Gold Returns
SGB vs Gold ETF vs physical gold — returns & tax compared
Gold Type
Gold 10-yr CAGR in India ~10–12%
3yr+ = LTCG with indexation. SGB 8yr = exempt.
Income Tax Slab
Gold Value Growth — 10 Years at 10% p.a.
Cost & Tax Analysis
Purchase amount
₹1.00 L
Total cost basis
₹1.00 L
Gold value after 10 years
₹2.59 L
Capital gains tax
LTCG (held 10yr): 20% with indexation (5% inflation est.)
₹20,069
Post-tax total value
₹2.39 L
Wealth multiple (on cost basis)
2.59×
Gold Investment Guide
→ SGB is the best form of gold investment: 2.5% annual interest + price appreciation + maturity redemption is FULLY EXEMPT from capital gains.
→ Physical gold has high entry costs (3% GST + 8–25% making charges). Actual gold content is also less than face value in jewellery.
→ Gold ETF: no making charges, traded like stocks. LTCG after 3yr: 20% with indexation. STCG: at slab rate.
→ Premature SGB exit (after 5yr, before 8yr): eligible for LTCG exemption if sold on exchange or through RBI window.
→ Gold is a hedge, not an income asset. Ideal allocation: 5–15% of portfolio for diversification.
Invest in Gold ETF or SGB — no making charges.
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FAQ
Gold Returns — FAQ
Common questions about this calculator
SGBs are most tax-efficient — capital gains are exempt if held to maturity (8 years) + 2.5% annual interest. Gold ETFs are more liquid but taxed at 12.5% LTCG.
Calculations are approximate and for educational purposes only. Excludes surcharge for income above ₹50L. Consult a Chartered Accountant for personalised tax advice.