Gold ETFs turned Rs 10,000 monthly SIP into over Rs 9 lakh in 5 years. Did you miss the gold rush?

Gold ETFs have turned Rs 10,000 monthly SIPs into more than Rs 9 lakh in just five years, an analysis by ETMutualFunds showed. Around 11 funds have marked their presence in the market for the last five years.

LIC MF Gold ETF turned a Rs 10,000 monthly SIP into Rs 9.28 lakh with an XIRR of 17.71% in the last five years. The total invested amount was Rs 6 lakh. UTI Gold ETF turned the SIP investment into Rs 9.24 lakh with an XIRR of 17.54% in the period.



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HDFC Gold ETF and Axis Gold ETF have turned Rs 10,000 SIP into Rs 9.21 lakh and Rs 9.19 lakh, respectively, in the same period. Aditya Birla SL Gold ETF and Kotak Gold ETF turned the monthly investment into Rs 9.16 lakh each in the period with an XIRR of 17.19% and 17.18%, respectively.

In the last five years, Quantum Gold Fund ETF turned Rs 10,000 SIP into Rs 9.15 lakh followed by SBI Gold ETF, which turned it into Rs 9.14 lakh in the said period.

Nippon India ETF Gold BeES, the largest gold ETF based on assets managed, turned Rs 10,000 SIP into Rs 9.12 lakh with an XIRR of 17% in the last five years. The scheme manages an asset of Rs 16,975 crore as of January 31, 2025.

In January 2025, Gold ETFs received record investments of around Rs 3,751 crore, witnessing a jump of nearly 486% from an inflow of Rs 640 crore in December. An expert opined that when the markets are not performing or when there are geo-political tensions, investors flock to safety.

Moreover, gold ETFs, gold funds, or a multi-asset fund allocation are good possible options only as one segment of an overall balanced asset allocation and one should keep in mind here that gold is not for speculative purposes but more for diversification, he added.

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“Gold has gone up significantly in the last 5 years after the pandemic. Investors flock to safety when equity markets are not performing or when there are geopolitical tensions. Since gold's price is in dollars, a depreciating rupee will only increase its value. Although gold is considered a hedge against inflation, it should be viewed as one of many such alternatives in diversified investment strategies. Gold ETFs, gold funds, or a multi-asset fund allocation are good possible options only as one segment of an overall balanced asset allocation. One should keep in mind here that gold is not for speculative purposes but more for diversification,” said Rajesh Minocha, a Certified Financial Planner (CFP) and founder of Financial Radiance.

Another expert shares similar views that in the ongoing volatility, many seek refuge in Gold ETFs, which are considered safe-haven assets.

“The ongoing volatility in domestic and global equity markets heightened investors' risk aversion, leading many to seek refuge in gold ETFs, which are traditionally considered safe-haven assets. This shift was driven by concerns over economic uncertainties and geopolitical tensions,” said Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India.

“Moreover, expectations of further interest rate cuts by major central banks, including the U.S. Federal Reserve, increased the appeal of gold as a non-yielding asset. Lower interest rates reduce the opportunity cost of holding gold, making it a more attractive investment,” he added.