Scripwise
Mutual Funds

Gold ETF Price vs Gold Rate: Why NAV Lags Slightly

Prateek Desai · Content Lead
Published · 2 min read

In short

  • Gold BeES recorded a fall of 2.06% in its NAV on 2 November 2026, and the gold rate moved in the same direction on that day.
  • From 1 April 2026, mutual funds value the gold held by ETFs using domestic spot prices polled and published by recognised stock exchanges.
  • Earlier, the funds had started from the LBMA AM fixing price and then adjusted it for currency, transport, customs duty and taxes.
  • Nippon India Mutual Fund pages show a small and steady difference between the Gold BeES NAV and the Domestic Price of Gold, and AMFI is to prescribe a uniform valuation policy.
Jump to a section (2)

The NAV of Nippon India Gold BeES was Rs 112.6545 on 2 November 2026, which was a fall of 2.06% from the previous NAV. The gold rate moved in the same direction that day.

The NAV of a gold ETF is derived from the value of the physical gold held by the fund, and Gold BeES follows the domestic price of gold as its benchmark. As the metal becomes cheaper or costlier in the domestic market, the NAV changes along with it on each trading day.

On 30 September 2026, the NAV of the same fund was Rs 121.3956, according to Nippon India Mutual Fund. Many holders are now comparing that figure with the latest one.

What changed on 1 April 2026

Under a circular dated 26 February 2026, mutual funds must now value the physical gold held by gold ETFs using polled domestic spot prices published by recognised stock exchanges. These are same prices that are used to settle physically delivered gold derivatives.

Earlier, the funds had started from the LBMA AM fixing price, and then adjusted it for currency conversion, transport, customs duty, taxes and a notional premium or discount to arrive at a domestic value.

SEBI's consultation paper of July 2025 had said that this method produced differential valuations, because the domestic benchmarks were different and the pricing adjustments were not made with the same frequency. As per the regulator, exchange spot prices will remove the need for subjective premium or discount adjustments, since they are polled from domestic participants.

The Association of Mutual Funds in India (AMFI), in consultation with SEBI, is to prescribe a uniform valuation policy for all the asset management companies.

Why the fund still trails the benchmark

The fund pages of Nippon India Mutual Fund show a small and steady difference between Gold BeES and the Domestic Price of Gold.

Tracking error is also seen in other funds.

For how consistently all the asset management companies apply the new valuation rule, the uniform policy that AMFI is to prescribe with SEBI is the item to watch.

gold etf pricegold etf navgold rate todaygold etf vs gold ratesebi gold etf valuationgold beestracking errordomestic price of gold

Frequently asked questions

How is the NAV of a gold ETF decided?

It is derived from the value of the physical gold held by the fund, so it changes along with the domestic gold price.

Why does a gold ETF give lower returns than the gold price?

The costs of running fund and tracking differences create a small gap between the fund and its benchmark.

What is the new SEBI valuation rule for gold ETFs?

Funds now use polled domestic spot prices from recognised stock exchanges to value their physical gold.

Sources & credits

Facts and figures in this article draw on these sources. All writing is our own.

Share this article

XLinkedInFacebookWhatsApp

About the author

Prateek Desai

Prateek Desai

Content Lead New Delhi

Covers the economy, policy and financial markets, turning complex developments into simple, practical stories.

  • Markets
  • Business
  • Personal Finance

More articles by Prateek →

Screen stocks yourself

Run quality filters on 5,000+ NSE & BSE companies with Scripwise, free.

Keep reading