E-Gold Vs Gold ETFs- Which is a Better Option?

Updated on August 25, 2021 , 15839 views

E-Gold Vs Gold ETFs? Which is a better Gold Investment option? Which avenue has a higher yield? These are some of the common questions often asked by an investor wanting to invest in these non-physical form of gold. Well, both the forms are unique in trading with each having its own benefits in essential parameters like returns, taxation, holding period, etc. Therefore, we will see how both- Gold ETFs and E-Gold differ from each other and which form makes a better gold investment option!

e-gold-vs-gold-etfs

E-Gold is a unique gold investment product launched by the National Spot Exchange Limited (NSEL). This product enables investors to Buy Gold in an electronic form on the NSE’s trading platform and the gold bought by you will reflect in your Demat account.

E-Gold is one such investment that allows investors to buy gold in a smaller denomination, such as 1gm, 2gm, 3gm, etc. The gold units that you would buy here will be credited to your Demat account in T+2 days. Similarly, for instance, if you have sold today, the same will debited from your Demat account in 2 days (from the date of sale).

E-gold is less expensive compared to gold ETFs as the latter is exposed to various charges like asset management fees, security service fees, etc. To know the current value of your investment in gold ETFs, you have to track the NAV of that fund but in the case of e-gold, the value is that of the prevailing gold price.

Gold ETFs

Gold ETFs has become one of the most popular modes of gold investments. Gold ETFs are also the underlying of open-ended Gold Mutual Funds that help you to invest your money in gold. The underlying gold purity is 99.5%. Gold ETFs are also known as paper gold. These are listed and traded on major stock exchanges and investors are assigned units where each unit usually represents one gram of gold.

In gold ETFs, investors can trade in their existing Demat account. Gold ETFs offers investors a secure way to access the gold market. They also provide the benefit of liquidity as it can be traded at any time during the trading period.

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E-Gold Vs Gold ETFs: Know the Key Differences

Trading Time

Gold ETFs can be traded only between 9:00 am to 3:30 pm on weekdays. Whereas, e-gold can be traded from 10:00 am to 11:30 pm on weekdays.

Conversion to Physical Form

Both the forms can be converted into physical gold, but the minimum quantity for each varies. The minimum quantity for e-gold is 8 grams, while, in gold-ETF, one can convert only when it exceeds a certain size of 500gm to 1Kg.

E-Gold is the Most Cost

Efficient form and is able to trace gold prices more closely than gold ETFs. However, e-gold loses out to gold ETFs when it comes to taxation.

But, now, when you know the key difference between these two forms, invest in an avenue that offers secure investment with better returns!

Parameters Gold ETFs E-Gold
Separate Demat Account No Yes
Holdings Owned by AMCs Yes
Conversion to Physical Gold Minimum 0.5-1 kg Investors directly hold gold units in demat account
Short Term Capital Gains Less than 1 year- 20% tax on returns Less than 3 years- 20% tax on returns
Long Term Capital Gains After 1 year- 10% tax returns After 3 years- 10% tax on returns
Recurring Expenses 0.40% 1%
Returns Highest at its the most cost-effective Slightly lower than gold ETF
Pricing Linked to International Gold Price Linked to Indian Gold Price
Convert to Jewelry Not available Available with selected Jewellers

Best Gold ETFs to Invest 2021

Some of the best underlying Gold ETFs to Invest are as follows:

1. Axis Gold Fund

To generate returns that closely correspond to returns generated by Axis Gold ETF.

Axis Gold Fund is a Gold - Gold fund was launched on 20 Oct 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 3.9% since its launch. .

