+91-22-489139098 Best Gold Mutual Funds 2025
Gold has always been a trusted asset for Indian households — whether as jewellery, coins, or bars — but in recent years, it has also emerged as a core financial asset in investment portfolios.
Why? Because gold has proven to:
- Grow with inflation
- Act as a hedge during financial crises
- Reduce Volatility when stock markets are shaky
In today’s world, you don’t need to buy and store physical gold to benefit from its value. Gold Mutual Funds offer a simple, transparent, and accessible way to invest in gold without the hassles of storage or purity concerns.
Let’s explore why gold funds are popular, how taxation works, the top-performing funds in India, and whether now is the right time to invest.
Why Gold Funds Are Gaining Popularity?
Indians have a deep cultural connection with gold — weddings, festivals, and rituals reinforce this timeless demand. But the shift from physical gold to gold mutual funds is accelerating because of the following advantages:
- Minimum investment (SIP starts as low as ₹100)
- Portfolio diversification (low correlation with stocks)
- No Demat account required
- Liquidity (easy buy/sell through fund house)
- Professional fund management
- Transparent pricing, no storage hassles
How they work:
- Gold Mutual Funds invest in Gold ETFs, which in turn hold physical gold bullion.
- Unlike buying jewellery or coins, you pay no making charges and don’t worry about security.
- Prices are linked to live gold rates, ensuring transparency.
For small-ticket investors, this is one of the most cost-efficient and systematic ways to benefit from gold’s potential.
Taxation on Gold Mutual Funds
Gold Mutual Funds are taxed as non-Equity Funds, meaning their tax rules differ from equity mutual funds:
Short-Term Capital Gains (STCG): If redeemed within 36 months, gains are taxed as per your income tax slab.
Long-Term Capital Gains (LTCG): If held for more than 36 months, gains are taxed at a flat 20% with indexation benefit (updated as per the Finance Act, 2024).
This makes gold funds particularly attractive for long-term investors, as indexation significantly reduces tax liability compared to physical gold.
Fund selection Methodology used to Select 8 Best Gold Funds
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Top Performing Gold Funds to Invest in India (2025)
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) SBI Gold Fund Growth ₹35.1485
↓ -0.12 ₹5,221 19.6 26.6 50.7 31.9 17.1 19.6 IDBI Gold Fund Growth ₹31.3208
↓ -0.03 ₹254 19.6 27.8 51 31.8 17.8 18.7 HDFC Gold Fund Growth ₹35.9165
↓ -0.09 ₹4,915 19.7 26.2 50.7 31.7 17 18.9 Aditya Birla Sun Life Gold Fund Growth ₹34.9533
↓ -0.05 ₹725 19.6 26.9 51.5 31.7 17.2 18.7 Nippon India Gold Savings Fund Growth ₹46.0243
↓ -0.12 ₹3,439 19.8 26.2 50.6 31.6 16.9 19 Kotak Gold Fund Growth ₹46.174
↓ -0.09 ₹3,506 19.5 26.6 50.5 31.5 16.8 18.9 Axis Gold Fund Growth ₹34.9423
↓ -0.04 ₹1,272 19.3 26.4 50.4 31.5 17.3 19.2 ICICI Prudential Regular Gold Savings Fund Growth ₹37.0993
↓ -0.10 ₹2,603 19.3 26.3 50.2 31.5 17.1 19.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Nov 25 Research Highlights & Commentary of 8 Funds showcased
Commentary SBI Gold Fund IDBI Gold Fund HDFC Gold Fund Aditya Birla Sun Life Gold Fund Nippon India Gold Savings Fund Kotak Gold Fund Axis Gold Fund ICICI Prudential Regular Gold Savings Fund Point 1 Highest AUM (₹5,221 Cr). Bottom quartile AUM (₹254 Cr). Top quartile AUM (₹4,915 Cr). Bottom quartile AUM (₹725 Cr). Upper mid AUM (₹3,439 Cr). Upper mid AUM (₹3,506 Cr). Lower mid AUM (₹1,272 Cr). Lower mid AUM (₹2,603 Cr). Point 2 Oldest track record among peers (14 yrs). Established history (13+ yrs). Established history (14+ yrs). Established history (13+ yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (14+ yrs). Point 3 Rating: 2★ (top quartile). Not Rated. Rating: 1★ (upper mid). Top rated. Rating: 2★ (upper mid). Rating: 1★ (lower mid). Rating: 1★ (lower mid). Rating: 1★ (bottom quartile). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 17.15% (upper mid). 5Y return: 17.76% (top quartile). 5Y return: 17.00% (lower mid). 5Y return: 17.17% (upper mid). 5Y return: 16.92% (bottom quartile). 5Y return: 16.82% (bottom quartile). 