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Gold Mutual Funds

Find here some best Gold fund to invest

  • Annual Returns 19.35%
  • Average Risk High
  • Total Funds 15

What is Gold Mutual Fund?

Gold mutual funds are mutual funds that invest in gold-related assets like gold ETFs (Exchange-traded funds) and stocks of companies engaged in gold mining, processing, and marketing. It gives an affordable option to own it without buying the actual gold. There are two best ways to invest in gold funds, SIP or lumpsum to make stable returns in the long term.

  • The average returns of gold mutual funds over 5 years range between 13-14%
  • Gold funds have medium volatility and medium risk.
  • The best-recommended investment duration is 5-7+ years.
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Top Performing Gold Funds in India for High Returns

AMC List

  • Kotak
  • Aditya Birla Sun Life
  • ICICI
  • Tata
  • HDFC
  • SBI
  • UTI
  • Nippon
  • Sundaram
  • Canara
  • Invesco
  • Axis
  • Baroda BNP Paribas
  • DSP
  • EDELWEISS
  • Franklin
  • HSBC
  • LIC
  • Mirae Asset
  • Motilal Oswal
  • Mahindra
  • PGIM
  • WOC
  • Bandhan
  • 360 One
  • Bajaj Finserv
  • Quant
  • Parag Parikh
  • ITI

Minimum SIP Amt.

  • ₹100 - ₹500
  • ₹500 - ₹1000
  • ₹1000 - ₹5000

Fund Option

  • Growth
  • Dividend
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Snapshot

Returns

Risk

Information

NAV Details

Compare Funds

Lumpsum 3Y P.a 15.21%
SIP 3Y P.a. 16.2%
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Lumpsum 3Y P.a 15.32%
SIP 3Y P.a. 16.15%
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Lumpsum 3Y P.a 15.14%
SIP 3Y P.a. 16.16%
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Lumpsum 3Y P.a 14.73%
SIP 3Y P.a. 16.19%
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Lumpsum 3Y P.a 15.38%
SIP 3Y P.a. 16.37%
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Lumpsum 3Y P.a 15.28%
SIP 3Y P.a. 16.27%
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Lumpsum 3Y P.a 14.94%
SIP 3Y P.a. 16.11%
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Lumpsum 3Y P.a 15.14%
SIP 3Y P.a. 16.17%
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Lumpsum 3Y P.a 15.14%
SIP 3Y P.a. 16.17%
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Lumpsum 3Y P.a 15.07%
SIP 3Y P.a. 16%
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Short Term

