Gold ETFs have become more attractive to investors as it has shown strong performance, reaching the 1 lakh mark, and the unavailability of new Sovereign Gold Bonds. In March 2025, ₹58,887.99 crore flowed into these funds. UTI Gold ETF, Tata Gold ETF and HDFC Gold ETF are the top performers, with a reasonable expense ratio.
Gold ETFs have become a popular go-to investment, with investors flocking back to these traditional havens amid rising gold prices and growing uncertainty. In addition to this, the government's pause on issuing new Sovereign Gold Bonds (SGBs). As a result, in March, 2025, inflow of ₹58,887.99 crore has been seen in gold ETFs, which are traded on stock exchanges.
The Gold has returned 34.47% in the last year, compared to the Nifty’s 7.2% gains.
The UTI Gold Exchange Traded Fund is an open-ended ETF launched by UTI Mutual Fund on March 12, 2007. It tracks the domestic price of gold as its benchmark. In the last 12 months, the ETF has delivered returns of 32.11%, compared to the benchmark return of 34.47%, as of April 29, 2025.
As of March 31, 2025, the total assets under management are ₹1,844 crore, with a total expense ratio of 0.50%. The minimum investment required is ₹20,000, with no top-up amount.
The net asset value (NAV) as of April 29, 2025, is ₹81.3.
Since its inception, the ETF has delivered a CAGR of 12.56%.
The Tata Gold Exchange Traded Fund is an open-ended commodity ETF launched by Tata Mutual Fund on January 12, 2024. In the last 12 months, the ETF has delivered returns of 31.97% compared to the benchmark return of 34.47%, as of April 29, 2025.
As of March 31, 2025, the fund manages total assets worth ₹513.56 crore, with a total expense ratio (TER) of 0.36%. The minimum investment required is ₹100, with no top-up amount needed.
The NAV as of April 29, 2025, stands at ₹9.31.
Since its inception, the fund has delivered a CAGR of 37.87%.
The HDFC Gold ETF is an open-ended exchange-traded fund launched by HDFC Mutual Fund on August 13, 2010. In the last 12 months, the ETF has delivered returns of 31.85%, compared to the benchmark return of 34.47%, as of April 29, 2025.
As of March 31, 2025, the ETF manages total assets worth ₹9,026 crore, with a total expense ratio of 0.59%. The minimum investment required is ₹5,000, with no top-up amount. There is no exit load applicable.
The net asset value (NAV) as of April 29, 2025, is ₹82.4359.
Since its inception, the fund has delivered a CAGR of 10.61%, compared to the benchmark return of 13.52%.
Gold ETFs have emerged as a preferred choice for investors seeking exposure to gold amid global uncertainties and the pause in SGB issuance. With over ₹58,887.99 crore in inflows during March 2025 alone, top-performing ETFs such as UTI, Tata, and HDFC Gold ETFs have delivered over 30% returns in a year, supported by a reasonable expense ratio.
Disclaimer: The article is for informational purposes only and not investment advice.