https://v2.webnotes.in/categories/commodity/Recent content in Commodity on WebNotesHugoen-INTue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/gold-etf-vs-sgb-vs-gold-mf/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/gold-etf-vs-sgb-vs-gold-mf/<p>India offers three regulated paper-gold investment instruments: <strong>Gold ETFs</strong> (exchange-traded funds backed by physical gold), <strong>Sovereign Gold Bonds (SGBs)</strong> (government-issued bonds denominated in grams of gold), and <strong>Gold Mutual Funds</strong> (fund-of-fund schemes investing in gold ETFs). Each tracks the domestic price of 24-carat gold but differs in structure, cost, taxation, and liquidity.</p> <p>Physical gold (jewellery, coins, bars) is excluded from this comparison.</p> <h2 id="instrument-overview">Instrument overview</h2> <h3 id="gold-etf">Gold ETF</h3> <p>A Gold ETF is an exchange-traded fund that holds physical gold (minimum 99.5% purity) as the underlying asset. Each unit of a Gold ETF typically represents 1 gram (or 0.01 gram for some fund-specific units) of gold. Gold ETFs are <a href="https://v2.webnotes.in/sebi-investment-management-department/">SEBI</a> -regulated mutual fund schemes listed on NSE and BSE. A <a href="https://v2.webnotes.in/demat-account/">demat account</a> is required. AMFI-registered AMCs offering Gold ETFs include Nippon India, HDFC, SBI, Axis, Kotak, UTI, and ICICI Prudential, among others.</p>