Top 5 Low-Cost Gold ETFs in India with SIPs Starting from ₹99

Gold prices in India have seen a remarkable rise over the past few years. Since March 2020, 24-carat gold prices have more than doubled. This surge has driven investors towards various gold-linked investment options, with gold exchange-traded funds (ETFs) emerging as a preferred choice.

Gold ETFs offer a convenient alternative to physical gold, eliminating concerns about storage, theft, and security risks. These funds have gained popularity among investors looking for portfolio stability and inflation protection.

The key differentiating factor among gold ETFs is the expense ratio—the cost of managing the fund. A lower expense ratio reduces investment costs and potentially increases long-term returns.

Overview of Top 5 Low-Cost Gold ETFs in India

Investors looking for cost-effective gold ETFs can consider the following options, ranked based on their expense ratios.

1. Invesco India Gold ETF FoF Direct

• Expense Ratio: 0.10% (as of February 28, 2025)
• Minimum Investment: ₹1,000
• Minimum Additional Investment: ₹1,000
• Minimum SIP Investment: ₹500

2. Tata Gold ETF FoF Direct

• Expense Ratio: 0.17% (as of March 3, 2025)
• Minimum Investment: ₹5,000
• Minimum Additional Investment: ₹1,000
• Minimum SIP Investment: ₹150

3. Mirae Asset Gold ETF FoF Direct

• Expense Ratio: 0.17% (as of February 28, 2025)
• Minimum Investment: ₹5,000
• Minimum Additional Investment: ₹1,000
• Minimum SIP Investment: ₹99

4. HDFC Gold ETF Fund of Fund Direct

• Expense Ratio: 0.18% (as of February 28, 2025)
• Minimum Investment: ₹100
• Minimum Additional Investment: ₹100
• Minimum SIP Investment: ₹100

5. UTI Gold ETF FoF Direct

• Expense Ratio: 0.19% (as of March 4, 2025)
• Minimum Investment: ₹5,000
• Minimum Additional Investment: ₹1,000
• Minimum SIP Investment: ₹500

What Are Gold ETFs and How Do They Work?

Gold ETFs allow investors to hold gold in an electronic form, similar to trading stocks on the exchange. Unlike equity mutual funds, where investors compare past returns before investing, gold ETFs track gold prices directly. This means their returns align closely with the movement of gold prices.

What Are FoF ETFs?

A Fund of Funds (FOF) in an Exchange Traded Fund (ETF) is a mutual fund that puts its money into ETF units instead of directly buying stocks or bonds

Final Thoughts

With rising gold prices, many investors are shifting towards gold ETFs for ease of investment and security. Since these funds mirror gold price movements, the key consideration while choosing a gold ETF is its expense ratio. Lower costs can help investors maximise potential returns in the long run.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.