Gold BEES vs Gold ETF: Which Is Better?

Gold has always been a big deal in Indian households. Whether it’s for weddings or Diwali or just saving money safely, we love gold. But now, instead of buying gold jewellery or coins, many Indians are turning to digital gold investments like Gold BEES and Gold ETFs. Both are smart ways to invest in gold without actually holding gold in your hand. But Gold BEES vs Gold ETF: Which is better? Let’s simplify and compare them.

What are Gold BEES?

Gold BEES is a type of Gold ETF, launched by Nippon India Mutual Fund. It’s listed on the NSE and works just like a stock. When you buy Gold BEES, you're basically investing in real gold, without holding any physical gold. It follows the price of 24K gold (99.5% purity), so its value moves up and down with the gold market.

Key Features of Gold BEES

Backed by real gold (99.5% purity).
Low expense ratio: around 0.5% to 1%.
Minimum investment: Just 1 unit (equal to about 1 gram of gold).
High liquidity: You can buy or sell at any time during market hours.
Traded on: NSE and sometimes BSE, like a regular stock.

Why It’s Popular?

Gold BEES is one of the oldest and most trusted gold ETFs in India. It has high daily trading volume, which means it’s easy to buy and sell quickly without big price gaps.

What are Gold ETFs?

Gold ETFs (Gold Exchange Traded Funds) are digital investment options that track the price of 24K gold. These are offered by many trusted companies like SBI, HDFC, ICICI, Kotak, and more. Just like Gold BEES, these ETFs let you invest in gold without holding it physically, and they trade on stock exchanges like the NSE or the BSE.

Key Features of Gold ETFs

Backed mostly by physical gold (99.5% purity), and sometimes gold-related assets.
The expense ratio is between 0.3% and 1%, depending on the company.
Minimum investment: Just 1 unit (equal to around 1 gram of gold).
High liquidity: You can buy or sell in real time during trading hours.
Traded on NSE or BSE, like a regular stock.

Why People Choose Gold ETFs?

If you want more choices, different fund managers, or want to compare expense ratios, Gold ETFs give you multiple options. You can choose the one that suits your budget or preferred AMC (Asset Management Company).

Which Gives Better Returns?

Both move with the price of gold. So the returns are almost the same.

For example, if the gold price goes from ₹5,500 to ₹6,000 per gram, both Gold BEES and HDFC Gold ETF will rise similarly. But small differences can happen because of:

Expense ratio (some charge more)
Tracking error (how closely they follow gold prices)
Liquidity (how easily you can buy/sell)

In most cases, Gold BEES performs slightly better because it's older, more trusted, and traded more.

Which is Better for Long-Term Investment?

Both are solid if you're investing for 3 years or more. But Gold BEES has a slight edge due to:

Higher trading volume
Lower tracking error
Trusted brand (Nippon India)

If you're new and want something safe, simple, and quick to sell, go with Gold BEES. If you're okay doing research and comparing expense ratios of different ETFs, then you can consider other Gold ETFs too.

Also Read: ETFs vs Mutual Funds: Understanding the Key Differences

Key Difference Between Gold BeES vs Gold ETF

Here are the differences between Gold BeES vs Gold ETF:

Feature	Gold BeES	Gold ETF
Full Form	Gold Benchmark Exchange Traded Scheme	Gold Exchange Traded Fund
Branding	The branding of this is a specific product name (Gold BeES)	The branding is a generic category (Gold ETFs)
Issuer	The issuer of this instrument is Nippon India Mutual Fund.	The issuers of this instrument are Multiple issuers (SBI, HDFC, ICICI, etc.).
Tracking Error	The tracking error is slightly lower due to a single issuer focus	This varies by fund house
Expense Ratio	It's around 0.5%–1%	It varies by issuer (0.3%–1%)
Availability	This is only one Gold BeES scheme	This is Multiple Gold ETF options available.
Historical Returns	The historical return is in line with gold prices	This depends on fund performance

Conclusion

In Conclusion, if you're still asking, “Gold BEES vs Gold ETF: Which is better?”, here’s the answer: Gold BEES is the easiest, most trusted, and beginner-friendly way to invest in gold through the stock market. Want options and lower fees? Compare other Gold ETFs. But if you just want to start now without overthinking, Gold BEES is the way to go.

About the Author

Saniya

I'm a finance content writer with a BBA in FinTech, passionate about simplifying money matters for everyday Indians. I break down complex topics like investments, savings, and digital finance into easy, relatable content. My goal is to help you in a way that’s easy to understand, jargon-free, and actually useful in real life.

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