+91-22-48913909Best Gold Mutual Funds in India 2026 – Returns, SIP & Tax
Gold has always been one of the most trusted assets for Indian households — whether in the form of jewellery, coins, or bars. But over the last few years, gold has evolved from a traditional store of value into an important financial asset class.
With gold prices trading near record highs in 2025 and 2026, investors are actively searching for safe, systematic and hassle-free ways to invest in gold — without the risks of physical storage or large lump-sum investments.
This is where Gold Mutual Funds have gained massive popularity. Let’s explore what are gold funds, how taxation works, the top-performing funds in India, and many more insights.
What Are Gold Mutual Funds?
Gold mutual funds are open-ended mutual fund schemes that invest primarily in Gold Exchange Traded Fund (Gold ETFs). These ETFs, in turn, hold physical gold bullion of 99.5% purity, as per SEBI regulations.
When you invest in a gold mutual fund, your money is not kept in cash. The fund uses your investment to Buy Gold through Gold ETFs, which hold actual physical gold on behalf of investors.
So even though you don’t own gold coins or bars yourself, your investment value still moves exactly in line with gold prices. This structure allows investors to benefit from gold price movements without owning physical gold.
Why Gold Funds Are Gaining Popularity?
India has a strong emotional and cultural connection with gold, but modern investors are increasingly shifting from physical gold to financial gold due to the following advantages:
- SIP investment starts from as low as ₹100
- No storage or locker costs
- No purity or making-charge concerns
- No Demat account required
- Easy liquidity through fund houses
- Transparent pricing linked to daily gold rates
- Suitable for long-term Portfolio diversification
For retail investors, gold mutual funds are among the most cost-efficient ways to invest in gold.
Talk to our investment specialist
How Do Gold Mutual Funds Work?
- The fund house collects money from investors
- The corpus is invested in Gold ETFs
- gold ETF prices track domestic gold prices
- NAV of the gold fund moves in line with gold prices
Unlike jewellery or coins, investors pay:
- No making charges
- No storage fees
- No resale deductions
Returns purely depend on gold price movement.
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.Taxation on Gold Mutual Funds & Gold ETFs (Updated for 2026)
Gold mutual funds and gold ETFs are taxed differently based on their holding period and structure.
Gold ETFs (Listed)
- If held for 12 months or less, gains are taxed as short-term capital gains at the investor’s income tax slab rate.
- If held for more than 12 months, gains are taxed as long-term capital gains at 12.5%, without indexation benefit.
Gold Mutual Funds (Fund of Fund)
- If held for 24 months or less, gains are treated as short-term capital gains and taxed as per slab rate.
- If held for more than 24 months, gains are taxed as long-term capital gains at 12.5%, without indexation.
These tax rules are applicable as per current capital gains provisions and may change in future budgets.
Fund Selection Methodology used to find 8 funds
Top Performing Gold Funds to Invest in India (2026)
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) SBI Gold Fund Growth ₹43.8339
