Last Updated on Feb 6, 2024 by Harshit Singh
Indians have a strong affinity towards gold. Whether it is a wedding or time to invest, gold might be the first thing that comes to most Indian minds. No wonder why India is the second-largest gold market and accounts for over 25% of the world’s gold demand. But have you ever wondered about companies that indulge in gold? And does investing in gold stocks generate higher returns?
In this article, let’s look at the best gold stocks in India, along with the best gold ETFs, best gold mutual funds and important considerations while investing in gold stocks.
Table of Contents
What are gold stocks?
Simply put, stocks with a strong focus on gold are called gold stocks. It can be a gold-mining company, Exchange Traded Funds (ETFs) or gold Mutual Funds (MFs). Let’s understand each of these in brief:
- Gold-mining stocks: These companies develop mines, sell gold and other metals, and explore gold resources.
- Gold ETFs: These funds have gold as an underlying asset. They aim to track the physical gold price. Therefore, the value of gold-focused ETFs depends on the price of gold.
- Gold MFs: Also known as Gold Funds of Funds (Gold FoFs), these funds invest in companies involved in the production and distribution of gold while keeping their portfolio diverse to minimise risks.
Best gold stocks in India (2024)
| Gold Stock Name | Market Cap (Rs. in cr.) | Close Price (Rs.) | 1Y Return (%) | Fundamental Score |
| Goldiam International Ltd | 1,870.52 | 193.50 | 15.18 | 7.37 |
| Thanga Mayil Jewellery Ltd | 3,718.42 | 1,405.95 | 172.18 | 6.70 |
| Tribhovandas Bhimji Zaveri Ltd | 874.84 | 132.35 | 81.18 | 5.58 |
| PC Jeweller Ltd | 2,569.03 | 52.65 | 27.95 | 5.30 |
| Kalyan Jewellers India Ltd | 36,072.46 | 339.85 | 183.44 | 3.61 |
| Kanani Industries Ltd | 114.76 | 6.65 | 63.19 | 3.24 |
Note: The gold company share price is noted on 6th February 2024. The list of best gold stocks in India are filtered on the basis of their Fundamental Score (high to low).
Sector – Precious Metals, Jewellery & Watches
Fundamental Score: It is a smallcase proprietary score between 1 and 10 which is assigned to stocks listed on NSE. The score helps rank the stock versus all other stocks in the respective sector. Higher the score, the better the company. The score is calculated taking into consideration factors like valuation, profitability, market share growth, financial health and earnings growth of the company.
Best gold ETFs in India (2024)
| ETF Name | Market Cap (Rs. in cr.) | Close Price (Rs.) | 5Y CAGR (%) | Expense Ratio |
| IDBI Gold Exchange Traded Fund | 95.12 | 5,703.05 | 13.07 | 0.41 |
| Aditya BSL Gold ETF | 353.23 | 56.13 | 12.83 | 0.54 |
| Invesco India Gold Exchange Traded Fund | 74.22 | 5,537.35 | 12.82 | 0.55 |
| Axis Gold ETF | 319.17 | 53.17 | 12.73 | 0.56 |
| Kotak Gold Etf | 1,984.14 | 53.05 | 12.72 | 0.55 |
| SBI-ETF Gold | 2,644.09 | 54.53 | 12.69 | 0.65 |
| ICICI Prudential Gold ETF | 1,905.05 | 54.66 | 12.64 | 0.5 |
| HDFC Gold Exchange Traded Fund | 1,906.09 | 54.58 | 12.45 | 0.59 |
| UTI Gold Exchange Traded Fund | 651.54 | 53.10 | 12.44 | 0.46 |
| Nippon India ETF Gold BeES | 5,168.88 | 52.98 | 12.42 | 0.79 |
Note: The data is from 6th February 2024. The list of best gold ETFs are filtered using the following parameters on Tickertape Stock Screener:
- Sector: ETF > Gold
- 5Y CAGR: Sort from high to low
- Expense ratio
Best gold mutual funds in India (2024)
| Mutual Fund Name | AUM (Rs. In cr.) | CAGR 3Y (%) | Expense Ratio |
| LIC MF Gold ETF FoF | 46.65 | 9.37 | 0.26 |
| Aditya Birla SL Gold Fund | 289.72 | 9.04 | 0.15 |
| SBI Gold | 1,512.72 | 8.94 | 0.1 |
