Top Gold ETF vs Top Index Mutual Fund 10-year Return Calculator: Which has given higher amount on Rs 10,000 monthly investment for 10 years

A gold ETF (exchange-traded fund) is a type of mutual fund that trades in the share market. They track the price of domestic physical gold and are represented by 99.5 per cent pure gold bars. One Gold ETF unit is equal to 1 gramme of gold. Investment in gold ETFs saves one from the hassle of keeping physical gold, and spending money on its making charges. 

Unlike physical gold, whose price can vary from one city to another, the price of ETF remains the same everywhere. The price of its net asset value (NAV) keeps changing during trading hours and is fixed at the end of the trading session until the next session begins. 

Since gold ETFs track the price of physical gold, they are also known to give stable returns in the long run. They also have a low expense ratio, so the investors don't have to pay much to manage them.

An index mutual fund is an equity mutual fund that tracks the performance of an index. E.g., if it is following the Nifty 50 index, it will have the same stocks in its portfolio as the index has. If a company moves out of the index and a new company enters, the index fund manager will also change its portfolio's combination in the same proportion. 

Since the fund manager just needs to track the index, these funds are known as passive funds. That's precisely the reason these funds have a low expense ratio. Index funds can be a good choice for investors with a long-term investment horizon.

The top gold ETF in terms of highest annualised SIP returns in 10 years is Kotak Gold ETF.

The fund has given 17.56 per cent annualised SIP returns in the 10-year period.
It has AUM of Rs 101 crore, while its NAV is Rs 57.3541.  
Benchmarked against NIFTY Next 50 TRI, the fund has given 16.11 per cent annualised returns since its launch in January 2013.

At an expense ratio of 0.32 per cent, the fund has Rs 200 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment. 
The fund has 66.93 per cent of its investments in large cap stocks. 
In its portfolio of 50 stocks, the fund has Vedanta, HAL, Tata Power, InterGlobe Aviation, and PFC as the main investments.

The gold ETF has given 13.05 per cent annualised SIP returns in the 10-year period.
It has AUM of Rs 4,912 crore, while its NAV is Rs 66.4315.  
Benchmarked against the domestic price of physical gold, the ETF has given 12.44 per cent annualised returns since its inception in July 2007.

At an expense ratio of 0.55 per cent, the ETF has Rs 100 as the minimum investment. 
The fund has 96.52 per cent of its investments in commodities and 3.48 per cent in cash and cash equivalent. 

A Rs 10,000 monthly SIP in the LIC MF Nifty Next 50 Index Fund - Direct Plan has grown to Rs 30,17,199 in the 10-year time frame.

A Rs 10,000 monthly investment in Kotak Gold ETF has grown to Rs 23,69,282 in the 10-year period.