↑ 0.37 ₹17,647 8.4 4.3 31.8 35.1 25.3 71.5 ICICI Prudential Regular Gold Savings Fund Growth ₹46.3328
↑ 0.41 ₹7,149 8.7 4.2 31.5 35 25.1 72 Nippon India Gold Savings Fund Growth ₹57.2074
↑ 0.46 ₹7,602 8.2 4.2 31.3 34.8 25 71.2 HDFC Gold Fund Growth ₹44.6691
↑ 0.34 ₹12,359 8.4 4.4 31.5 34.8 25 71.3 Kotak Gold Fund Growth ₹57.4899
↑ 0.49 ₹7,195 8.5 4.5 31.6 34.8 24.7 70.4 IDBI Gold Fund Growth ₹38.7754
↑ 0.34 ₹858 7.7 4.7 31.2 34.7 25.2 79 Aditya Birla Sun Life Gold Fund Growth ₹43.476
↑ 0.30 ₹1,843 8.2 4.8 31.5 34.7 25 72 Axis Gold Fund Growth ₹43.4563
↑ 0.39 ₹3,191 8.6 4.1 31.5 34.5 25 69.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 25 Sep 26 Research Highlights & Commentary of 8 Funds showcased
Commentary SBI Gold Fund ICICI Prudential Regular Gold Savings Fund Nippon India Gold Savings Fund HDFC Gold Fund Kotak Gold Fund IDBI Gold Fund Aditya Birla Sun Life Gold Fund Axis Gold Fund Point 1 Highest AUM (₹17,647 Cr). Lower mid AUM (₹7,149 Cr). Upper mid AUM (₹7,602 Cr). Top quartile AUM (₹12,359 Cr). Upper mid AUM (₹7,195 Cr). Bottom quartile AUM (₹858 Cr). Bottom quartile AUM (₹1,843 Cr). Lower mid AUM (₹3,191 Cr). Point 2 Oldest track record among peers (15 yrs). Established history (14+ yrs). Established history (15+ yrs). Established history (14+ yrs). Established history (15+ yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (14+ yrs). Point 3 Rating: 2★ (top quartile). Rating: 1★ (upper mid). Rating: 2★ (upper mid). Rating: 1★ (lower mid). Rating: 1★ (lower mid). Not Rated. Top rated. 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: 25.27% (top quartile). 5Y return: 25.11% (upper mid). 5Y return: 24.99% (lower mid). 5Y return: 25.00% (lower mid). 5Y return: 24.74% (bottom quartile). 5Y return: 25.20% (top quartile). 5Y return: 24.97% (bottom quartile). 5Y return: 25.01% (upper mid). Point 6 3Y return: 35.09% (top quartile). 3Y return: 34.98% (top quartile). 3Y return: 34.83% (upper mid). 3Y return: 34.82% (upper mid). 3Y return: 34.81% (lower mid). 3Y return: 34.72% (lower mid). 3Y return: 34.70% (bottom quartile). 3Y return: 34.53% (bottom quartile). Point 7 1Y return: 31.79% (top quartile). 1Y return: 31.52% (upper mid). 1Y return: 31.30% (bottom quartile). 1Y return: 31.45% (lower mid). 1Y return: 31.64% (top quartile). 1Y return: 31.23% (bottom quartile). 1Y return: 31.53% (upper mid). 1Y return: 31.51% (lower mid). Point 8 1M return: -6.26% (upper mid). 1M return: -6.21% (top quartile). 1M return: -6.31% (lower mid). 1M return: -6.21% (top quartile). 1M return: -6.22% (upper mid). 1M return: -6.46% (bottom quartile). 1M return: -6.41% (bottom quartile). 1M return: -6.32% (lower 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: 1.38 (upper mid). Sharpe: 1.30 (lower mid). Sharpe: 1.27 (bottom quartile). Sharpe: 1.38 (upper mid). Sharpe: 1.46 (top quartile). Sharpe: 1.32 (lower mid). Sharpe: 1.28 (bottom quartile). Sharpe: 1.42 (top quartile). SBI Gold Fund
ICICI Prudential Regular Gold Savings Fund
Nippon India Gold Savings Fund
HDFC Gold Fund
Kotak Gold Fund
IDBI Gold Fund
Aditya Birla Sun Life Gold Fund
Axis Gold Fund
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 ICICI Prudential Regular Gold Savings Fund (the Scheme) is a fund of funds scheme with the primary objective to generate returns by investing in units of ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF).
