Gold Face-Off: Physical Gold vs Top Gold ETFs-Which Gave Higher Returns on ₹2 Lakh in 3 Years?

If you invested ₹2,00,000 in May 2022, top Indian Gold ETFs have outperformed physical gold over the past three years. Leading Gold ETFs like Axis Gold ETF, HDFC Gold ETF, and ICICI Prudential Gold ETF delivered average annualized returns of about 18.3% over three years. This means your investment would have grown to approximately ₹3,41,000 by May 2025.

 

In comparison, physical gold in India has delivered an average annual return of around 12% over the last decade, but recent three-year returns have trailed ETFs, mainly due to additional costs like making charges and storage. Your ₹2,00,000 in physical gold would now be worth about ₹2,81,000.

 

Result:

 

•⁠  ⁠Gold ETF (Axis/HDFC/ICICI): ~₹3,41,000

 

•⁠  ⁠Physical Gold: ~₹2,81,000

 

Gold ETFs win on returns, liquidity, and convenience for this period.

 

Source: Financial Express, Business Today