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.
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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 2024
Some of the best underlying Gold ETFs to Invest are as follows:
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 Below is the key information for IDBI Gold Fund Total investment amount is ₹300,000 Returns up to 1 year are on 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 Below is the key information for Axis Gold Fund Total investment amount is ₹300,000 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 Total investment amount is ₹300,000 Returns up to 1 year are on 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 Below is the key information for Aditya Birla Sun Life Gold Fund Total investment amount is ₹300,000 Returns up to 1 year are on 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 Below is the key information for ICICI Prudential Regular Gold Savings Fund Total investment amount is ₹300,000 Returns up to 1 year are on 1. IDBI Gold Fund
CAGR/Annualized return of 4.6% since its launch. Return for 2023 was 14.8% , 2022 was 12% and 2021 was -4% . IDBI Gold Fund
Growth Launch Date 14 Aug 12 NAV (10 Jan 24) ₹16.6951 ↑ 0.03 (0.19 %) Net Assets (Cr) ₹46 on 30 Nov 23 Category Gold - Gold AMC IDBI Asset Management Limited Rating Not Rated Risk Moderately High Expense Ratio 0.55 Sharpe Ratio 0.85 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.
Date Value 31 Dec 18 ₹10,000 31 Dec 19 ₹12,156 31 Dec 20 ₹15,094 31 Dec 21 ₹14,495 31 Dec 22 ₹16,231 31 Dec 23 ₹18,626 IDBI Gold Fund SIP Returns
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Returns for IDBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Jan 24 Duration Returns 1 Month -0.2% 3 Month 7.8% 6 Month 5.9% 1 Year 10.6% 3 Year 6.5% 5 Year 12.6% 10 Year 15 Year Since launch 4.6% Historical performance (Yearly) on absolute basis
Year Returns 2022 14.8% 2021 12% 2020 -4% 2019 24.2% 2018 21.6% 2017 5.8% 2016 1.4% 2015 8.3% 2014 -8.7% 2013 0.2% Fund Manager information for IDBI Gold Fund
Name Since Tenure Yash Dhoot 31 Jul 23 0.42 Yr. Data below for IDBI Gold Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 0.9% Other 99.1% Top Securities Holdings / Portfolio
Name Holding Value Quantity LIC MF Gold ETF
- | -100% ₹46 Cr 80,344
↑ 330 Treps
CBLO/Reverse Repo | -0% ₹0 Cr Net Receivables / (Payables)
Net Current Assets | -0% ₹0 Cr 2. Axis Gold Fund
CAGR/Annualized return of 5.3% since its launch. Return for 2023 was 14.7% , 2022 was 12.5% and 2021 was -4.7% . Axis Gold Fund
Growth Launch Date 20 Oct 11 NAV (10 Jan 24) ₹18.7623 ↑ 0.01 (0.07 %) Net Assets (Cr) ₹366 on 30 Nov 23 Category Gold - Gold AMC Axis Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.27 Sharpe Ratio 0.9 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.
Date Value 31 Dec 18 ₹10,000 31 Dec 19 ₹12,306 31 Dec 20 ₹15,610 31 Dec 21 ₹14,876 31 Dec 22 ₹16,734 31 Dec 23 ₹19,186 Axis Gold Fund SIP Returns
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080 Returns for Axis Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Jan 24 Duration Returns 1 Month 0.2% 3 Month 7.6% 6 Month 5.7% 1 Year 10.5% 3 Year 6.5% 5 Year 13.2% 10 Year 15 Year Since launch 5.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 14.7% 2021 12.5% 2020 -4.7% 2019 26.9% 2018 23.1% 2017 8.3% 2016 0.7% 2015 10.7% 2014 -11.9% 2013 -11.4% Fund Manager information for Axis Gold Fund
Name Since Tenure Aditya Pagaria 9 Nov 21 2.15 Yr. Data below for Axis Gold Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 3.06% Other 96.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Gold ETF
- | -99% ₹361 Cr 67,657,974
↑ 1,190,817 Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -2% ₹6 Cr Net Receivables / (Payables)
CBLO | -0% -₹1 Cr 3. SBI Gold Fund