However, there can be no assurance that the investment objectives of the Scheme will be realized. Research Highlights for ICICI Prudential Regular Gold Savings Fund Below is the key information for ICICI Prudential Regular Gold Savings 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 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 The investment objective of the scheme is to generate returns by investing in units of Kotak Gold Exchange Traded Fund. Research Highlights for Kotak Gold Fund Below is the key information for Kotak Gold Fund Returns up to 1 year are on 1. SBI Gold Fund
SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (25 Sep 26) ₹43.8339 ↑ 0.37 (0.85 %) Net Assets (Cr) ₹17,647 on 31 Aug 26 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.3 Sharpe Ratio 1.38 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 Aug 21 ₹10,000 31 Aug 22 ₹10,698 31 Aug 23 ₹12,347 31 Aug 24 ₹14,787 31 Aug 25 ₹20,728 31 Aug 26 ₹30,931 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month -6.3% 3 Month 8.4% 6 Month 4.3% 1 Year 31.8% 3 Year 35.1% 5 Year 25.3% 10 Year 15 Year Since launch 10.3% Historical performance (Yearly) on absolute basis
Year Returns 2025 71.5% 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% Fund Manager information for SBI Gold Fund
Name Since Tenure Viral Chhadva 1 Mar 26 0.42 Yr. Data below for SBI Gold Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 1.74% Other 98.26% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹15,823 Cr 1,309,409,339
↑ 29,228,118 Net Receivable / Payable
CBLO | -0% -₹31 Cr Treps
CBLO/Reverse Repo | -0% ₹20 Cr 2. ICICI Prudential Regular Gold Savings Fund
ICICI Prudential Regular Gold Savings Fund
Growth Launch Date 11 Oct 11 NAV (25 Sep 26) ₹46.3328 ↑ 0.41 (0.90 %) Net Assets (Cr) ₹7,149 on 31 Aug 26 Category Gold - Gold AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.38 Sharpe Ratio 1.3 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-15 Months (2%),15 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,737 31 Aug 23 ₹12,284 31 Aug 24 ₹14,764 31 Aug 25 ₹20,704 31 Aug 26 ₹30,750 Returns for ICICI Prudential Regular Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month -6.2% 3 Month 8.7% 6 Month 4.2% 1 Year 31.5% 3 Year 35% 5 Year 25.1% 10 Year 15 Year Since launch 10.8% Historical performance (Yearly) on absolute basis
Year Returns 2025 72% 2024 19.5% 2023 13.5% 2022 12.7% 2021 -5.4% 2020 26.6% 2019 22.7% 2018 7.4% 2017 0.8% 2016 8.9% Fund Manager information for ICICI Prudential Regular Gold Savings Fund
Name Since Tenure Manish Banthia 27 Sep 12 13.85 Yr. Nishit Patel 29 Dec 20 5.59 Yr. Ashwini Bharucha 1 Nov 25 0.75 Yr. Venus Ahuja 1 Nov 25 0.75 Yr. Data below for ICICI Prudential Regular Gold Savings Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 2.02% Other 97.98% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -100% ₹6,392 Cr 526,862,660
↑ 5,383,968 Treps
CBLO/Reverse Repo | -0% ₹15 Cr Net Current Assets
Net Current Assets | -0% -₹10 Cr 3. Nippon India Gold Savings Fund
Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (25 Sep 26) ₹57.2074 ↑ 0.46 (0.81 %) Net Assets (Cr) ₹7,602 on 31 Aug 26 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.35 Sharpe Ratio 1.27 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 Aug 21 ₹10,000 31 Aug 22 ₹10,706 31 Aug 23 ₹12,237 31 Aug 24 ₹14,692 31 Aug 25 ₹20,596 31 Aug 26 ₹30,613 Returns for Nippon India Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month -6.3% 3 Month 8.2% 6 Month 4.2% 1 Year 31.3% 3 Year 34.8% 5 Year 25% 10 Year 15 Year Since launch 11.9% Historical performance (Yearly) on absolute basis
Year Returns 2025 71.2% 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% Fund Manager information for Nippon India Gold Savings Fund
Name Since Tenure Himanshu Mange 23 Dec 23 2.61 Yr. Data below for Nippon India Gold Savings Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 1.66% Other 98.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | -100% ₹6,959 Cr 594,220,572
↑ 3,245,000 Net Current Assets
Net Current Assets | -0% -₹11 Cr Triparty Repo
CBLO/Reverse Repo | -0% ₹11 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 Cr 4. HDFC Gold Fund
