Gold ETF vs SGB Comparator

Compare Gold ETF, Sovereign Gold Bond (SGB), and Digital Gold returns. Includes expense ratio, tax treatment, interest income, and liquidity comparison.

Gold ETF vs SGB vs Digital Gold Calculator

SGB (2.5% interest + tax-free) vs Gold ETF vs Digital Gold returns

Investment amount Rs 1L
Rs 5KRs 50L
Rs
Current gold rate Rs 7,200/g
Rs 4KRs 15K
Rs/g
Gold appreciation p.a. 6%
2%15%
%
Holding period 8 years
3 yr20 yr
yrs
Gold ETF expense ratio 0.65%
0.3%1.5%
%
SGB corpus
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maturity + interest
Gold ETF corpus
---
after LTCG tax
Digital Gold corpus
---
after GST + tax
Investment amount---
SGB total (maturity + interest)---
Gold ETF (post LTCG)---
Digital Gold (post GST + LTCG)---
SGB advantage over ETF---
SGB vs Gold ETF corpus
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Rates and regulations are indicative. Verify current rules with your bank, SEBI, or tax advisor before transacting.

Corpus growth — SGB vs Gold ETF over time
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ThriftRupee Insight

For long-term gold investors (8+ years), SGB beats Gold ETF primarily because of tax-free maturity and the 2.5% annual interest bonus. For shorter periods (<5 years), Gold ETF wins on liquidity and ease of trading. Digital Gold (Paytm, PhonePe) has the highest charges (0.5–1% buy-sell spread + 3% GST on each transaction) and is suitable only for very small amounts or gifting — not serious investment.

Gold ETF vs SGB vs Digital Gold Calculator

Compare Gold ETF, Sovereign Gold Bond (SGB), and Digital Gold returns. Includes expense ratio, tax treatment, interest income, and liquidity comparison.

Frequently asked questions

Gold ETF vs SGB — which is better?▼
SGB is better for 8-year horizon: same gold appreciation + 2.5% interest + tax-free maturity. Gold ETF is better for shorter horizons: fully liquid (sell anytime on NSE/BSE), no lock-in, lower ticket size. Gold ETF expense ratio is 0.5–1% annually. Both are superior to physical gold for investment. Key SGB drawback: 8-year lock-in (premature redemption only on 5th, 6th, 7th year interest payment dates).
What is the expense ratio of Gold ETFs in India?▼
Gold ETF expense ratios in India range from 0.5% to 1% per annum. Major Gold ETFs: HDFC Gold ETF (0.59%), Nippon India Gold ETF (0.82%), SBI Gold ETF (0.65%). The expense ratio is automatically deducted from NAV daily — you don't pay it explicitly. Over 10 years, a 0.75% expense ratio reduces your corpus by approximately 7.2%.
Is Digital Gold a good investment?▼
Digital Gold (sold by Paytm, PhonePe, MMTC-PAMP) is convenient for small amounts but has significant cost disadvantages. It charges GST (3%) on every purchase, a buy-sell spread of 0.5–1%, and storage charges after a period. For amounts above Rs 5,000, Gold ETF or SGB is always a better choice. Digital Gold is also not regulated by SEBI — making it riskier than ETFs or SGBs.

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