On April 18, 2025, at the time of writing this article, gold prices in India have breached the Rs 96,000 per 10 grams, driven by a host of domestic and global factors. In the international market, gold prices have crossed USD 3,300 an ounce level. There are many big reasons behind this unprecedented rise at the global level. Growing geopolitical uncertainty, aggressive buying of gold by central banks around the world, and economic instability have increased the shine of gold.
If we talk about gold in India, the metal is a symbol emotions and security. Every family in India wants to have some gold in its safe. But of late, the old thinking of investors to possess physical gold has changed. Along with physical gold, people are now also looking at such options where investment is easy, risk is low and returns are stable — and this is where the role of digital gold and gold mutual funds becomes important.
Gold ETFs: A smart investment option
Gold ETFs are essentially mutual funds that track gold prices. Investors can buy and sell them just like in the stock market, without having to worry about storing gold at home, in a locker, or its purity. But the question is — have gold ETFs really given returns as good as or better than physical gold?
Also read: Gold ETFs Vs Physical Gold: Where to invest? 10 to 15-year returns compared
To find the answer, we analysed the performance of five of India’s oldest gold ETFs over a period of 15 to 18 years. These funds are:
These gold ETFs have delivered returns ranging from 11% to 13% CAGR over the last 16 to 18 years. Some of these ETFs have outperformed physical gold when the returns are compared with that of physical gold since the launch of each of these funds.
5 oldest gold ETFs in India: How their 16–18 year returns stack up against physical gold
1. Nippon India ETF Gold BeES
Fund’s launch date: 8 March 2007 (Age – 18 years 1 month)
Return since launch: 12.44% CAGR
Now, if we see gold price rise since 8 March 2007, the precious metal has jumped from Rs 10,800 per 10 grams to over Rs 96,000 per 10 grams.
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