Gold ETF India - Latest NAV, Returns, and Price for 2025-26

Exchange Traded Fund or ETF is an investment that holds assets like bonds, stocks, and commodities. They trade on the stock exchange and function mostly like stocks.

Gold ETFs are investment products that combine the simplicity of traditional gold investments known in our country and the flexibility of stock investment. They can be traded on the cash market of NSE (National Stock Exchange) and can be bought and sold at current market prices.Gold ETFs invest in gold bullion and are passive investment instruments that are based on direct gold pricing, which ultimately gives investors the transparency they are looking for.

A company named Benchmark Asset Management Company Pvt Ltd proposed gold ETFs in the year 2002 and presented it to SEBI (Securities Exchange Board of India). After much consideration and discussion, the proposal was finally approved and launched in the year 2007. Today, India’s leading Asset Management Companies (AMUs) trade and manage dozens of gold ETFs, many of which are traded on the NSE.

• Cost-effective: As compared to buying bars or coins of gold or gold jewellery from retail outlets, buying gold ETFs is a cost-effective option. While buying gold ETFs, one won’t be charged for any making charges, retail outlet taxes, etc. You can buy and sell them at standard current national rates of gold.
• Flexibility: Gold ETFs offer flexibility both in terms of buying and selling and the amount spent to buy these ETFs.For buying and selling gold ETFs, you only need a Demat account and have an asset management company buy and sell them on the stock exchange online. You can also purchase a single gram worth of gold ETFs as against requiring a large amount of money to buy gold from a retailer.
• Ease of transaction: Transactions are hassle-free. They involve zero entry and exit load. They can also be used as security when taking loans.Gold ETFs do not incur wealth, sales, VAT, or security transaction tax. The long-term capital gains tax is also incurred only if the gold ETFs are kept for five or more years.Similar to any other equity fund, the NAV (Net Asset Value) of a gold ETF can increase or decrease as per the market trends. Hence, it is advisable to study the trends and returns of various mutual funds over weeks, months, and years.

As per the trends studied over a dozen gold ETFs in India, the returns yearly, 3-yearly, and 5-yearly returns vary. The 5- yearly returns range from 7 to 8.5%; the annual returns vary from 19-28%, and the 3-yearly returns vary from 7 to 11.5%. Please note that these figures are also dependent on the value of the Asset Management Company.

In the year 2020, the price of gold per 10 grams shot up to Rs. 44K and experts say that it will continue to grow. However, they continue to encourage people to buy gold ETFs because of the significant returns in the past, its various benefits of being hassle-free, secure, and free of any extra taxes.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.