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Fincash » Mutual Funds » E-Gold Vs Gold ETFs

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

Updated on January 23, 2020 , 1828 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 2020

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

1. Kotak Gold Fund

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

Kotak Gold Fund is a Gold - Gold fund was launched on 25 Mar 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 5.9% since its launch.  Return for 2019 was 24.1% , 2018 was 7.3% and 2017 was 2.5% .

Below is the key information for Kotak Gold Fund

Kotak Gold Fund
Growth
Launch Date 25 Mar 11
NAV (24 Jan 20) ₹16.6619 ↑ 0.04   (0.22 %)
Net Assets (Cr) ₹205 on 31 Dec 19
Category Gold - Gold
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.6
Sharpe Ratio 1.35
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.

DateValue
31 Dec 14₹10,000
31 Dec 15₹9,162
31 Dec 16₹10,098
31 Dec 17₹10,349
31 Dec 18₹11,100
31 Dec 19₹13,774

Kotak 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 ₹357,992.
Net Profit of ₹57,992
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 24 Jan 20

DurationReturns
1 Month 4.1%
3 Month 3.3%
6 Month 15.3%
1 Year 24.4%
3 Year 10.5%
5 Year 6%
10 Year
15 Year
Since launch 5.9%
Historical performance (Yearly) on absolute basis
YearReturns
2018 24.1%
2017 7.3%
2016 2.5%
2015 10.2%
2014 -8.4%
2013 -10%
2012 -7.7%
2011 10.9%
2010
2009
Fund Manager information for Kotak Gold Fund
NameSinceTenure
Abhishek Bisen25 Mar 118.69 Yr.

Data below for Kotak Gold Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash2.28%
Other97.72%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Kotak Gold ETF
- | KOTAKGOLDE
98%₹190 Cr5,687,375
↑ 122,885
Triparty Repo
CBLO/Reverse Repo | -
2%₹3 Cr
Net Current Assets/(Liabilities)
Net Current Assets | -
0%₹1 Cr

2. 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 5.9% since its launch.  Return for 2019 was 22.5% , 2018 was 6% and 2017 was 1.7% .

Below is the key information for Nippon India Gold Savings Fund

Nippon India Gold Savings Fund
Growth
Launch Date 7 Mar 11
NAV (24 Jan 20) ₹16.6644 ↑ 0.09   (0.54 %)
Net Assets (Cr) ₹755 on 31 Dec 19
Category Gold - Gold
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately High
Expense Ratio 0.63
Sharpe Ratio 1.29
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 Dec 14₹10,000
31 Dec 15₹9,187
31 Dec 16₹10,257
31 Dec 17₹10,436
31 Dec 18₹11,059
31 Dec 19₹13,544

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 ₹349,120.
Net Profit of ₹49,120
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 24 Jan 20

DurationReturns
1 Month 4.9%
3 Month 5%
6 Month 14.7%
1 Year 23.4%
3 Year 9.3%
5 Year 5.8%
10 Year
15 Year
Since launch 5.9%
Historical performance (Yearly) on absolute basis
YearReturns
2018 22.5%
2017 6%
2016 1.7%
2015 11.6%
2014 -8.1%
2013 -9.8%
2012 -7.6%
2011 11.2%
2010
2009
Fund Manager information for Nippon India Gold Savings Fund
NameSinceTenure
Mehul Dama6 Nov 181.15 Yr.

Data below for Nippon India Gold Savings Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash0.42%
Other99.58%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nippon India ETF Gold BeES
- | GOLDBEES
100%₹734 Cr2,196,058
Reverse Repo
CBLO/Reverse Repo | -
0%₹3 Cr
Net Current Assets
Net Current Assets | -
0%-₹2 Cr
Cash Margin - Ccil
Receivables | -
0%₹0 Cr

3. 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 2.7% since its launch.  Return for 2019 was 23.1% , 2018 was 8.3% and 2017 was 0.7% .

Below is the key information for Axis Gold Fund

Axis Gold Fund
Growth
Launch Date 20 Oct 11
NAV (24 Jan 20) ₹12.4298 ↓ 0.00   (-0.02 %)
Net Assets (Cr) ₹58 on 31 Dec 19
Category Gold - Gold
AMC Axis Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.72
Sharpe Ratio 1.29
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
31 Dec 14₹10,000
31 Dec 15₹8,814
31 Dec 16₹9,757
31 Dec 17₹9,826
31 Dec 18₹10,642
31 Dec 19₹13,096

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 ₹340,450.
Net Profit of ₹40,450
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 24 Jan 20

DurationReturns
1 Month 3.9%
3 Month 4.5%
6 Month 14.1%
1 Year 23.4%
3 Year 9.6%
5 Year 4.9%
10 Year
15 Year
Since launch 2.7%
Historical performance (Yearly) on absolute basis
YearReturns
2018 23.1%
2017 8.3%
2016 0.7%
2015 10.7%
2014 -11.9%
2013 -11.4%
2012 -7.5%
2011 10.9%
2010
2009
Fund Manager information for Axis Gold Fund
NameSinceTenure
Devang Shah7 Jun 163.48 Yr.

