Top Gold ETF vs Top ELSS Mutual Fund: Which of 2 has given higher return on Rs 15,000 monthly SIP investment for 3 years

This is also known as the tax saver mutual fund category. This is the only mutual fund category that provides tax benefits on deposits up to Rs 1.50 lakh in a financial year under Section 80C of the Income Tax Act, 1961. 

These funds have a lock-in period of 3 years. Most ELSS funds are large cap stock-heavy, so they can provide stability amid high-level market fluctuations. Investors with a long-term investment horizon or those looking to save their tax invest in ELSS mutual funds. 

Due to the rise of the share market in the last few years, many ELSS mutual funds have beaten their benchmarks in 3 years.

Gold exchange traded funds (ETFs) can be traded in the share market. Like any other stock, their price rises and falls during the trading session on BSE and NSE. 

Gold ETFs represent physical gold in its dematerialised form. They track the price of 99.5 per cent pure physical gold. One Gold ETF unit is equal to 1 gramme of gold. 

Gold ETFs combine the flexibility of stock investment with the simplicity of gold investments. They can be sold at the stock exchange through the broker using a demat account and trading account.

Motilal Oswal ELSS Tax Saver Fund Direct-Growth is the top-performer ELSS mutual fund. The fund has given 39.65 per cent annualised SIP returns (XIRR) in the 3-year period. 
It has assets under management (AUM) of Rs 3,984 crore, while its net asset value (NAV) is Rs 59.05.
Benchmarked against NIFTY 500 TRI, the fund has given 19.93 per cent annualised returns (CAGR) since its inception in December 2016.

At an expense ratio of 0.65 per cent, the tax saver fund has Rs 500 as the minimum SIP and Rs 1,000 as the minimum lump sum investment.
 

LIC MF Gold ETF FoF - Direct Plan is the top-performer gold ETF in 3 years. It has given 19.19 per cent annualised SIP returns in the 3-year time frame. 
The ETF has an asset base of Rs 57 crore, while its unit price is Rs 21.1968.

Benchmarked against the domestic price of gold, the fund has given 6.57 per cent annualised returns since its launch in January 2013.
With an expense ratio of 0.26 per cent, the gold ETF has Rs 1,000 as the minimum SIP and Rs 5,000 as the minimum lump sum investment.

A Rs 15,000 monthly SIP in the Motilal Oswal ELSS Tax Saver Fund Direct-Growth in 3 years, or a total investment of Rs 5.40 lakh, has swelled to Rs 9.41 lakh.

A Rs 15,000 monthly investment in LIC MF Gold ETF FoF - Direct Plan has grown to Rs 7,15,827 in the 3-year time frame.