Gold has always been a trusted asset in India, but buying jewelry or storing physical gold is outdated. If you want to invest in gold in a modern, low-cost, and hassle-free way, Gold ETFs are the best option.
But how do Gold ETFs work? Where can you buy them? And is it safe?
This beginner’s guide explains how to invest in Gold ETF in India, especially if you’re starting small or building long-term wealth.
📦 What is a Gold ETF?
A Gold ETF (Exchange Traded Fund) is a type of mutual fund that tracks the price of physical gold.
But instead of holding coins or bars, you hold units of gold in demat form—each unit typically equals 1 gram of gold.
📌 You can buy/sell Gold ETFs just like shares on the stock exchange.
🏦 How to Invest in Gold ETF in India (Step-by-Step)
Here’s how you can get started in 5 simple steps:
1. Open a Demat & Trading Account
You need a demat + trading account to invest in Gold ETFs.
✅ Platforms: Zerodha, Groww, Upstox, Angel One, HDFC Securities, etc.
2. Log In to Your Trading Platform
Once your account is active, log in to your dashboard.
3. Search for Gold ETFs
Look for ETFs with keywords like:
- Nippon India Gold ETF (NIPGOLD)
- SBI Gold ETF (SBIGETS)
- HDFC Gold ETF
- Kotak Gold ETF
- ICICI Prudential Gold ETF
4. Check the Price and Performance
Gold ETFs are priced close to the price of 1 gram, 0.1 gram, or 0.01 gram of gold.
Compare:
- 1-year and 3-year returns
- Expense ratio (lower is better)
- Liquidity (average daily volume)
5. Place a Buy Order
Buy as many units as you want—starting from 1 unit (~₹100 as of 2025).
You can sell anytime, just like stocks.
💰 Why I Prefer Gold ETFs Over Other Gold Options
✅ No storage risk
✅ No making charges
✅ Lower cost than gold mutual funds
✅ SEBI-regulated, highly liquid
✅ Transparent pricing and easy tracking
📈 Top Gold ETFs in India (2025)
| ETF Name | 1Y Return | Expense Ratio |
|---|---|---|
| Nippon India Gold ETF | 13.8% | 0.39% |
| SBI Gold ETF | 14.2% | 0.45% |
| HDFC Gold ETF | 13.5% | 0.47% |
| ICICI Pru Gold ETF | 14.0% | 0.40% |
| Kotak Gold ETF | 13.6% | 0.43% |
📌 Returns updated for 2024–25 trend. Check the latest before investing.
⚖️ Gold ETF vs Other Gold Investment Options
| Feature | Gold ETF | Digital Gold | SGB | Physical Gold |
|---|---|---|---|---|
| Minimum Investment | ~₹100 | ₹1 | 1 gram (~₹6,000) | High (~₹6,000+) |
| Liquidity | High | High | Medium (5–8 yrs) | Medium |
| Tax-Free Returns | ❌ | ❌ | ✅ (after 8 yrs) | ❌ |
| Storage Risk | ❌ | ❌ | ❌ | ✅ |
| Best For | Traders & investors | Beginners | Long-term investors | Jewellery lovers |
Update: Sovereign Gold Bonds (SGB) discontinued: Should you buy from the secondary market?
❓ Who Should Invest in Gold ETFs?
✅ If you:
- Want to diversify your portfolio
- Don’t want the headache of physical gold
- Have a demat account or plan to open one
- Prefer liquidity + transparency
Then, Gold ETFs are your best bet.
🔐 Tips Before You Start
- Compare expense ratios and past returns
- Don’t invest more than 10–15% of your portfolio in gold
- Use limit orders if the market is volatile
- Track performance quarterly, not daily
💬 Final Thoughts
In 2025, Gold ETFs are the smartest, safest, and most modern way to invest in gold in India, especially for salaried individuals, students, or first-time investors.
With just a demat account and a few clicks, you’re owning gold digitally and securely.
Start small, stay consistent, and watch your wealth grow.
Not sure where to start? Just send us a message—we’ll make it easy for you.
