr) ₹1,163 on 31 Aug 22
Category Gold - Gold
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 0.4
Sharpe Ratio 0.37
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
30 Sep 17₹10,000
30 Sep 18₹10,043
30 Sep 19₹12,314
30 Sep 20₹16,391
30 Sep 21₹14,801
30 Sep 22₹16,003

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 ₹395,578.
Net Profit of ₹95,578
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 4 Oct 22

DurationReturns
1 Month 1.6%
3 Month -1.6%
6 Month -0.3%
1 Year 9.3%
3 Year 9.3%
5 Year 10.4%
10 Year
15 Year
Since launch 4.1%
Historical performance (Yearly) on absolute basis
YearReturns
2021 -5.7%
2020 27.4%
2019 22.8%
2018 6.4%
2017 3.5%
2016 10%
2015 -8.1%
2014 -10.2%
2013 -6.6%
2012 10.9%
Fund Manager information for SBI Gold Fund
NameSinceTenure
Raviprakash Sharma12 Sep 1110.98 Yr.

Data below for SBI Gold Fund as on 31 Aug 22

Asset Allocation
Asset ClassValue
Cash1.55%
Other98.45%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI Gold ETF
- | -
100%₹1,165 Cr258,975,789
↓ -2,742,977
Net Receivable / Payable
Net Current Assets | -
1%-₹6 Cr
Treps
CBLO/Reverse Repo | -
0%₹4 Cr

3. 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 4.4% since its launch.  Return for 2021 was -5.5% , 2020 was 27.5% and 2019 was 21.7% .

Below is the key information for HDFC Gold Fund

HDFC Gold Fund
Growth
Launch Date 24 Oct 11
NAV (04 Oct 22) ₹16.0069 ↑ 0.31   (1.96 %)
Net Assets (Cr) ₹1,359 on 31 Aug 22
Category Gold - Gold
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.57
Sharpe Ratio 0.38
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
30 Sep 17₹10,000
30 Sep 18₹10,071
30 Sep 19₹12,271
30 Sep 20₹16,369
30 Sep 21₹14,697
30 Sep 22₹15,904

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 ₹395,578.
Net Profit of ₹95,578
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 4 Oct 22

DurationReturns
1 Month 1.4%
3 Month -1.6%
6 Month -1%
1 Year 9.2%
3 Year 9.1%
5 Year 10.3%
10 Year
15 Year
Since launch 4.4%
Historical performance (Yearly) on absolute basis
YearReturns
2021 -5.5%
2020 27.5%
2019 21.7%
2018 6.6%
2017 2.8%
2016 10.1%
2015 -7.3%
2014 -9.8%
2013 -7.2%
2012 12%
Fund Manager information for HDFC Gold Fund
NameSinceTenure
Krishan Daga19 Oct 156.87 Yr.

Data below for HDFC Gold Fund as on 31 Aug 22

Asset Allocation
Asset ClassValue
Cash2.18%
Other97.82%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Gold ETF
- | -
100%₹1,358 Cr300,840,000
↓ -1,320,000
Net Current Assets
Net Current Assets | -
0%-₹2 Cr
Reverse Repo
CBLO/Reverse Repo | -
0%₹2 Cr
Treps - Tri-Party Repo
CBLO/Reverse Repo | -
0%₹1 Cr

4. Axis Gold Fund

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

Axis Gold Fund is a Gold - Gold fund was launched on 20 Oct 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 4.1% since its launch.  Return for 2021 was -4.7% , 2020 was 26.9% and 2019 was 23.1% .

Below is the key information for Axis Gold Fund

Axis Gold Fund
Growth
Launch Date 20 Oct 11
NAV (04 Oct 22) ₹15.5932 ↑ 0.27   (1.75 %)
Net Assets (Cr) ₹263 on 31 Aug 22
Category Gold - Gold
AMC Axis Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.3
Sharpe Ratio 0.39
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.

DateValue
30 Sep 17₹10,000
30 Sep 18₹10,208
30 Sep 19₹12,470
30 Sep 20₹16,624
30 Sep 21₹15,081
30 Sep 22₹16,320

Axis 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 ₹405,518.
Net Profit of ₹105,518
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 4 Oct 22

DurationReturns
1 Month 1%
3 Month -1.8%
6 Month 0%
1 Year 9.2%
3 Year 9.6%
5 Year 11.1%
10 Year
15 Year
Since launch 4.1%
Historical performance (Yearly) on absolute basis
YearReturns
2021 -4.7%
2020 26.9%
2019 23.1%
2018 8.3%
2017 0.7%
2016 10.7%
2015 -11.9%
2014 -11.4%
2013 -7.5%
2012 10.9%
Fund Manager information for Axis Gold Fund
NameSinceTenure
Aditya Pagaria9 Nov 210.81 Yr.

Data below for Axis Gold Fund as on 31 Aug 22

Asset Allocation
Asset ClassValue
Cash3.03%
Other96.97%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Axis Gold ETF
- | -
99%₹260 Cr59,300,000
↑ 200,000
Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -
1%₹3 Cr
Net Receivables / (Payables)
Net Current Assets | -
0%-₹1 Cr

5. 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 4.7% since its launch.  Return for 2021 was -5.4% , 2020 was 26.6% and 2019 was 22.7% .

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 (04 Oct 22) ₹16.5398 ↑ 0.27   (1.69 %)
Net Assets (Cr) ₹696 on 31 Aug 22
Category Gold - Gold
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.33
Sharpe Ratio 0.43
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
30 Sep 17₹10,000
30 Sep 18₹10,232
30 Sep 19₹12,430
30 Sep 20₹16,396
30 Sep 21₹14,813
30 Sep 22₹15,992

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 ₹395,578.
Net Profit of ₹95,578
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 4 Oct 22

DurationReturns
1 Month 1.2%
3 Month -1.5%
6 Month -0.8%
1 Year 9%
3 Year 9.1%
5 Year 10.3%
10 Year
15 Year
Since launch 4.7%
Historical performance (Yearly) on absolute basis
YearReturns
2021 -5.4%
2020 26.6%
2019 22.7%
2018 7.4%
2017 0.8%
2016 8.9%
2015 -5.1%
2014 -9.2%
2013 -6.7%
2012 11.2%
Fund Manager information for ICICI Prudential Regular Gold Savings Fund
NameSinceTenure
Manish Banthia27 Sep 129.93 Yr.
Nishit Patel29 Dec 201.67 Yr.

Data below for ICICI Prudential Regular Gold Savings Fund as on 31 Aug 22

Asset Allocation
Asset ClassValue
Cash2.12%
Other97.88%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Pru Gold ETF
- | -
100%₹696 Cr154,205,847
↑ 1,590,110
Net Current Assets
Net Current Assets | -
0%-₹3 Cr
Treps
CBLO/Reverse Repo | -
0%₹3 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.
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