Gold ETFs Deliver Strong Gains in 2025: Gold exchange-traded funds have become a hot favorite among Indian investors this year. With gold prices soaring over 40% in 2025, ETFs provided both stability and growth, emerging as one of the most sought-after investment options for hedging against uncertainty.
Gold Prices Hit Lifetime Highs: Domestic gold prices touched record levels, rising more than 40% in 2025. On MCX, gold crossed Rs. 1,01,967 per 10 grams in August. The rally was fueled by heavy central bank buying, geopolitical concerns, and expectations of rate cuts from the US Federal Reserve, all of which boosted gold’s safe-haven appeal.
Strong Investor Inflows into ETFs: Investor demand surged, with gold ETFs witnessing inflows of Rs. 2,190 crore in August, the highest since January 2025. Year-to-date, investments crossed Rs. 5,648 crore, while total AUM nearly doubled to Rs. 72,496 crore, compared to Rs. 37,390 crore a year ago.
HDFC Gold ETF Performance: HDFC Gold ETF posted 38.01% one-year returns with a NAV of Rs. 86.48. Over 5 years, it has compounded at 14.98% annually, and over 10 years, it has delivered a steady 12.69% return-making it a strong choice for long-term investors.
Axis Gold ETF Returns: Axis Gold ETF generated 38.05% returns in the past year, with a NAV of Rs. 84.35. It has delivered 14.15% average annual returns over 5 years and 12.44% over a decade, reflecting consistent performance in rising and stable markets alike.
ICICI Prudential Gold ETF Gains: ICICI Prudential Gold ETF clocked 38.06% one-year returns, with a NAV of Rs. 86.59. The fund has averaged 14% annualized returns over 5 years and 12.59% over 10 years, offering a balanced mix of stability and growth.
UTI Gold ETF Tops the Chart: Among leading funds, UTI Gold ETF emerged as the best performer with 38.73% one-year returns and a NAV of Rs. 86.59. Over the long term, it has compounded at 14% annually over 5 years and 12.72% over 10 years, making it the top choice in 2025. Please note that the above information is only for educational purposes and is based on a Mint report. Investors should do their own research before making any financial decisions.