HDFC Gold Fund
Growth Launch Date 24 Oct 11 NAV (25 Sep 26) ₹44.6691 ↑ 0.34 (0.77 %) Net Assets (Cr) ₹12,359 on 31 Aug 26 Category Gold - Gold AMC HDFC Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.49 Sharpe Ratio 1.38 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 Aug 21 ₹10,000 31 Aug 22 ₹10,714 31 Aug 23 ₹12,278 31 Aug 24 ₹14,771 31 Aug 25 ₹20,591 31 Aug 26 ₹30,676 Returns for HDFC Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month -6.2% 3 Month 8.4% 6 Month 4.4% 1 Year 31.5% 3 Year 34.8% 5 Year 25% 10 Year 15 Year Since launch 10.6% Historical performance (Yearly) on absolute basis
Year Returns 2025 71.3% 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% Fund Manager information for HDFC Gold Fund
Name Since Tenure Arun Agarwal 15 Feb 23 3.46 Yr. Nandita Menezes 29 Mar 25 1.34 Yr. Data below for HDFC Gold Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 1.46% Other 98.54% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Gold ETF
- | -100% ₹11,202 Cr 925,647,168
↑ 5,566,231 Net Current Assets
Net Current Assets | -0% -₹10 Cr Treps - Tri-Party Repo
CBLO/Reverse Repo | -0% ₹5 Cr 5. Kotak Gold Fund
Kotak Gold Fund
Growth Launch Date 25 Mar 11 NAV (25 Sep 26) ₹57.4899 ↑ 0.49 (0.86 %) Net Assets (Cr) ₹7,195 on 31 Aug 26 Category Gold - Gold AMC Kotak Mahindra Asset Management Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.5 Sharpe Ratio 1.46 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 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 Aug 21 ₹10,000 31 Aug 22 ₹10,634 31 Aug 23 ₹12,161 31 Aug 24 ₹14,601 31 Aug 25 ₹20,423 31 Aug 26 ₹30,400 Returns for Kotak Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month -6.2% 3 Month 8.5% 6 Month 4.5% 1 Year 31.6% 3 Year 34.8% 5 Year 24.7% 10 Year 15 Year Since launch 11.9% Historical performance (Yearly) on absolute basis
Year Returns 2025 70.4% 2024 18.9% 2023 13.9% 2022 11.7% 2021 -4.7% 2020 26.6% 2019 24.1% 2018 7.3% 2017 2.5% 2016 10.2% Fund Manager information for Kotak Gold Fund
Name Since Tenure Abhishek Bisen 25 Mar 11 15.45 Yr. Jeetu Sonar 1 Oct 22 3.92 Yr. Data below for Kotak Gold Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 1.66% Other 98.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Gold ETF
- | -100% ₹6,520 Cr 551,808,125
↑ 3,970,000 Triparty Repo
CBLO/Reverse Repo | -0% ₹19 Cr Net Current Assets/(Liabilities)
Net Current Assets | -0% -₹8 Cr
Gold at Record Highs – Is It Still Worth Investing?
In 2025 and 2026, gold prices in India have remained close to all-time highs, supported by:
- Persistent global inflation
- Central Bank gold accumulation
- Geopolitical tensions
- Weakening rupee
- High global debt levels
- Equity market Volatility
While Investing a lump sum at peak levels carries short-term risk, gold mutual funds offer a more disciplined approach through Systematic Investment plan (SIPs). SIP investing helps:
- Average purchase cost over time
- Reduce timing risk
- Remove emotional decision-making
This makes gold mutual funds one of the most practical investment options even when gold prices are elevated.
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).
Gold Mutual Fund vs Gold ETF – Which Is Better?
| Basis | Gold Mutual Fund | Gold ETF |
|---|---|---|
| Demat account | Not required | Required |
| Minimum investment | ₹100 SIP | Market price |
| Expense ratio | Slightly higher | Lower |
| Ease of investing | Very easy | Moderate |
| Suitable for | Beginners | Experienced investors |
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.
Risks of Investing in Gold Mutual Funds
Despite being considered safe, investors must understand:
- Short-term price volatility
- No regular income or dividends
- Returns fully depend on gold prices
- Not ideal for short-term goals
Gold works best as portfolio insurance, not as a growth engine.
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!
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. 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.
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2026 Shepard Technologies Private Limited. All Rights Reserved
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