Diwali 2026, Samvat 2083 investment guide: Gold ETFs vs NSE Gold EGRs — Where should you invest your money? Experts view

With Diwali 2026 and Samvat 2083 approaching, investors looking to add gold to their portfolios have multiple options beyond buying physical gold jewellery or coins.

Gold Exchange-Traded Funds (ETFs) and Electronic Gold Receipts (EGRs) are two exchange-traded alternatives that allow investors to gain exposure to physical gold without having to store it themselves. However, the two instruments differ in how they are structured, traded, and redeemed.

So, how do Gold ETFs and NSE Gold EGRs differ, and which option should investors consider this Diwali? Here's what experts suggest.

A Gold ETF represents an investor's ownership of units in a mutual fund scheme that tracks domestic gold prices and is backed by physical gold. These units can be bought and sold on stock exchanges, much like shares. According to AMFI data, 26 Gold ETFs collectively received inflows of ₹4,451 crore in September 2026.

EGRs, on the other hand, are electronic receipts representing ownership of physical gold deposited in a regulated vault. According to the NSE Market Pulse October 2026 report, the National Stock Exchange (NSE) commenced trading in the EGR segment in May 2026.

NSE offers EGR products in 999 and 995 gold purity across six denominations: 10 milligrams, 100 milligrams, 1 gram, 10 grams, 100 grams, and 1 kilogram. Each EGR is backed by physical gold, with provisions for conversion of electronic receipts into physical gold (or vice versa).

Sachin Kabra, Co-founder, Foliyo.ai, said an ETF investor owns units in a fund tracking gold prices, while an EGR investor owns a receipt representing gold held in a regulated vault. Both can be bought through an enabled broker and held in demat form.

ETF purchases typically start at one unit, while NSE lists EGR denominations starting at 10 mg, in 995 and 999 purity. The minimum quantity for physical withdrawal can be larger than the trading denomination.

In EGRs, existing jewellery cannot simply be credited to a demat account. It first needs to be refined into eligible standard gold, accepted by the vault manager, and then converted into electronic receipts. For withdrawal, the investor follows the depository process, pays applicable charges, and receives gold against cancellation of the receipts.

“ETF investors normally sell their units for cash; physical redemption is subject to the scheme’s eligibility and large-lot requirements,” he added.

Since its launch, the segment has recorded a gradual increase in trading activity. According to an NSE report, the EGR segment recorded a cumulative traded quantity of over 5,900 EGR units, with a total traded value of approximately ₹93.30 crore up to 16 October 2026.

Kabra said, “EGRs are not just for traders. Long-term investors can consider them, but should check storage costs, broker access, and actual trading liquidity. The reported turnover shows participation, but does not tell an investor how easily their particular holding can be sold.”

Kabra said, “For most retail investors seeking gold exposure in their portfolio, a Gold ETF is generally the simpler choice.”

Eshaan Lazarus, Founder & CEO, 021 Trade, said, “The average daily trading volume of Gold ETFs in India is around ₹200–300 crore. Therefore, there is little reason to experiment with a relatively new asset class (Gold EGR) unless an investor specifically prefers ownership of physical gold.”

“For ETFs, compare expenses, tracking performance, liquidity, and the market price against indicative NAV. For EGRs, compare trading spreads, storage costs, and the full cost and convenience of physical withdrawal,” Kabra suggested.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

Get Latest real-time updates

Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

HomeMoneyPersonal FinanceDiwali 2026, Samvat 2083 investment guide: Gold ETFs vs NSE Gold EGRs — Where should you invest your money? Experts view

✕

Wait for it…

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.