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

Updated on August 18, 2025 , 30231 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. 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).

Research Highlights for Aditya Birla Sun Life Gold Fund

  • Bottom quartile AUM (₹663 Cr).
  • Established history (13+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 12.05% (lower mid).
  • 3Y return: 22.44% (bottom quartile).
  • 1Y return: 35.26% (top quartile).
  • 1M return: 0.18% (bottom quartile).
  • Alpha: 0.00 (top quartile).
  • Sharpe: 2.62 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Top bond sector: Cash Equivalent.
  • Largest holding Aditya BSL Gold ETF (~100.0%).
  • Top-3 holdings concentration ~100.6%.

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 (20 Aug 25) ₹28.7485 ↓ -0.10   (-0.34 %)
Net Assets (Cr) ₹663 on 31 Jul 25
Category Gold - Gold
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.51
Sharpe Ratio 2.62
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load 0-365 Days (1%),365 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹8,893
31 Jul 22₹9,380
31 Jul 23₹10,712
31 Jul 24₹12,357
31 Jul 25₹17,250

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 ₹415,684.
Net Profit of ₹115,684
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 20 Aug 25

DurationReturns
1 Month 0.2%
3 Month 5%
6 Month 13%
1 Year 35.3%
3 Year 22.4%
5 Year 12%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
2024 18.7%
2023 14.5%
2022 12.3%
2021 -5%
2020 26%
2019 21.3%
2018 6.8%
2017 1.6%
2016 11.5%
2015 -7.2%
Fund Manager information for Aditya Birla Sun Life Gold Fund
NameSinceTenure
Priya Sridhar31 Dec 240.58 Yr.

Data below for Aditya Birla Sun Life Gold Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash1.51%
Other98.49%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Aditya BSL Gold ETF
- | -
100%₹636 Cr75,025,724
↑ 2,384,690
Net Receivables / (Payables)
Net Current Assets | -
0%-₹2 Cr
Clearing Corporation Of India Limited
CBLO/Reverse Repo | -
0%₹2 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).

Research Highlights for IDBI Gold Fund

  • Bottom quartile AUM (₹214 Cr).
  • Established history (13+ yrs).
  • Not Rated.
  • Risk profile: Moderately High.
  • 5Y return: 11.82% (bottom quartile).
  • 3Y return: 22.61% (upper mid).
  • 1Y return: 35.21% (upper mid).
  • 1M return: 0.53% (top quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 2.25 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Top bond sector: Cash Equivalent.
  • Largest holding LIC MF Gold ETF (~99.9%).
  • Top-3 holdings concentration ~105.8%.

Below is the key information for IDBI Gold Fund

IDBI Gold Fund
Growth
Launch Date 14 Aug 12
NAV (20 Aug 25) ₹25.7958 ↓ -0.18   (-0.70 %)
Net Assets (Cr) ₹214 on 31 Jul 25
Category Gold - Gold
AMC IDBI Asset Management Limited
Rating Not Rated
Risk Moderately High
Expense Ratio 0.64
Sharpe Ratio 2.25
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 Jul 20₹10,000
31 Jul 21₹8,555
31 Jul 22₹8,924
31 Jul 23₹10,298
31 Jul 24₹12,071
31 Jul 25₹16,640

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 ₹405,518.
Net Profit of ₹105,518
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 20 Aug 25

DurationReturns
1 Month 0.5%
3 Month 4.9%
6 Month 12.8%
1 Year 35.2%
3 Year 22.6%
5 Year 11.8%
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 241.17 Yr.

Data below for IDBI Gold Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash0.85%
Other99.15%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
LIC MF Gold ETF
- | -
100%₹174 Cr199,194
↑ 27,875
Treps
CBLO/Reverse Repo | -
3%₹5 Cr
Net Receivables / (Payables)
Net Current Assets | -
3%-₹5 Cr

3. HDFC Gold Fund

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

Research Highlights for HDFC Gold Fund

  • Upper mid AUM (₹4,537 Cr).
  • Established history (13+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 12.06% (upper mid).
  • 3Y return: 22.45% (lower mid).
  • 1Y return: 34.96% (lower mid).
  • 1M return: 0.41% (upper mid).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 2.50 (lower mid).
  • Information ratio: 0.00 (lower mid).
  • Top bond sector: Cash Equivalent.
  • Largest holding HDFC Gold ETF (~100.2%).
  • Top-3 holdings concentration ~100.7%.