Long Term

SIP

Rolling Term

1 Week 1.25%
1 Month -0.01%
3 Months -0.22%
6 Months 6.14%
1 Year 19.98%
Invest
1 Week 1.74%
1 Month -0.06%
3 Months 0.92%
6 Months 6.56%
1 Year 19.8%
Invest
1 Week 1.44%
1 Month 0.22%
3 Months 1.05%
6 Months 6.04%
1 Year 19.69%
Invest
1 Week 1.29%
1 Month 0.19%
3 Months 0.97%
6 Months 6.22%
1 Year 19.61%
Invest
1 Week 1.27%
1 Month 0.32%
3 Months 0.96%
6 Months 6.31%
1 Year 19.6%
Invest
1 Week 1.32%
1 Month 0.42%
3 Months 0.92%
6 Months 6.23%
1 Year 19.47%
Invest
1 Week 1.17%
1 Month 0.14%
3 Months 0.6%
6 Months 6.18%
1 Year 19.32%
Invest
1 Week 1.4%
1 Month 0.36%
3 Months 1.06%
6 Months 6.26%
1 Year 19.3%
Invest
1 Week 1.4%
1 Month 0.36%
3 Months 1.06%
6 Months 6.26%
1 Year 19.3%
Invest
1 Week 1.2%
1 Month 0.17%
3 Months 0.88%
6 Months 6.13%
1 Year 19.22%
Invest
2 Years 16.73%
3 Years 15.21%
5 Years 12.81%
Annual Rt 5.92%
Invest
2 Years 17.05%
3 Years 15.32%
5 Years 13.08%
Annual Rt 5.48%
Invest
2 Years 16.7%
3 Years 15.14%
5 Years 13.12%
Annual Rt 6.56%
Invest
2 Years 16.48%
3 Years 14.73%
5 Years 13.04%
Annual Rt 19.13%
Invest
2 Years 16.75%
3 Years 15.38%
5 Years 13.3%
Annual Rt 6.04%
Invest
2 Years 17.27%
3 Years 15.28%
5 Years 13.48%
Annual Rt 6.09%
Invest
2 Years 16.35%
3 Years 14.94%
5 Years 12.97%
Annual Rt 6.26%
Invest
2 Years 16.62%
3 Years 15.14%
5 Years 13.05%
Annual Rt 7.95%
Invest
2 Years 16.62%
3 Years 15.14%
5 Years 13.05%
Annual Rt 7.95%
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2 Years 16.58%
3 Years 15.07%
5 Years 13.13%
Annual Rt 6.3%
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Min SIP ₹500
Min Lumpsum ₹1000
Expense Ratio 0.45%
Fund Manager Krishna Venkat Cheemalapati
Launch Date 05-Dec 2011
Invest
Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 0.67%
Fund Manager Sumit Bhatnagar
Launch Date 14-Aug 2012
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.39%
Fund Manager Manish Banthia
Launch Date 11-Oct 2011
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.5%
Fund Manager Abhishek Bisen
Launch Date 25-Mar 2011
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 0.42%
Fund Manager Raviprakash Sharma
Launch Date 12-Sep 2011
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.5%
Fund Manager Aditya Pagaria
Launch Date 20-Oct 2011
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.52%
Fund Manager Pranav Gupta
Launch Date 20-Mar 2012
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.35%
Fund Manager Himanshu Mange
Launch Date 07-Mar 2011
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.35%
Fund Manager Himanshu Mange
Launch Date 07-Mar 2011
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.49%
Fund Manager Arun Agarwal
Launch Date 02-Nov 2011
Invest
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Comparison of Top Gold Funds

Gold Funds Return Calculator

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  • Invested Amount
  • Estimated Returns

  • Invested Amount ₹43,855
  • Interest Earned ₹6,145

Benefits of SIP in Gold Funds

The gold funds provide investment into a broader market. Here are some merits of investing in gold funds or gold ETFs:

  • High Liquidity: It means you can easily buy and sell these funds in comparison to real gold. This flexibility to redeem investments works as an emergency fund in the hour of need. You can easily sell your units of gold funds directly through the AMC of your scheme.
  • Safe Investment: These funds are protected by the SEBI (Securities and Exchange Board of India). It makes them the most trusted and safest investment option in mutual funds.
  • Cost-efficient: Gold funds have cheaper transaction and maintenance costs. If you regularly do SIP in gold Mutual Funds, you invest Rs.500, which is more affordable than the actual gold. This makes them pocket-friendly and increases total returns on your gold investments.
  • Convenient to Manage: Unlike physical gold, which needs storage space and security, gold funds are secured digitally through a Demat account. Their simple and affordable nature makes gold ETFs the best alternative to regular equity funds.

List of 3 Best Gold Mutual Funds

Let’s have a closer look at the best gold funds to start your SIP:

  1. SBI Gold Fund: After being launched on 30th September 2011, SBI Gold Fund is amongst the oldest schemes in the domestic category. It holds an impressive AUM (Asset Under Management) at Rs.2, 025 Crores as of 30 August 2024. In addition, the minimum amount to start a SIP in it is Rs.5000.
  2. HDFC Gold Fund: This scheme was introduced on 5th November 2011, with an outstanding AUM of Rs.2290 Crores. Moreover, you can add HDFC Gold Fund to your portfolio with a SIP at just Rs.100. It would be a smart choice as it has given a 31.45% annualized return in 1 year. This makes it an affordable and valuable addition to a stable investment portfolio.
  3. ICICI Prudential Gold Savings FOF: The ICICI Prudential Gold Savings FOF invests in Gold ETFs and gold-related assets. Being launched on 1st October 2011, it offers SIP investments at just Rs.100. This affordability makes it accessible to a wide range of investors.

