Akshaya Tritiya 2025: These top gold ETFs with lowest expense ratio turned Rs 10,000 SIP into Rs 27 lakhs in 10 years

Gold ETFs are the exchange-traded funds that track the performance of the underlying security, i.e. price of the yellow metal in domestic markets. So, gold ETFs being passive investment instruments invest in gold bullion and give return mirroring price movement in gold. 

Typically, one 1 gold ETF unit is equivalent to one gram of gold that is backed by physical gold of extremely high purity (99.5 per cent pure gold bars) 

How and from where to buy Gold ETFs in India?

Gold ETFs are open ended mutual fund schemes that can be bought on the BSE or NSE through the broker using a demat as well as trading account. Further, as these investments are largely managed by fund houses, they involve some costs. Also, unlike physical gold – these gold ETFs can be bought and sold at the same price across the country.

Here is a table summarising how investment in gold ETFs score over physical gold

Here in this write-up we discuss about top 3 Gold ETFs with the lowest expense ratio:

HDFC Gold ETF:

This Gold ETF from the house of HDFC Mutual Fund tracks gold prices in the domestic  market and aims to replicate it. The fund has an AUM or assets under management of Rs 9,026 crore as on March 31, 2025. Net asset value or NAV of the fund (growth option) as on April 28 is 92.86.

Furthermore, the fund carries an expense ratio of 0.59 per cent.

In the last one year, the ETF has delivered an annualised return of 29.9 per cent, while its 3-year return is at 21.19 per cent.

The fund requires a minimum lump sum investment of Rs 5,000 and since inception in August 2010 has delivered an annualised return of 10.82 per cent.

A Rs 10,000 monthly SIP in the fund started 10 year ago will now be worth Rs 27.2 lakh (offering an annualised return of 15.64 per cen.

Aditya Birla Sun Life Gold ETF:

NAV of the fund (growth option) as on April 28 is 83.84. The fund has total assets under management worth Rs 1,110 crore, while the expense ratio is at 0.47 per cent.

Since its launch in May 2011, the fund has delivered an annualised return of 9.96 per cent.

Over the 1-year period, the fund’s return is at 29.38 per cent, while its 3-year return is at 21.21 per cent.

For a lump sum investment, the minimum amount is Rs 5,000.

A 10,000 monthly SIP started in the fund 10 years ago with an investment totalling to Rs 12 lakh is worth Rs 27.3 lakh ( annualised return of 15.7 per cent).

Kotak Gold ETF

NAV of the fund under the IDCW option is Rs 79.69. Total asset size of the fund is at Rs 7.167 crore. Since the fund’s debut in July 2007, the fund has given a return of 13.21 per cent.

In the last one year, the ETF has given an annualised return of 29.37 per cent, while its return in the 3-year time frame is at 21.21 per cent.

Minimum lump sum investment in the fund is at Rs 100, while the expense ratio of the fund is at 0.55 per cent.

Rs 10,000 monthly SIP in the fund with an investment of Rs 12 lakh spread across 10 years will be worth Rs 27.24 lakh (annualised return of 15.67 per cent).

So, all of these funds which provide a return mirroring the gold price movement have converted an investment of Rs 12 lakh into Rs 27.24 lakh.