Data below for Axis Gold Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash3.32%
Other96.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Axis Gold ETF
- | AXISGOLDEQ
98%₹55 Cr164,000
Clearing Corporation Of India Ltd
CBLO | -
3%₹1 Cr
Net Receivables / (Payables)
Net Current Assets | -
0%₹0 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).

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 2.7% since its launch.  Return for 2019 was 22.8% , 2018 was 6.4% and 2017 was 3.5% .

Below is the key information for SBI Gold Fund

SBI Gold Fund
Growth
Launch Date 12 Sep 11
NAV (24 Jan 20) ₹12.5311 ↑ 0.00   (0.00 %)
Net Assets (Cr) ₹397 on 31 Dec 19
Category Gold - Gold
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 0.43
Sharpe Ratio 1.33
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 Dec 14₹10,000
31 Dec 15₹9,186
31 Dec 16₹10,104
31 Dec 17₹10,456
31 Dec 18₹11,128
31 Dec 19₹13,668

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 ₹349,120.
Net Profit of ₹49,120
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 24 Jan 20

DurationReturns
1 Month 4.3%
3 Month 4.2%
6 Month 14.8%
1 Year 23.2%
3 Year 9.9%
5 Year 5.9%
10 Year
15 Year
Since launch 2.7%
Historical performance (Yearly) on absolute basis
YearReturns
2018 22.8%
2017 6.4%
2016 3.5%
2015 10%
2014 -8.1%
2013 -10.2%
2012 -6.6%
2011 10.9%
2010
2009
Fund Manager information for SBI Gold Fund
NameSinceTenure
Raviprakash Sharma12 Sep 118.22 Yr.

Data below for SBI Gold Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash0.05%
Other99.95%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI ETF Gold
- | SETFGOLD
100%₹384 Cr1,123,142
↑ 5,920
Treps
CBLO/Reverse Repo | -
0%₹1 Cr
Net Receivable / Payable
Net Current Assets | -
0%-₹1 Cr

5. Aditya Birla Sun Life Gold Fund

An Open ended Fund of Funds Scheme with the investment objective to provide returns that tracks returns provided by Birla Sun Life Gold ETF (BSL Gold ETF).

Aditya Birla Sun Life Gold Fund is a Gold - Gold fund was launched on 20 Mar 12. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 2.9% since its launch.  Return for 2019 was 21.3% , 2018 was 6.8% and 2017 was 1.6% .

Below is the key information for Aditya Birla Sun Life Gold Fund

Aditya Birla Sun Life Gold Fund
Growth
Launch Date 20 Mar 12
NAV (24 Jan 20) ₹12.5581 ↓ -0.12   (-0.91 %)
Net Assets (Cr) ₹76 on 31 Dec 19
Category Gold - Gold
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.5
Sharpe Ratio 1.27
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-365 Days (1%),365 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹9,278
31 Dec 16₹10,346
31 Dec 17₹10,511
31 Dec 18₹11,229
31 Dec 19₹13,625

Aditya Birla Sun Life 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 ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for Aditya Birla Sun Life 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 24 Jan 20

DurationReturns
1 Month 3.9%
3 Month 3.4%
6 Month 12.6%
1 Year 23%
3 Year 8.7%
5 Year 5.9%
10 Year
15 Year
Since launch 2.9%
Historical performance (Yearly) on absolute basis
YearReturns
2018 21.3%
2017 6.8%
2016 1.6%
2015 11.5%
2014 -7.2%
2013 -9.4%
2012 -6.9%
2011
2010
2009
Fund Manager information for Aditya Birla Sun Life Gold Fund
NameSinceTenure
Lovelish Solanki30 Jun 180.59 Yr.

Data below for Aditya Birla Sun Life Gold Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash3.22%
Other96.78%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Aditya BSL Gold ETF
- | 533408
97%₹71 Cr203,000
Clearing Corporation Of India Limited
CBLO | -
3%₹2 Cr
Net Receivables / (Payables)
Net Current Assets | -
0%₹0 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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