Top Gold SIP ETF vs Top Large Cap SIP Mutual Fund in 5 Years: Which has given higher return on Rs 15,000 monthly investment; see calculations

Gold ETFs are like any other ETFs that can be traded on a stock exchange. While other ETFs track index, gold ETFs follow the price of physical gold of very high purity. One gold ETF unit is equal to 1 gramme of gold and is represented by 99.5 per cent pure physical gold bars. 

Some of the advantages of investing in gold ETFs can be that there are no storage hassles, and there is also no doubt about the purity of gold. There is no premium or making charges as the ETF is in electronic form. 

Also, when you buy an old gold item, the jeweller can cut making charges, and the holder bears losses. Gold ETFs can be sold any time during market hours, and the holder will get the latest price. 

Large cap mutual funds need to have at least 80 per cent of their investments in large cap stocks, as per Securities Exchange Board of India's classification of mutual funds. This makes them more stable than any other equity mutual fund category. 

Large cap firms are fundamentally strong; their market capitalisation is higher than that of mid- and small-cap firms; their market is vast, so they can face market fluctuations better than mid- and small-cap companies. 

Investors with a long-term investment horizon can invest in large cap mutual funds.

The best gold ETF in terms of highest SIP returns (XIRR) in 5 years is Invesco India Gold ETF FoF Direct-Growth. 
The ETF has given 14.24 per cent annualised SIP returns in the 5-year time frame.
It has assets under management (AUM) of Rs 84 crore, while its net asset value (NAV) as of October 14, 2024, is Rs 22.79.

Benchmarked against the price of physical gold, the ETF has given 6.81 per cent annualised SIP returns since its inception in January 2013.
At an expense ratio of 0.1 per cent, the ETF has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment.

The  best large cap mutual fund in terms of highest SIP returns is Nippon India Large Cap Fund Direct-Growth.
The fund has an asset base of Rs 34,432 crore, while its NAV price is Rs 99.68.

Benchmarked against BSE 100 TRI, the fund has given 17.63 per cent annualised return since its inception in January 2013.
At an expense ratio of 0.67 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment.

A Rs 15,000 monthly SIP in Invesco India Gold ETF FoF Direct-Growth in 5 years, or a total investment of Rs 9 lakh, has grown to Rs 12.86 lakh. 

A Rs 15,000 monthly SIP in Nippon India Large Cap Fund Direct-Growth has grown to Rs 17.95 lakh in the 5-year time frame.