Table of Contents
E-Gold Vs Gold ETFs- Which is a Better Option?
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.
Talk to our investment specialist
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:
To provide returns that closely corresponds to returns provided by Invesco India Gold Exchange Traded Fund. Invesco India Gold Fund is a Gold - Gold fund was launched on 5 Dec 11. It is a fund with Moderately High risk and has given a Below is the key information for Invesco India Gold Fund Returns up to 1 year are on 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 Below is the key information for HDFC Gold Fund Returns up to 1 year are on 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 Below is the key information for SBI Gold Fund Returns up to 1 year are on 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 Below is the key information for Kotak Gold Fund Returns up to 1 year are on 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 Below is the key information for Nippon India Gold Savings Fund Returns up to 1 year are on 1. Invesco India Gold Fund
CAGR/Annualized return of 4.9% since its launch. Return for 2019 was 21.4% , 2018 was 6.6% and 2017 was 1.3% . Invesco India Gold Fund
Growth Launch Date 5 Dec 11 NAV (25 Sep 20) ₹15.1953 ↑ 0.14 (0.94 %) Net Assets (Cr) ₹45 on 31 Aug 20 Category Gold - Gold AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.49 Sharpe Ratio 1.56 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 Aug 15 ₹10,000 31 Aug 16 ₹11,592 31 Aug 17 ₹10,920 31 Aug 18 ₹11,193 31 Aug 19 ₹13,857 31 Aug 20 ₹18,557 Returns for Invesco India Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20 Duration Returns 1 Month -2.6% 3 Month 3.4% 6 Month 20.9% 1 Year 31.3% 3 Year 17.7% 5 Year 12.6% 10 Year 15 Year Since launch 4.9% Historical performance (Yearly) on absolute basis
Year Returns 2019 21.4% 2018 6.6% 2017 1.3% 2016 21.6% 2015 -15.1% 2014 -9% 2013 -7.6% 2012 11.3% 2011 2010 Fund Manager information for Invesco India Gold Fund
Name Since Tenure Krishna Cheemalapati 4 Jan 20 0.66 Yr. Data below for Invesco India Gold Fund as on 31 Aug 20
Asset Allocation
Asset Class Value Cash 2.62% Other 97.38% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Gold ETF
- | IVZINGOLD98% ₹44 Cr 94,468
↑ 10,820 Triparty Repo
CBLO/Reverse Repo | -3% ₹1 Cr Net Receivables / (Payables)
Net Current Assets | -1% ₹0 Cr 2. HDFC Gold Fund
CAGR/Annualized return of 5.5% since its launch. Return for 2019 was 21.7% , 2018 was 6.6% and 2017 was 2.8% . HDFC Gold Fund
Growth Launch Date 24 Oct 11 NAV (25 Sep 20) ₹16.0596 ↓ -0.01 (-0.04 %) Net Assets (Cr) ₹905 on 31 Aug 20 Category Gold - Gold AMC HDFC Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.5 Sharpe Ratio 1.57 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 Aug 15 ₹10,000 31 Aug 16 ₹11,508 31 Aug 17 ₹10,788 31 Aug 18 ₹10,961 31 Aug 19 ₹13,703 31 Aug 20 ₹18,327 Returns for HDFC Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20 Duration Returns 1 Month -2.5% 3 Month 3.8% 6 Month 12.4% 1 Year 31.1% 3 Year 17.6% 5 Year 12.3% 10 Year 15 Year Since launch 5.5% Historical performance (Yearly) on absolute basis
Year Returns 2019 21.7% 2018 6.6% 2017 2.8% 2016 10.1% 2015 -7.3% 2014 -9.8% 2013 -7.2% 2012 12% 2011 2010 Fund Manager information for HDFC Gold Fund
Name Since Tenure Krishan Daga 19 Oct 15 4.87 Yr. Data below for HDFC Gold Fund as on 31 Aug 20
Asset Allocation
Asset Class Value Cash 1.5% Other 98.5% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Gold ETF
- | HDFCMFGETF100% ₹904 Cr 1,944,003
↑ 215,503 Treps - Tri-Party Repo
CBLO/Reverse Repo | -0% ₹4 Cr Net Current Assets
Net Current Assets | -0% -₹3 Cr 3. SBI Gold Fund