5Y return: 17.25% (top quartile). 5Y return: 17.05% (lower mid). Point 6 3Y return: 31.90% (top quartile). 3Y return: 31.80% (top quartile). 3Y return: 31.70% (upper mid). 3Y return: 31.67% (upper mid). 3Y return: 31.64% (lower mid). 3Y return: 31.54% (lower mid). 3Y return: 31.53% (bottom quartile). 3Y return: 31.46% (bottom quartile). Point 7 1Y return: 50.75% (upper mid). 1Y return: 51.03% (top quartile). 1Y return: 50.70% (upper mid). 1Y return: 51.54% (top quartile). 1Y return: 50.60% (lower mid). 1Y return: 50.53% (lower mid). 1Y return: 50.37% (bottom quartile). 1Y return: 50.24% (bottom quartile). Point 8 1M return: 2.69% (lower mid). 1M return: 1.52% (bottom quartile). 1M return: 2.64% (lower mid). 1M return: 2.43% (bottom quartile). 1M return: 2.77% (upper mid). 1M return: 2.96% (top quartile). 1M return: 2.99% (top quartile). 1M return: 2.93% (upper mid). Point 9 Alpha: 0.00 (top quartile). Alpha: 0.00 (top quartile). Alpha: 0.00 (upper mid). Alpha: 0.00 (upper mid). Alpha: 0.00 (lower mid). Alpha: 0.00 (lower mid). Alpha: 0.00 (bottom quartile). Alpha: 0.00 (bottom quartile). Point 10 Sharpe: 2.58 (upper mid). Sharpe: 2.38 (bottom quartile). Sharpe: 2.55 (lower mid). Sharpe: 2.66 (top quartile). Sharpe: 2.52 (bottom quartile). Sharpe: 2.58 (top quartile). Sharpe: 2.57 (upper mid). Sharpe: 2.55 (lower mid). SBI Gold Fund
IDBI Gold Fund
HDFC Gold Fund
Aditya Birla Sun Life Gold Fund
Nippon India Gold Savings Fund
Kotak Gold Fund
Axis Gold Fund
ICICI Prudential Regular Gold Savings Fund
Gold Funds having AUM/Net Assets > 25 Crore ordered based on 3 year Calendar year returns.
All the funds mentioned above are ideal, we are giving you detailed analysis of 5 funds.
The scheme seeks to provide returns that closely correspond to returns provided by SBI - ETF Gold (Previously known as SBI GETS). Research Highlights for SBI Gold Fund Below is the key information for SBI Gold Fund Returns up to 1 year are on The investment objective of the Scheme will be to generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund (IDBI GOLD ETF). Research Highlights for IDBI Gold Fund Below is the key information for IDBI Gold Fund Returns up to 1 year are on To seek capital appreciation by investing in units of HDFC Gold Exchange Traded Fund (HGETF). Research Highlights for HDFC Gold Fund Below is the key information for HDFC Gold Fund Returns up to 1 year are on An Open ended Fund of Funds Scheme with the investment objective to provide returns that tracks returns provided by Birla Sun Life Gold ETF (BSL Gold ETF). Research Highlights for Aditya Birla Sun Life Gold Fund Below is the key information for Aditya Birla Sun Life Gold Fund Returns up to 1 year are on The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by Reliance ETF Gold BeES. Research Highlights for Nippon India Gold Savings Fund Below is the key information for Nippon India Gold Savings Fund Returns up to 1 year are on 1. SBI Gold Fund
SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (04 Nov 25) ₹35.1485 ↓ -0.12 (-0.33 %) Net Assets (Cr) ₹5,221 on 31 Aug 25 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.3 Sharpe Ratio 2.58 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹9,322 31 Oct 22 ₹9,704 31 Oct 23 ₹11,658 31 Oct 24 ₹14,955 31 Oct 25 ₹22,348 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Nov 25 Duration Returns 1 Month 2.7% 3 Month 19.6% 6 Month 26.6% 1 Year 50.7% 3 Year 31.9% 5 Year 17.1% 10 Year 15 Year Since launch 9.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 19.6% 2023 14.1% 2022 12.6% 2021 -5.7% 2020 27.4% 2019 22.8% 2018 6.4% 2017 3.5% 2016 10% 2015 -8.1% Fund Manager information for SBI Gold Fund
Name Since Tenure Raviprakash Sharma 12 Sep 11 14.06 Yr. Data below for SBI Gold Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 0.27% Other 99.73% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -101% ₹7,118 Cr 717,924,671
↑ 124,207,431 Net Receivable / Payable
CBLO | -4% -₹255 Cr Treps
CBLO/Reverse Repo | -2% ₹171 Cr 2. IDBI Gold Fund
IDBI Gold Fund
