Gold ETF vs Index Fund: Which Gave Better Returns on ₹10 Lakh Investment Over 10 Years?

Investors often seek stable, long-term returns, and two popular options are gold ETFs and index mutual funds. While gold ETFs track the price of gold, index funds replicate a stock market index. But which of these has generated higher returns on a ₹10 lakh investment over the last decade? Let’s compare.

Top Gold ETF Performance: UTI Gold ETF

Among gold ETFs, UTI Gold ETF has been the top performer over the past 10 years.

• Annualised return (CAGR): 11.33%
• AUM (Assets Under Management): ₹1,599 crore
• NAV (Net Asset Value): ₹72.85
• Benchmark: Domestic gold price
• Expense ratio: 0.50%
• Minimum investment: ₹20,000

How Much Would ₹10 Lakh Have Grown?

At an 11.33% CAGR, an investment of ₹10 lakh in the UTI Gold ETF grew to ₹29,24,975 over the past decade. This means investors gained approximately ₹19,24,975 in long-term capital gains.

Top Index Fund Performance: Bandhan Nifty 50 Index Fund (Direct Plan)

Among index mutual funds, the Bandhan Nifty 50 Index Fund – Direct Plan has delivered the highest 10-year returns.

• Annualised return (CAGR): 11.66%
• AUM: ₹1,666 crore
• NAV: ₹51.48
• Benchmark: NIFTY 50 TRI
• Expense ratio: 0.10%
• Minimum SIP investment: ₹100
• Minimum lump sum investment: ₹1,000

How Much Would ₹10 Lakh Have Grown?

At an 11.66% CAGR, a ₹10 lakh investment in the Bandhan Nifty 50 Index Fund grew to ₹30,12,841 over the 10-year period.

Gold ETF vs Index Fund: Which Performed Better?

While both investments have delivered impressive long-term returns, the index mutual fund slightly outperformed the gold ETF, providing an extra ₹87,866 over 10 years.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.