CAGR/Annualized return of 5.2% since its launch. Return for 2023 was 14.1% , 2022 was 12.6% and 2021 was -5.7% . SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (10 Jan 24) ₹18.7391 ↓ -0.03 (-0.17 %) Net Assets (Cr) ₹1,502 on 30 Nov 23 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.24 Sharpe Ratio 0.85 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 Dec 18 ₹10,000 31 Dec 19 ₹12,283 31 Dec 20 ₹15,644 31 Dec 21 ₹14,755 31 Dec 22 ₹16,621 31 Dec 23 ₹18,970 SBI Gold Fund SIP Returns
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Jan 24 Duration Returns 1 Month 0.1% 3 Month 8.2% 6 Month 5.8% 1 Year 10.5% 3 Year 6.3% 5 Year 13% 10 Year 15 Year Since launch 5.2% Historical performance (Yearly) on absolute basis
Year Returns 2022 14.1% 2021 12.6% 2020 -5.7% 2019 27.4% 2018 22.8% 2017 6.4% 2016 3.5% 2015 10% 2014 -8.1% 2013 -10.2% Fund Manager information for SBI Gold Fund
Name Since Tenure Raviprakash Sharma 12 Sep 11 12.31 Yr. Data below for SBI Gold Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 1.51% Other 98.49% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹1,502 Cr 274,223,979
↑ 1,403,584 Treps
CBLO/Reverse Repo | -0% ₹4 Cr Net Receivable / Payable
CBLO | -0% -₹4 Cr 4. Aditya Birla Sun Life Gold Fund
CAGR/Annualized return of 5.5% since its launch. Return for 2023 was 14.5% , 2022 was 12.3% and 2021 was -5% . Aditya Birla Sun Life Gold Fund
Growth Launch Date 20 Mar 12 NAV (09 Jan 24) ₹18.7189 ↑ 0.07 (0.37 %) Net Assets (Cr) ₹289 on 30 Nov 23 Category Gold - Gold AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.49 Sharpe Ratio 0.91 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.
Date Value 31 Dec 18 ₹10,000 31 Dec 19 ₹12,134 31 Dec 20 ₹15,294 31 Dec 21 ₹14,524 31 Dec 22 ₹16,311 31 Dec 23 ₹18,672 Aditya Birla Sun Life Gold Fund SIP Returns
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Returns for Aditya Birla Sun Life Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Jan 24 Duration Returns 1 Month 0.1% 3 Month 8% 6 Month 5.9% 1 Year 10.5% 3 Year 6.4% 5 Year 12.9% 10 Year 15 Year Since launch 5.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 14.5% 2021 12.3% 2020 -5% 2019 26% 2018 21.3% 2017 6.8% 2016 1.6% 2015 11.5% 2014 -7.2% 2013 -9.4% Fund Manager information for Aditya Birla Sun Life Gold Fund
Name Since Tenure Pranav Gupta 31 Mar 23 0.76 Yr. Haresh Mehta 28 Apr 23 0.68 Yr. Data below for Aditya Birla Sun Life Gold Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 2.3% Other 97.7% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Gold ETF
- | -100% ₹289 Cr 51,307,587
↑ 100,000 Clearing Corporation Of India Limited
CBLO/Reverse Repo | -0% ₹1 Cr Net Receivables / (Payables)
Net Current Assets | -0% -₹1 Cr 5. ICICI Prudential Regular Gold Savings Fund
CAGR/Annualized return of 5.8% since its launch. Return for 2023 was 13.5% , 2022 was 12.7% and 2021 was -5.4% . ICICI Prudential Regular Gold Savings Fund
Growth Launch Date 11 Oct 11 NAV (10 Jan 24) ₹19.841 ↓ -0.03 (-0.17 %) Net Assets (Cr) ₹754 on 30 Nov 23 Category Gold - Gold AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.4 Sharpe Ratio 0.83 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.
Date Value 31 Dec 18 ₹10,000 31 Dec 19 ₹12,268 31 Dec 20 ₹15,530 31 Dec 21 ₹14,692 31 Dec 22 ₹16,563 31 Dec 23 ₹18,803 ICICI Prudential Regular Gold Savings Fund SIP Returns
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Returns for ICICI Prudential Regular Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Jan 24 Duration Returns 1 Month 0% 3 Month 7.9% 6 Month 5.7% 1 Year 10.2% 3 Year 6.1% 5 Year 12.8% 10 Year 15 Year Since launch 5.8% Historical performance (Yearly) on absolute basis
Year Returns 2022 13.5% 2021 12.7% 2020 -5.4% 2019 26.6% 2018 22.7% 2017 7.4% 2016 0.8% 2015 8.9% 2014 -5.1% 2013 -9.2% Fund Manager information for ICICI Prudential Regular Gold Savings Fund
Name Since Tenure Manish Banthia 27 Sep 12 11.27 Yr. Nish*t Patel 29 Dec 20 3.01 Yr. Data below for ICICI Prudential Regular Gold Savings Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 1.89% Other 98.11% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -100% ₹754 Cr 137,758,897
↑ 352,040 Treps
CBLO/Reverse Repo | -0% ₹3 Cr Net Current Assets
Net Current Assets | -0% -₹2 Cr
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