If you want gold exposure without lockers, purity worries, or making charges, Gold ETFs are the simplest route. This guide ranks the best Gold ETFs in India by expense ratio, liquidity, tracking accuracy, and AUM, and shows you which ones work best for a monthly SIP versus a long-term buy-and-hold strategy.
What Is a Gold ETF?
A Gold ETF is an open-ended mutual fund that holds physical 24-karat, 99.5% pure gold in secure vaults. Each unit usually represents about one gram of gold, and you buy or sell units on the NSE or BSE just like a stock, through your demat account.
Because the fund tracks domestic gold prices, you get gold’s price movement without storage risk, insurance costs, or the 10-25% making charges that jewellery carries.
Quick reasons investors choose Gold ETFs over physical gold:
- No GST at purchase (physical gold attracts 3% GST)
- No storage or locker costs
- Guaranteed 99.5% purity, no resale purity disputes
- Highly liquid, tradeable during market hours
- Can be pledged as loan collateral
Top 10 Gold ETFs in India (2026)
The table below compares the most popular Gold ETFs on the metrics that actually matter to retail investors: cost, size, and liquidity. Figures are approximate and change often, so always check the AMC’s latest factsheet or your broker app before investing.
| Gold ETF | Expense Ratio | AUM (approx.) | Best Known For |
| Nippon India ETF Gold BeES | ~0.80% | Largest in India (₹35,000+ crore) | Highest trading volume and largest AUM, making it the most liquid option for quick entry and exit |
| SBI Gold ETF | ~0.65-0.70% | Among the top 3 by size | Strong balance of liquidity, size, and cost |
| ICICI Prudential Gold ETF | ~0.50% | Mid-large | Lowest expense ratio among major funds and strong long-term performance |
| Kotak Gold ETF | ~0.55% | Mid-large | Low minimum investment, making it accessible for beginners starting small |
| HDFC Gold ETF | ~0.55-0.59% | Mid-large | Lowest tracking error among major funds, closely mirroring gold price moves |
| UTI Gold ETF | Low-moderate | Mid-size | Very low tracking error, suited to investors prioritising accuracy over trading volume |
| Axis Gold ETF | Low-moderate | Mid-size | Long track record, steady tracking |
| Aditya Birla Sun Life Gold ETF | Low-moderate | Smaller | Backed by an established fund house |
| Invesco India Gold ETF | Low-moderate | Smaller | Niche option, lower liquidity |
| Zerodha Gold ETF | Low (cost-focused) | Newer, smaller | One of the lowest expense ratios in the category, appealing to cost-conscious long-term investors |
Don’t have a demat account? You can still get gold exposure through Gold Fund of Funds (FoFs) such as Nippon India Gold Savings Fund or ICICI Prudential Regular Gold Savings Fund, which invest in the underlying Gold ETF and let you start a SIP through a regular mutual fund folio. The trade-off is a slightly higher total cost because you pay the FoF’s own charges on top of the ETF’s expense ratio.
Best Gold ETFs for SIP
A gold SIP works well if you want to build a steady allocation over time instead of timing your entry. Since Gold ETFs need a demat account to trade, consistent monthly SIPs work best through:
- Kotak Gold ETF – Entry is possible with a very small unit size, making it useful for micro-SIPs.
- Nippon India ETF Gold BeES – High liquidity means your SIP order fills quickly at a fair price, even during volatile sessions.
- ICICI Prudential Gold ETF – Low expense ratio keeps more of your SIP returns intact over 10-15 years.
- Gold FoFs (Nippon India Gold Savings Fund, ICICI Prudential Regular Gold Savings Fund) – Best if you don’t have a demat account and want auto-debit SIPs like a regular mutual fund.
Rule of thumb: for SIPs, a slightly higher expense ratio matters less than for lump-sum investing, since you’re averaging your purchase price across many months anyway. Prioritise convenience and a fund house you trust.
Best Gold ETFs for Long-Term Investment
For a 5-10 year or longer horizon, cost efficiency compounds and becomes the biggest differentiator, since all Gold ETFs hold the same underlying asset.
- ICICI Prudential Gold ETF and Kotak Gold ETF stand out for long-term holding because of their lower total expense ratios, which matter more the longer you stay invested since even a small annual cost difference compounds significantly over a decade or two.