Below is the key information for Axis Gold Fund

Axis Gold Fund
Growth
Launch Date 20 Oct 11
NAV (27 Aug 21) ₹14.5202 ↑ 0.03   (0.24 %)
Net Assets (Cr) ₹250 on 31 Jul 21
Category Gold - Gold
AMC Axis Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.3
Sharpe Ratio -1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 16₹10,000
31 Jul 17₹8,782
31 Jul 18₹9,082
31 Jul 19₹10,425
31 Jul 20₹15,898
31 Jul 21₹14,289

Axis Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹367,070.
Net Profit of ₹67,070

Invest Now

Returns for Axis Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Aug 21

DurationReturns
1 Month -0.8%
3 Month -3.4%
6 Month 1.5%
1 Year -8.3%
3 Year 15.3%
5 Year 7.2%
10 Year
15 Year
Since launch 3.9%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for Axis Gold Fund
NameSinceTenure
Devang Shah7 Jun 165.15 Yr.

Data below for Axis Gold Fund as on 31 Jul 21

Asset Allocation
Asset ClassValue
Cash3.87%
Other96.13%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Axis Gold ETF
- | AXISGOLDEQ
98%₹238 Cr58,700,000
↑ 58,700,000
Clearing Corporation Of India Ltd
CBLO | -
2%₹5 Cr
Net Receivables / (Payables)
Net Current Assets | -
0%-₹1 Cr

2. ICICI Prudential Regular Gold Savings Fund

ICICI Prudential Regular Gold Savings Fund (the Scheme) is a fund of funds scheme with the primary objective to generate returns by investing in units of ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF). However, there can be no assurance that the investment objectives of the Scheme will be realized.

ICICI Prudential Regular Gold Savings Fund is a Gold - Gold fund was launched on 11 Oct 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 4.5% since its launch. .

Below is the key information for ICICI Prudential Regular Gold Savings Fund

ICICI Prudential Regular Gold Savings Fund
Growth
Launch Date 11 Oct 11
NAV (27 Aug 21) ₹15.4435 ↑ 0.08   (0.50 %)
Net Assets (Cr) ₹557 on 31 Jul 21
Category Gold - Gold
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.35
Sharpe Ratio -1.04
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load 0-15 Months (2%),15 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 16₹10,000
31 Jul 17₹9,026
31 Jul 18₹9,415
31 Jul 19₹10,889
31 Jul 20₹16,500
31 Jul 21₹14,714

ICICI Prudential Regular Gold Savings Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹367,070.
Net Profit of ₹67,070

Invest Now

Returns for ICICI Prudential Regular Gold Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Aug 21

DurationReturns
1 Month -1.1%
3 Month -3.4%
6 Month 1.5%
1 Year -8.7%
3 Year 14.7%
5 Year 7.1%
10 Year
15 Year
Since launch 4.5%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for ICICI Prudential Regular Gold Savings Fund
NameSinceTenure
Manish Banthia27 Sep 128.85 Yr.
Nishit Patel29 Dec 200.59 Yr.

Data below for ICICI Prudential Regular Gold Savings Fund as on 31 Jul 21

Asset Allocation
Asset ClassValue
Cash2.11%
Other97.89%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Pru Gold ETF
- | ICICIGOLD
100%₹535 Cr129,119,644
↑ 5,057,436
Treps
CBLO/Reverse Repo | -
1%₹3 Cr
Net Current Assets
Net Current Assets | -
0%-₹2 Cr

3. Kotak Gold Fund

The investment objective of the scheme is to generate returns by investing in units of Kotak Gold Exchange Traded Fund.

Kotak Gold Fund is a Gold - Gold fund was launched on 25 Mar 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 6.6% since its launch. .

Below is the key information for Kotak Gold Fund

Kotak Gold Fund
Growth
Launch Date 25 Mar 11
NAV (27 Aug 21) ₹19.3948 ↑ 0.06   (0.33 %)
Net Assets (Cr) ₹993 on 31 Jul 21
Category Gold - Gold
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.56
Sharpe Ratio -1.01
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-6 Months (2%),6-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 16₹10,000
31 Jul 17₹9,078
31 Jul 18₹9,373
31 Jul 19₹10,916
31 Jul 20₹16,734
31 Jul 21₹14,962

Kotak Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹367,070.
Net Profit of ₹67,070

Invest Now

Returns for Kotak Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Aug 21

DurationReturns
1 Month -1.2%
3 Month -3.5%
6 Month 1.7%
1 Year -9%
3 Year 15.6%
5 Year 7.7%
10 Year
15 Year
Since launch 6.6%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for Kotak Gold Fund
NameSinceTenure
Abhishek Bisen25 Mar 1110.36 Yr.

