Nippon India ETF Gold BeES (NSE: GOLDBEES) is India's largest and most heavily traded gold ETF. This review covers what it holds, how closely it follows gold, what its fee costs against cheaper rivals, and when Nippon's gold fund of funds is the simpler choice. It explains the fund; it does not tell you whether to buy it.
Quick Facts
| Item | Detail |
|---|---|
| NSE symbol | GOLDBEES |
| Launched | 8 March 2007 |
| Assets (AUM) | ₹58,629 crore (31 August 2026), the largest gold ETF in India |
| Expense ratio | 0.81% a year (28 September 2026) |
| What one unit holds | About 0.01 gram of gold; NAV ₹121.22 on 28 September 2026 |
| Holdings | 98.47% physical gold, 1.53% cash (31 August 2026) |
| Benchmark | Domestic price of gold |
| Fund manager | Vikram Dhawan (since February 2022) |
| Exit load | None |
| Minimum investment | 1 unit on the exchange |
Performance
Nippon's factsheet reports these returns to 31 August 2026:
| Period | Gold BeES | Domestic gold price (benchmark) |
|---|---|---|
| 1 year | 49.70% | 51.77% |
| 3 years (a year) | 36.07% | 37.77% |
| 5 years (a year) | 25.46% | 26.88% |
| Since launch in 2007 (a year) | 14.28% | 15.42% |
Measured to 28 September 2026 from AMFI NAVs, the one-year return is 29.06%: the start date moved past a sharp rally in September 2025. Gold had an exceptional run, but these are not normal long-run numbers; the since-launch figure of about 14% a year is a better guide to what gold has delivered over two decades.
The 2026 fall
Gold BeES's NAV peaked at ₹144.57 on 29 January 2026 and fell 22% to ₹112.36 by 23 March, in the same sell-off that took silver down 44%. It has since recovered to be up about 10% for 2026.
What is the Gold BeES expense ratio?
Gold BeES (NSE: GOLDBEES) has a total expense ratio of 0.81% a year, according to the expense-ratio data Nippon India reports to AMFI for 30 September 2026. An ETF has only one plan, so there is no separate direct-plan rate. The fee comes out of the NAV every day: on ₹1 lakh held for a year it works out to about ₹810.
The expense ratio is only part of what you lose against gold. Tracking error shows how much the gap moves around; tracking difference, below, shows what it has actually cost.
How Well Does It Track Gold?
Nippon reports a tracking error of 0.41% (as of 25 September 2026), in line with other large gold ETFs. The fund trailed its benchmark by 2.07 percentage points over one year and about 1.2–1.4 points a year over five and ten years. That gap is more than the 0.81% fee alone: the fund also holds some cash, which earns nothing while gold rises. It is the price of the ETF's costs, and it is why the fee matters.
The Real Trade-Off: Fee vs Liquidity
| Fund | Expense ratio | AUM (₹ Cr) | Avg daily NSE traded value |
|---|---|---|---|
| Nippon India ETF Gold BeES | 0.81% | 58,629 | ₹300 crore |
| SBI Gold ETF | 0.65% | 27,085 | ₹70 crore |
| ICICI Prudential Gold ETF | 0.49% | 28,325 | — |
| HDFC Gold ETF | 0.59% | 24,417 | — |
| Mirae Asset Gold ETF | 0.35% | 3,530 | — |
AUM as of 31 August 2026; expense ratios checked late September 2026; traded value averaged over 28 August to 28 September 2026.
Gold BeES is the most expensive large gold ETF: 0.46 percentage points a year more than the cheapest. On ₹5 lakh held for ten years, that gap adds up to tens of thousands of rupees. In exchange you get by far the deepest market: about four times SBI Gold ETF's daily trading, so large orders go through close to fair value. If you buy small amounts and hold for years, a cheaper ETF usually wins; if you move large sums in and out, Gold BeES's liquidity can be worth paying for. All 14 large gold ETFs are compared in our gold ETF guide, and there is a head-to-head in our SBI Gold ETF review.
Gold BeES or Nippon India Gold Savings Fund?
Nippon India Gold Savings Fund is a fund of funds that invests in Gold BeES, so you can buy it like any mutual fund, without a demat account.
| Gold BeES (ETF) | Gold Savings Fund (Direct) | Gold Savings Fund (Regular) | |
|---|---|---|---|
| Demat needed | Yes | No | No |
| Fees | 0.81% | 0.06% on top of Gold BeES's 0.81% | 0.25% on top of Gold BeES's 0.81% |
| Exit load | None | 1% if sold within 15 days | 1% if sold within 15 days |
| Minimum / SIP | 1 unit | ₹100 | ₹100 |
| 1-year return to 28 Sep 2026 | 29.06% | 28.42% | 28.14% |
| Long-term for tax after | 12 months | 24 months | 24 months |
The fund of funds trailed the ETF by about 0.6 points over the past year. Its own fee is tiny, but it inherits Gold BeES's 0.81%, so it is not a cheap way to own gold, just a convenient one. If you want gold through a fund of funds and cost matters, compare it with FoFs built on cheaper ETFs.
How It Is Taxed
- Gold BeES: for units sold on or after 1 April 2025, gains after more than 12 months are taxed at 12.5% without indexation; within 12 months, at your slab rate.
- Gold Savings Fund: the same 12.5%, but only after more than 24 months.
- Gold is not equity, so the ₹1.25 lakh yearly exemption does not apply.
For NRIs
NRIs can buy Gold BeES through an NRE/NRO-linked demat and trading account. US residents should note that Indian ETFs are generally treated as PFICs by the IRS; read our PFIC guide and see the NRI planning hub.
The Bottom Line
Gold BeES is the default gold ETF in India for good reason: it is the biggest, one of the longest-running and by far the easiest to trade in size. But it is also the priciest of the large gold ETFs. Choose it if you trade large amounts or value liquidity above all; for small, long-term purchases, a cheaper gold ETF will usually leave you with more.
This review explains how the fund works and what it costs. It is not a recommendation to buy or sell.