Below is the key information for HDFC Gold Fund

HDFC Gold Fund
Growth
Launch Date 24 Oct 11
NAV (20 Aug 25) ₹29.5916 ↓ -0.08   (-0.28 %)
Net Assets (Cr) ₹4,537 on 31 Jul 25
Category Gold - Gold
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.49
Sharpe Ratio 2.5
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 Jul 20₹10,000
31 Jul 21₹8,862
31 Jul 22₹9,268
31 Jul 23₹10,643
31 Jul 24₹12,372
31 Jul 25₹17,156

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 ₹415,684.
Net Profit of ₹115,684
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 20 Aug 25

DurationReturns
1 Month 0.4%
3 Month 5.1%
6 Month 13%
1 Year 35%
3 Year 22.5%
5 Year 12.1%
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 232.46 Yr.
Nandita Menezes29 Mar 250.34 Yr.

Data below for HDFC Gold Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash1.39%
Other98.61%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Gold ETF
- | -
100%₹4,280 Cr518,569,445
↑ 21,282,499
Net Current Assets
Net Current Assets | -
0%-₹14 Cr
Treps - Tri-Party Repo
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 (₹4,740 Cr).
  • Established history (13+ yrs).
  • Rating: 2★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 12.20% (top quartile).
  • 3Y return: 22.66% (top quartile).
  • 1Y return: 34.92% (bottom quartile).
  • 1M return: 0.34% (bottom quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 2.53 (upper mid).
  • Information ratio: 0.00 (bottom quartile).
  • Top bond sector: Cash Equivalent.
  • Largest holding SBI Gold ETF (~100.2%).
  • Top-3 holdings concentration ~101.2%.

Below is the key information for SBI Gold Fund

SBI Gold Fund
Growth
Launch Date 12 Sep 11
NAV (20 Aug 25) ₹28.9489 ↓ -0.08   (-0.26 %)
Net Assets (Cr) ₹4,740 on 31 Jul 25
Category Gold - Gold
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 0.3
Sharpe Ratio 2.53
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 Jul 20₹10,000
31 Jul 21₹8,893
31 Jul 22₹9,337
31 Jul 23₹10,723
31 Jul 24₹12,421
31 Jul 25₹17,329

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 ₹415,684.
Net Profit of ₹115,684
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 20 Aug 25

DurationReturns
1 Month 0.3%
3 Month 4.9%
6 Month 13%
1 Year 34.9%
3 Year 22.7%
5 Year 12.2%
10 Year
15 Year
Since launch 7.9%
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
Raviprakash Sharma12 Sep 1113.89 Yr.

Data below for SBI Gold Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash1.19%
Other98.81%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI Gold ETF
- | -
100%₹4,419 Cr536,211,834
↑ 29,700,000
Net Receivable / Payable
CBLO | -
1%-₹27 Cr
Treps
CBLO/Reverse Repo | -
0%₹17 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.

Research Highlights for Nippon India Gold Savings Fund

  • Lower mid AUM (₹3,248 Cr).
  • Oldest track record among peers (14 yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 12.02% (bottom quartile).
  • 3Y return: 22.28% (bottom quartile).
  • 1Y return: 34.81% (bottom quartile).
  • 1M return: 0.40% (lower mid).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 2.48 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Top bond sector: Cash Equivalent.
  • Largest holding Nippon India ETF Gold BeES (~100.1%).
  • Top-3 holdings concentration ~100.8%.

Below is the key information for Nippon India Gold Savings Fund

Nippon India Gold Savings Fund
Growth
Launch Date 7 Mar 11
NAV (20 Aug 25) ₹37.888 ↓ -0.11   (-0.28 %)
Net Assets (Cr) ₹3,248 on 31 Jul 25
Category Gold - Gold
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately High
Expense Ratio 0.35
Sharpe Ratio 2.48
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 Jul 20₹10,000
31 Jul 21₹8,864
31 Jul 22₹9,276
31 Jul 23₹10,629
31 Jul 24₹12,270
31 Jul 25₹17,126

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 ₹415,684.
Net Profit of ₹115,684
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 20 Aug 25

DurationReturns
1 Month 0.4%
3 Month 4.9%
6 Month 13%
1 Year 34.8%
3 Year 22.3%
5 Year 12%
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 231.61 Yr.

Data below for Nippon India Gold Savings Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash1.38%
Other98.62%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nippon India ETF Gold BeES
- | -
100%₹3,128 Cr391,081,739
↑ 8,330,000
Net Current Assets
Net Current Assets | -
0%-₹12 Cr
Triparty Repo
CBLO/Reverse Repo | -
0%₹10 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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