Use a simple gold SIP Calculator tool and get your estimated returns at your fingertips.

How to Invest in Gold Funds via MySIPonline?

The following is a step-by-step guide to investing in the best gold mutual funds:

  • Step 1: Open a free account at MySIPonline and complete your KYC (Know Your Customer) process.
  • Step 2: Step up your SIP to auto-debit for regular deductions.
  • Step 3: Pick a Gold fund that fits your goals or ask our financial expert for suggestions.
  • Step 4: Add the chosen fund to your cart, select the SIP date and complete payment.
  • Step 5: Track your fund’s performance and review transaction details via your personalized dashboard.

Investing in mutual funds via SIP is simple, with fast KYC and attentive, user-friendly solutions.

What is the Disadvantage of Gold Mutual Funds?

Here are some limitations to know before investing in gold funds:

Gold Funds Vs Gold ETF: The expense ratio of gold ETFs is lower making it easy to buy and sell as compared to gold funds. Investing in gold funds is similar to buying gold itself.

Market Risk: Your returns are affected by the changing prices of gold. For example, a change in the US dollar value influences the gold price, thereby affecting the returns of gold mutual funds.

Low Returns than Equity Funds: Gold funds give lower returns than equity funds. As these are volatile in nature, there are better chances to make higher returns from other Mutual Funds.

To sum up, gold mutual funds offer a safe and secure way towards a diverse portfolio.

Frequently Asked Questions

Who should invest in Gold Mutual Funds?
Gold funds are suitable for the investors who can digest high risk in search for higher returns. Moreover, these funds are not suitable for the investors who are stepping in the finance market with a short term investment perspective as they might end up delivering negative returns.
What is the minimum investment required for investing in Gold funds?
The minimum investment depends from one scheme to another. In general, for lumpsum investment the minimum investment can range from Rs. 500 to Rs. 5000. Whereas, in case of SIP, the range may vary between Rs. 500 to Rs. 1000. For authentic information, never forget to check the scheme related documents.
What is the investment philosophy followed by Gold companies?
The fund manager of Gold fund targets the best small sized companies having the potential to generate excellent gains in the future. Such companies do not have much resources as the large cap or mid cap companies but have high potential to outperform many big companies.
Why to invest in Gold funds?
Gold funds have more tendency of providing exceptional returns than the other categories of funds. Moreover, they can also be a suitable option for providing diversification to your portfolio.
How risky are Gold funds?
Gold funds are one of the riskiest mutual funds. But at the same time rewards are also high. Therefore, an investor who is willing to expose his corpus towards risk for fetching higher returns should invest in Gold funds.
Are Gold Funds for long term investment?
Yes, Gold funds are a suitable choice for generating long term capital appreciation. Moreover, in short term these funds can cause double digit losses to the investors. Thus, always maintain a long term investment perspective while investing in Gold mutual funds.
What is the benchmark of Gold Fund?
Benchmark is a standard with which a mutual fund competes in terms of growth & performance. Different Gold funds have different benchmark. Thus, read the mutual fund document carefully to know the benchmark.
What are the taxes applied on Gold Mutual Funds?
Gold funds are eligible for two types of taxes- STCG (Short Term Capital Gain) and LTCG (Long Term Capital Gain). STCG is the capital gain generated on the units which are hold for up to 1 year. The STCG tax imposed by the Government of India is 15%. LTCG is the profit generated on the units which are hold for more than one years. The LTCG levied is 10% for the profit above Rs. 1 Lakh.

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