CAGR/Annualized return of 5% since its launch. Return for 2019 was 22.8% , 2018 was 6.4% and 2017 was 3.5% . SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (25 Sep 20) ₹15.53 ↑ 0.09 (0.59 %) Net Assets (Cr) ₹804 on 31 Aug 20 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.43 Sharpe Ratio 1.68 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 Aug 15 ₹10,000 31 Aug 16 ₹11,527 31 Aug 17 ₹10,816 31 Aug 18 ₹10,930 31 Aug 19 ₹13,687 31 Aug 20 ₹18,254 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20 Duration Returns 1 Month -2.8% 3 Month 3% 6 Month 13.8% 1 Year 30.8% 3 Year 17.5% 5 Year 12.1% 10 Year 15 Year Since launch 5% Historical performance (Yearly) on absolute basis
Year Returns 2019 22.8% 2018 6.4% 2017 3.5% 2016 10% 2015 -8.1% 2014 -10.2% 2013 -6.6% 2012 10.9% 2011 2010 Fund Manager information for SBI Gold Fund
Name Since Tenure Raviprakash Sharma 12 Sep 11 8.98 Yr. Data below for SBI Gold Fund as on 31 Aug 20
Asset Allocation
Asset Class Value Cash 0.45% Other 99.55% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI ETF Gold
- | SETFGOLD100% ₹804 Cr 1,734,290
↑ 153,750 Treps
CBLO/Reverse Repo | -1% ₹5 Cr Net Receivable / Payable
CBLO | -1% -₹5 Cr 4. Kotak Gold Fund
CAGR/Annualized return of 8% since its launch. Return for 2019 was 24.1% , 2018 was 7.3% and 2017 was 2.5% . Kotak Gold Fund
Growth Launch Date 25 Mar 11 NAV (25 Sep 20) ₹20.745 ↑ 0.20 (0.99 %) Net Assets (Cr) ₹701 on 31 Aug 20 Category Gold - Gold AMC Kotak Mahindra Asset Management Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.56 Sharpe Ratio 1.62 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 Aug 15 ₹10,000 31 Aug 16 ₹11,494 31 Aug 17 ₹10,721 31 Aug 18 ₹10,968 31 Aug 19 ₹13,920 31 Aug 20 ₹18,470 Returns for Kotak Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20 Duration Returns 1 Month -2.5% 3 Month 3.8% 6 Month 18.9% 1 Year 30.5% 3 Year 18.2% 5 Year 12.5% 10 Year 15 Year Since launch 8% Historical performance (Yearly) on absolute basis
Year Returns 2019 24.1% 2018 7.3% 2017 2.5% 2016 10.2% 2015 -8.4% 2014 -10% 2013 -7.7% 2012 10.9% 2011 2010 Fund Manager information for Kotak Gold Fund
Name Since Tenure Abhishek Bisen 25 Mar 11 9.45 Yr. Data below for Kotak Gold Fund as on 31 Aug 20
Asset Allocation
Asset Class Value Cash 2.99% Other 97.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Gold ETF
- | KOTAKGOLDE98% ₹690 Cr 15,189,769
↑ 1,819,484 Triparty Repo
CBLO/Reverse Repo | -2% ₹12 Cr Net Current Assets/(Liabilities)
Net Current Assets | -0% -₹1 Cr 5. Nippon India Gold Savings Fund
CAGR/Annualized return of 7.8% since its launch. Return for 2019 was 22.5% , 2018 was 6% and 2017 was 1.7% . Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (25 Sep 20) ₹20.5007 ↑ 0.12 (0.60 %) Net Assets (Cr) ₹1,270 on 31 Aug 20 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.63 Sharpe Ratio 1.5 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.
Date Value 31 Aug 15 ₹10,000 31 Aug 16 ₹11,419 31 Aug 17 ₹10,747 31 Aug 18 ₹10,891 31 Aug 19 ₹13,539 31 Aug 20 ₹18,114 Returns for Nippon India Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20 Duration Returns 1 Month -2.9% 3 Month 3% 6 Month 17.7% 1 Year 30.5% 3 Year 17.1% 5 Year 11.9% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2019 22.5% 2018 6% 2017 1.7% 2016 11.6% 2015 -8.1% 2014 -9.8% 2013 -7.6% 2012 11.2% 2011 2010 Fund Manager information for Nippon India Gold Savings Fund
Name Since Tenure Mehul Dama 6 Nov 18 1.82 Yr. Data below for Nippon India Gold Savings Fund as on 31 Aug 20
Asset Allocation
Asset Class Value Cash 0.69% Other 99.31% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | GOLDBEES100% ₹1,269 Cr 279,842,235
↑ 23,950,000 Triparty Repo
CBLO/Reverse Repo | -1% ₹7 Cr Net Current Assets
Net Current Assets | -0% -₹6 Cr Cash Margin - Ccil
Net Current Assets | -0% ₹0 Cr
How to Invest in Gold Mutual Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
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.
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2020 Shepard Technologies Private Limited. All Rights Reserved