- UTI Gold ETF and HDFC Gold ETF are worth considering if tracking accuracy (how closely the fund mirrors actual gold prices) matters more to you than trading volume.
- Nippon India ETF Gold BeES remains a solid long-term pick too, given its scale and stability, even though its expense ratio is on the higher side.
As a broad allocation guideline, most financial planners suggest keeping gold, across ETFs, FoFs, or bonds, to around 5 to 10% of your overall portfolio for diversification and as an inflation hedge, rather than as your primary wealth-building asset.
How to Choose the Best Gold ETF: 4 Factors That Matter
- Expense ratio (TER): This is deducted annually from your returns. Anything under 0.60% is considered efficient for a passive gold fund; above 0.80% is on the expensive side.
- Tracking error: Measures how closely the ETF’s NAV follows actual gold prices. Lower is better; look for funds with a tracking error under 0.15%.
- AUM and liquidity: Larger, more actively traded ETFs have tighter bid-ask spreads, so you lose less on entry and exit, especially for large lump-sum trades.
- Fund house track record: A longer operating history (10+ years) generally means more stable fund management and processes.
Gold ETF Taxation in India (FY 2025-26 Rules)
Gold ETF taxation changed after the Finance Act 2024, and the current rules are:
| Holding Period | Classification | Tax Rate |
| 12 months or less | Short-Term Capital Gains (STCG) | Taxed at your income tax slab rate |
| More than 12 months | Long-Term Capital Gains (LTCG) | Flat 12.5% tax, without any indexation benefit |
A few important points:
- Securities Transaction Tax (STT) does not apply to gold ETF transactions, since it only applies to equity-oriented funds.
- The ₹1.25 lakh annual LTCG exemption available for equity investments does not apply to Gold ETFs.
- No GST applies when you buy or sell gold ETF units, unlike physical gold, which attracts 3% GST at purchase.
- Losses can be carried forward for up to 8 assessment years if you file your ITR on time.
Gold ETF vs Physical Gold vs Sovereign Gold Bonds
| Feature | Gold ETF | Physical Gold | Sovereign Gold Bonds |
| Purity | 99.5%, guaranteed | Variable, purity disputes possible | Backed by government |
| Storage | Demat, no physical risk | Locker/home, risk of theft | Demat or paper form |
| GST | None | 3% at purchase | None |
| Liquidity | High, exchange-traded | Depends on jeweller | Lower, longer lock-in |
| New issuance | Available anytime | Available anytime | Currently not being issued |
Read More: How to Invest in Gold: Best Way to investment Gold
Final Thoughts
Gold ETFs remain one of the most practical ways for Indian investors to hold gold in 2026, combining low cost, high liquidity, and guaranteed purity. For SIPs, prioritise convenience and a trusted fund house; for long-term lump-sum investing, prioritise a low expense ratio and tight tracking error. Whichever fund you pick, treat gold as a diversification tool, ideally 5-10% of your portfolio, rather than your main investment strategy.
Read More: Why Consider Gold as an Investment in 2026?
Frequently Asked Questions (FAQs)
Which is the best Gold ETF in India right now?
There’s no single “best” fund for everyone. Nippon India ETF Gold BeES leads on liquidity and size, ICICI Prudential Gold ETF leads on low cost, and HDFC or UTI Gold ETF leads on tracking accuracy. Match the fund to what matters most for your goal.
Can I do a SIP in a Gold ETF?
Yes, most brokers let you set up a recurring SIP order in any Gold ETF through your demat account. If you don’t have one, a Gold Fund of Funds offers SIP investing without a demat.
How much of my portfolio should be in gold?
Most advisors suggest allocating 5-10% of your total portfolio, primarily for diversification rather than as a core growth asset.
Are Gold ETFs better than Sovereign Gold Bonds?
Gold ETFs offer better liquidity and no lock-in, while SGBs (when available) offer interest income and tax-free maturity gains for original subscribers. Since new SGB issuances have stopped, Gold ETFs are currently the more accessible option.
Is there any lock-in period for Gold ETFs?
No. Gold ETFs can be bought and sold on the exchange any time during market hours, with no lock-in.