Data below for Kotak Gold Fund as on 31 Jul 21

Asset Allocation
Asset ClassValue
Cash3.73%
Other96.27%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Kotak Gold ETF
- | KOTAKGOLDE
98%₹932 Cr22,830,806
↑ 560,000
Triparty Repo
CBLO/Reverse Repo | -
2%₹17 Cr
Net Current Assets/(Liabilities)
Net Current Assets | -
0%-₹1 Cr

4. IDBI Gold Fund

The investment objective of the Scheme will be to generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund (IDBI GOLD ETF).

IDBI Gold Fund is a Gold - Gold fund was launched on 14 Aug 12. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 2.8% since its launch. .

Below is the key information for IDBI Gold Fund

IDBI Gold Fund
Growth
Launch Date 14 Aug 12
NAV (27 Aug 21) ₹12.889 ↓ -0.01   (-0.05 %)
Net Assets (Cr) ₹41 on 31 Jul 21
Category Gold - Gold
AMC IDBI Asset Management Limited
Rating Not Rated
Risk Moderately High
Expense Ratio 0.66
Sharpe Ratio -1.27
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 16₹10,000
31 Jul 17₹8,759
31 Jul 18₹8,829
31 Jul 19₹10,414
31 Jul 20₹15,948
31 Jul 21₹13,644

IDBI Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120

Invest Now

Returns for IDBI Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Aug 21

DurationReturns
1 Month -1.1%
3 Month -2.2%
6 Month -0.1%
1 Year -9.1%
3 Year 14.8%
5 Year 6%
10 Year
15 Year
Since launch 2.8%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for IDBI Gold Fund
NameSinceTenure
Firdaus Ragina20 Jun 192.12 Yr.

Data below for IDBI Gold Fund as on 31 Jul 21

Asset Allocation
Asset ClassValue
Cash1.38%
Other98.62%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
IDBI Gold ETF
- | 533719
99%₹39 Cr91,395
↓ -1,072
Net Receivable / Payable
Net Current Assets | -
1%₹0 Cr
Treps
CBLO/Reverse Repo | -
0%₹0 Cr

5. SBI Gold Fund

The scheme seeks to provide returns that closely correspond to returns provided by SBI - ETF Gold (Previously known as SBI GETS).

SBI Gold Fund is a Gold - Gold fund was launched on 12 Sep 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 3.8% since its launch. .

Below is the key information for SBI Gold Fund

SBI Gold Fund
Growth
Launch Date 12 Sep 11
NAV (27 Aug 21) ₹14.5184 ↑ 0.05   (0.33 %)
Net Assets (Cr) ₹1,164 on 31 Jul 21
Category Gold - Gold
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 0.47
Sharpe Ratio -1.01
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 16₹10,000
31 Jul 17₹9,021
31 Jul 18₹9,318
31 Jul 19₹10,747
31 Jul 20₹16,499
31 Jul 21₹14,672

SBI Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹367,070.
Net Profit of ₹67,070

Invest Now

Returns for SBI Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Aug 21

DurationReturns
1 Month -1.1%
3 Month -3.3%
6 Month 1.5%
1 Year -9.1%
3 Year 15.2%
5 Year 7.3%
10 Year
15 Year
Since launch 3.8%
Historical performance (Yearly) on absolute basis
YearReturns
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Fund Manager information for SBI Gold Fund
NameSinceTenure
Raviprakash Sharma12 Sep 119.89 Yr.

Data below for SBI Gold Fund as on 31 Jul 21

Asset Allocation
Asset ClassValue
Cash1.73%
Other98.27%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI ETF Gold
- | SETFGOLD
100%₹1,129 Cr2,722,687
↑ 50,549
Treps
CBLO/Reverse Repo | -
0%₹4 Cr
Net Receivable / Payable
Net Current Assets | -
0%-₹3 Cr

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