2 weeks ago
5 Best Gold ETFs in India by 5-Year Returns
This article is about gold exchange traded funds, which are like baskets that let people invest in gold without buying heavy gold bars.
Gold in India has gone up a lot in value in the last few years, so many people want to buy these funds.
There are 26 different gold ETFs in India and they all hold the same kind of gold.
The main differences are the fees they charge and how easily you can buy and sell them.
The article ranks the top five gold ETFs based on how much they grew over the last five years.
LIC MF Gold ETF grew the most, with an average yearly growth of about 24.9%.
UTI Gold ETF came second and has actually performed best over the last one, two, and three years.
Some funds are better at tracking the price of gold closely, while others charge lower fees.
The article also says gold ETFs are now taxed less than physical gold.
It reminds investors to consider costs, liquidity, and whether the price still makes sense before investing.
Indian gold ETFs returned about 47% over the twelve months to 7 August 2026
Gold ETFs in India have compounded at roughly 24.5% per year over five years
26 gold ETFs are listed in India, all holding physical gold of 995 fineness
LIC MF Gold ETF tops the five-year CAGR table at 24.90%
Aditya Birla Sun Life Gold ETF has the lowest tracking error, ranking 1st of 26
Listed gold ETF units held over 12 months attract long-term capital gains tax at a flat 12.5%
- Who
- Indian mutual fund houses including LIC MF, UTI, Invesco India, ICICI Pru and Aditya Birla Sun Life
- What
- A ranking and analysis of the top 5 gold ETFs in India based on five-year returns
- Where
- India
- When
- Data as of 7 August 2026, with tracking error measured from 9 August 2023 to 9 August 2026
- Why
- To help investors choose which gold ETF to buy amid strong gold returns and clarify differences like fees, liquidity and tracking error
Fundamentals-Focused View
Returns-Focused View
Which ETF deserves the top rank?
Fundamentals-Focused View
Ranking should emphasize tracking error and scalability, which would favor funds like Aditya Birla SL Gold ETF (lowest tracking error) and ICICI Pru Gold ETF (largest assets, tighter spreads).
Returns-Focused View
Ranking should emphasize historical returns, making LIC MF Gold ETF the clear winner for its 24.90% five-year CAGR, even though its tracking error and one-year returns are only mid-pack.
Key facts
- Category average 1-year return
- 47.1%
- Category average 5-year CAGR
- 24.5%
- Total gold ETFs listed in India
- 26
- Top 5-year CAGR
- LIC MF Gold ETF at 24.90%
- Lowest tracking error
- Aditya Birla Sun Life Gold ETF, ranked 1st of 26
- Largest AUM among top 5
- ICICI Pru Gold ETF at Rs 25,822 crore
- Long-term capital gains tax on gold ETFs
- Flat 12.5% without indexation after 12 months
- GST on buying physical gold
- 3%
Sources
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