Gold Exchange-Traded Funds (ETFs) have become a popular investment vehicle for many, showcasing significant returns over the years. With a steady increase in gold prices, these funds have proven to be effective, with some investments turning monthly SIPs (Systematic Investment Plans) of ₹10,000 into substantial returns. This article explores the performance of various Gold ETFs in India over the last five years, examining their returns and the reasons for gold’s upward price trajectory.
Gold ETFs Performance Overview
In the past five years, investing ₹10,000 monthly in a Gold ETF has yielded impressive returns. Here’s a detailed comparison of some of the leading Gold ETFs in India:
| ETF Name | Investment Return (in ₹) | XIRR (%) |
|---|---|---|
| LIC MF Gold ETF | 9,28,000 | 17.71 |
| UTI Gold ETF | 9,24,000 | 17.54 |
| HDFC Gold ETF | 9,21,000 | 17.19 |
| Axis Gold ETF | 9,19,000 | 17.18 |
| Aditya Birla SL Gold ETF | 9,16,000 | 17.19 |
| Quantum Gold Fund ETF | 9,15,000 | N/A |
| SBI Gold ETF | 9,14,000 | N/A |
| Nippon India ETF Gold BEES | 9,12,000 | 17.00 |
Market Dynamics and Investment Strategies
The total assets managed by these Gold ETFs amounted to ₹16,975 crores as of January 31, 2025. Notably, there was a record investment of approximately ₹3,751 crores in Gold ETFs in January 2025, marking a significant increase of nearly 486% compared to ₹640 crores in December. Experts suggest that during periods of market underperformance or geopolitical tensions, investors gravitate towards gold as a safe-haven asset.
Expert Insights on Gold Investments
Experts point out that gold prices have appreciated significantly in the post-pandemic era. When equity markets are volatile or geopolitical uncertainties arise, investors often seek the security that gold provides. Additionally, since gold is valued in dollars, a depreciation in the Indian Rupee tends to drive gold prices up. While gold is commonly viewed as a hedge against inflation, it should be considered as part of a diversified investment strategy alongside other asset classes.
The Future of Gold ETFs
In the current market environment, Gold ETFs are likely to continue attracting attention as both retail and institutional investors seek stability and growth. As gold prices fluctuate, maintaining a balanced portfolio that includes gold can offer both protection against risks and opportunities for capital appreciation.