Growth Launch Date 14 Aug 12 NAV (04 Nov 25) ₹31.3208 ↓ -0.03 (-0.09 %) Net Assets (Cr) ₹254 on 31 Aug 25 Category Gold - Gold AMC IDBI Asset Management Limited Rating Risk Moderately High Expense Ratio 0.64 Sharpe Ratio 2.38 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹9,443 31 Oct 22 ₹9,898 31 Oct 23 ₹11,921 31 Oct 24 ₹15,275 31 Oct 25 ₹22,624 Returns for IDBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Nov 25 Duration Returns 1 Month 1.5% 3 Month 19.6% 6 Month 27.8% 1 Year 51% 3 Year 31.8% 5 Year 17.8% 10 Year 15 Year Since launch 9% Historical performance (Yearly) on absolute basis
Year Returns 2024 18.7% 2023 14.8% 2022 12% 2021 -4% 2020 24.2% 2019 21.6% 2018 5.8% 2017 1.4% 2016 8.3% 2015 -8.7% Fund Manager information for IDBI Gold Fund
Name Since Tenure Sumit Bhatnagar 1 Jun 24 1.33 Yr. Data below for IDBI Gold Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 2.75% Other 97.25% Top Securities Holdings / Portfolio
Name Holding Value Quantity LIC MF Gold ETF
- | -99% ₹369 Cr 353,644
↑ 83,600 Treps
CBLO/Reverse Repo | -2% ₹7 Cr Net Receivables / (Payables)
CBLO | -1% -₹4 Cr 3. HDFC Gold Fund
HDFC Gold Fund
Growth Launch Date 24 Oct 11 NAV (04 Nov 25) ₹35.9165 ↓ -0.09 (-0.26 %) Net Assets (Cr) ₹4,915 on 31 Aug 25 Category Gold - Gold AMC HDFC Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.49 Sharpe Ratio 2.55 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-6 Months (2%),6-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹9,330 31 Oct 22 ₹9,704 31 Oct 23 ₹11,649 31 Oct 24 ₹14,906 31 Oct 25 ₹22,227 Returns for HDFC Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Nov 25 Duration Returns 1 Month 2.6% 3 Month 19.7% 6 Month 26.2% 1 Year 50.7% 3 Year 31.7% 5 Year 17% 10 Year 15 Year Since launch 9.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 18.9% 2023 14.1% 2022 12.7% 2021 -5.5% 2020 27.5% 2019 21.7% 2018 6.6% 2017 2.8% 2016 10.1% 2015 -7.3% Fund Manager information for HDFC Gold Fund
Name Since Tenure Arun Agarwal 15 Feb 23 2.63 Yr. Nandita Menezes 29 Mar 25 0.51 Yr. Data below for HDFC Gold Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 1.13% Other 98.87% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Gold ETF
- | -100% ₹6,356 Cr Net Current Assets
Net Current Assets | -1% -₹49 Cr Treps - Tri-Party Repo
CBLO/Reverse Repo | -0% ₹22 Cr 4. Aditya Birla Sun Life Gold Fund
Aditya Birla Sun Life Gold Fund
Growth Launch Date 20 Mar 12 NAV (04 Nov 25) ₹34.9533 ↓ -0.05 (-0.15 %) Net Assets (Cr) ₹725 on 31 Aug 25 Category Gold - Gold AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.51 Sharpe Ratio 2.66 Information Ratio 0 Alpha Ratio 0 Min Investment 100 Min SIP Investment 100 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹9,398 31 Oct 22 ₹9,736 31 Oct 23 ₹11,666 31 Oct 24 ₹14,931 31 Oct 25 ₹22,223 Returns for Aditya Birla Sun Life Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Nov 25 Duration Returns 1 Month 2.4% 3 Month 19.6% 6 Month 26.9% 1 Year 51.5% 3 Year 31.7% 5 Year 17.2% 10 Year 15 Year Since launch 9.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 18.7% 2023 14.5% 2022 12.3% 2021 -5% 2020 26% 2019 21.3% 2018 6.8% 2017 1.6% 2016 11.5% 2015 -7.2% Fund Manager information for Aditya Birla Sun Life Gold Fund
Name Since Tenure Priya Sridhar 31 Dec 24 0.75 Yr. Data below for Aditya Birla Sun Life Gold Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 0.93% Other 99.07% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Gold ETF
- | -100% ₹913 Cr 89,486,826
↑ 9,590,606 Net Receivables / (Payables)
Net Current Assets | -2% -₹15 Cr Clearing Corporation Of India Limited
CBLO/Reverse Repo | -1% ₹11 Cr 5. Nippon India Gold Savings Fund
Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (04 Nov 25) ₹46.0243 ↓ -0.12 (-0.25 %) Net Assets (Cr) ₹3,439 on 31 Aug 25 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.35 Sharpe Ratio 2.52 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (2%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹9,330 31 Oct 22 ₹9,678 31 Oct 23 ₹11,615 31 Oct 24 ₹14,878 31 Oct 25 ₹22,154 Returns for Nippon India Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Nov 25 Duration Returns 1 Month 2.8% 3 Month 19.8% 6 Month 26.2% 1 Year 50.6% 3 Year 31.6% 5 Year 16.9% 10 Year 15 Year Since launch 11% Historical performance (Yearly) on absolute basis