| Axis Gold Fund | 374.50 | 8.90 | 0.17 |
| ICICI Pru Regular Gold Savings Fund | 760.49 | 8.83 | 0.09 |
| HDFC Gold Fund | 1,705.43 | 8.80 | 0.18 |
| Quantum Gold Saving Fund | 96.55 | 8.69 | 0.06 |
| Nippon India Gold Savings Fund | 1,595.33 | 8.67 | 0.13 |
| Invesco India Gold ETF FoF | 63.66 | 8.65 | 0.2 |
| Kotak Gold Fund | 1,601.84 | 8.62 | 0.15 |
Note: The data is from 6th February 2024. The list best gold mutual funds are filtered using the following parameters on Tickertape Mutual Fund Screener:
- Category: Commodity > FoFs Gold
- Plan: Growth
- 3Y CAGR: Set from high to low
- Expense ratio
Benefits of investing in gold stocks
- The gold demand in India witnessed an upward trend, with a 10% surge recorded in Q3, reaching 210 tonnes. To fulfil the growing demand, the gold companies in India are constantly innovating and producing gold ornaments.
- Investing in gold stocks allows you to invest in companies that deal in gold, which can act as a hedge against inflation.
- Considering the long-term investment, major currencies have consistently lost value compared to gold over extended periods.
- In recent years, the gold sector stocks have showcased consistent growth, outperforming notable sectors in Nifty.
- In the past year, the best gold stocks in India have recorded double-digit growth.
Factors to consider before investing in gold stocks
There are certain things to keep in mind before investing in the gold stocks are as follows –
Investment strategy
There are four ways you can invest in gold – physical gold, gold stocks, gold ETFs, and gold MFs. Depending on your investment strategy, future plans, goals, and financial plan, opt for the option that suits you and your needs well. Conduct thorough research and weigh the pros and cons of each option.
Tax implications
Similar to any other equity-oriented investment, gold stocks have the same rules. Short-term capital gains are taxed at 15% along with the applicable cess, whereas long-term capital gains are taxed at 10%, along with the applicable cess. Moreover, if the long-term capital gain is more than Rs. 1 lakh, it is exempt from taxes.
Volatility and liquidity
With the rising geopolitical tension, spiralling inflation and chances of a global recession, the times are uncertain. However, over the last 5 yrs, despite the rise in inflation rates, gold prices have doubled. But note that, the increase in gold prices have little or no impact on the performance of gold stocks in India. Hence, perform a thorough analysis against the volatility and liquidity of the funds.
Conclusion
Gold is one of the favourite metals in India and is likely to remain one for the foreseeable future. However, it has now become easy to invest in the popular metal with more options available such as gold stocks, ETFs and mutual funds. Therefore, to easily invest in gold equities, you can head to Tickertape Stock Screener and perform due diligence (which is essential before investing in any equity mode) with over 200 filters.
FAQs
Are gold and stock markets closely related?
Which gold related stocks in India have performed very well in January 2024?
– Kanani Industries Ltd
– Moksh Ornaments Ltd
– Radhika Jeweltech Ltd
– Bhakti Gems and Jewellery Ltd
Note: The stocks are filtered using ‘Tickertape Stock Screener’ and listed based on their 1-month return.
Which gold company in share market has the highest market capitalisation?
What are sovereign gold bonds?
Which is the famous gold company in India listed on NSE?
Which gold stock in India is heavily traded on NSE?
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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