Year Returns 2024 19% 2023 14.3% 2022 12.3% 2021 -5.5% 2020 26.6% 2019 22.5% 2018 6% 2017 1.7% 2016 11.6% 2015 -8.1% Fund Manager information for Nippon India Gold Savings Fund
Name Since Tenure Himanshu Mange 23 Dec 23 1.77 Yr. Data below for Nippon India Gold Savings Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 1.14% Other 98.86% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | -100% ₹4,139 Cr 431,810,511
↑ 28,940,000 Net Current Assets
Net Current Assets | -1% -₹29 Cr Triparty Repo
CBLO/Reverse Repo | -1% ₹21 Cr Cash Margin - Ccil
CBLO | -0% ₹0 Cr Cash
Net Current Assets | -0% ₹0 Cr 00
Top 4 Benefits of Gold Investments
1. Hedge Against Inflation
Gold maintains purchasing power when inflation rises, unlike cash or fixed deposits that lose value.
2. Liquidity
Gold funds can be redeemed quickly through Mutual Fund Houses, making them far more liquid than jewellery or coins.
3. Diversification
Gold prices move differently from stocks and Bonds. In times of equity market stress, gold often provides stability, making it a risk-balancing tool in portfolios.
4. Timeless Asset
Gold has held value for centuries. While returns may not always be explosive, they are steady, making it a safe-haven asset during crises (e.g., COVID-19, 2008 Global Financial Crisis).
Who Should Invest in Gold Mutual Funds?
Gold mutual funds are ideal for:
- Investors without a Demat account.
- Those who want to start with small amounts (SIP from ₹100).
- People looking for diversification against market volatility.
- Investors seeking a long-term hedge against inflation.
They are not meant for overnight profits, but for long-term portfolio balance.
How Invest in Gold Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
Is It the Right Time to Invest in Gold Mutual Funds in 2025?
Short answer: Yes — but with a strategy.
1. Gold Prices & Market Trends
- In 2024, gold touched an all-time high of ₹65,000 per 10g in India.
- Demand rose as investors hedged against inflation and global uncertainty.
- Historically, gold thrives when stocks or bonds underperform.
2. Dollar-Cost Averaging (DCA) / SIP
- The best way to invest is via Systematic Investment plan (SIPs).
- Removes the stress of timing the market.
- Averages out buying costs across highs and lows.
3. Long-Term Role of Gold
- Gold should form 5–15% of a diversified portfolio.
- It’s not about short-term gains but wealth protection over decades.
4. Global Economic Environment
- Rising US interest rates, oil prices, and geopolitical tensions have increased demand for gold globally.
- As the rupee weakens against the dollar, gold gains further value in India.
5. Beware of Cyclicality
- After sharp rallies, gold often corrects.
- But over 15–20 years, its returns tend to outpace inflation and provide stability.
If you’re worried about market volatility, inflation, or currency risks, gold funds remain a wise allocation.
Conclusion
Gold mutual funds are one of the most effective ways for Indians to invest in gold without storage hassles or large capital requirements. With SIPs starting from ₹100, professional management, and long-term inflation-hedging benefits, they’re a must-have in a diversified portfolio. With global uncertainty and rising inflation, allocating a portion of your wealth to gold funds can provide safety, stability, and steady returns.
FAQs
1. What should I look for while investing in gold mutual funds?
A: Compare 3-year CAGR, expense ratio, fund manager reputation, and AUM size before Investing.
2. Are gold funds better than physical gold?
A: Yes — because they are liquid, cost-efficient, and transparent. No making charges or purity concerns.
3. How much should I allocate to gold funds?
A: Financial planners recommend 5–15% of portfolio allocation to gold.
4. Which gold fund is best for SIP investors?
A: SBI Gold Fund and HDFC Gold Fund have strong SIP performance records.
5. Are gold mutual funds safe?
A: They carry market risks, but as a long-term hedge, they are safer and more stable than many other asset classes.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Really a useful knowledge. for investment decision.espically for gold and global fund investments.
Very informative.
Which gold investment fund will be good for me pls suggest for 1- 1.3 years