+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.
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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 (%) 2024 (%) SBI Gold Fund Growth ₹45.2563
↑ 0.15 ₹10,775 26.2 52.1 77.1 38 25 71.5 Aditya Birla Sun Life Gold Fund Growth ₹44.8929
↑ 0.23 ₹1,266 25.8 51.9 76.5 37.8 24.8 72 ICICI Prudential Regular Gold Savings Fund Growth ₹47.8639
↑ 0.25 ₹4,482 26.2 51.9 76.7 37.8 24.8 72 HDFC Gold Fund Growth ₹46.1537
↑ 0.17 ₹8,501 26.1 51.9 76.9 37.7 24.7 71.3 Nippon India Gold Savings Fund Growth ₹59.1096
↑ 0.17 ₹5,301 26 51.8 76.3 37.7 24.7 71.2 Axis Gold Fund Growth ₹44.9135
↑ 0.21 ₹2,167 25.8 51.5 75.4 37.6 24.9 69.8 Kotak Gold Fund Growth ₹59.2704
↓ -0.08 ₹5,213 25.8 51.6 76.4 37.4 24.6 70.4 Invesco India Gold Fund Growth ₹43.1104
↑ 0.31 ₹341 25.6 50.3 74.2 37.2 24.3 69.6 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 10 Feb 26 Research Highlights & Commentary of 8 Funds showcased
Commentary SBI Gold Fund Aditya Birla Sun Life Gold Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Nippon India Gold Savings Fund Axis Gold Fund Kotak Gold Fund Invesco India Gold Fund Point 1 Highest AUM (₹10,775 Cr). Bottom quartile AUM (₹1,266 Cr). Lower mid AUM (₹4,482 Cr). Top quartile AUM (₹8,501 Cr). Upper mid AUM (₹5,301 Cr). Lower mid AUM (₹2,167 Cr). Upper mid AUM (₹5,213 Cr). Bottom quartile AUM (₹341 Cr). Point 2 Oldest track record among peers (14 yrs). Established history (13+ yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (14+ yrs). Point 3 Rating: 2★ (upper mid). Top rated. Rating: 1★ (lower mid). Rating: 1★ (lower mid). Rating: 2★ (upper mid). Rating: 1★ (bottom quartile). Rating: 1★ (bottom quartile). Rating: 3★ (top 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: 24.98% (top quartile). 5Y return: 24.76% (upper mid). 5Y return: 24.83% (upper mid). 5Y return: 24.73% (lower mid). 5Y return: 24.70% (lower mid). 5Y return: 24.87% (top quartile). 5Y return: 24.57% (bottom quartile). 5Y return: 24.31% (bottom quartile). Point 6 3Y return: 37.99% (top quartile). 3Y return: 37.79% (top quartile). 3Y return: 37.77% (upper mid). 3Y return: 37.69% (upper mid). 3Y return: 37.66% (lower mid). 3Y return: 37.63% (lower mid). 3Y return: 37.40% (bottom quartile). 3Y return: 37.22% (bottom quartile). Point 7 1Y return: 77.09% (top quartile). 1Y return: 76.47% (upper mid). 1Y return: 76.74% (upper mid). 1Y return: 76.93% (top quartile). 1Y return: 76.27% (lower mid). 1Y return: 75.44% (bottom quartile). 1Y return: 76.41% (lower mid). 1Y return: 74.23% (bottom quartile). Point 8 1M return: 13.16% (top quartile). 1M return: 13.04% (upper mid). 1M return: 13.01% (upper mid). 1M return: 13.04% (top quartile). 1M return: 12.89% (lower mid). 1M return: 12.74% (bottom quartile). 1M return: 12.85% (bottom quartile). 1M return: 12.87% (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: 4.38 (lower mid). Sharpe: 4.49 (top quartile). Sharpe: 4.33 (bottom quartile). Sharpe: 4.39 (lower mid). Sharpe: 4.46 (upper mid). Sharpe: 4.36 (bottom quartile). Sharpe: 4.63 (top quartile). Sharpe: 4.43 (upper mid). SBI Gold Fund
Aditya Birla Sun Life Gold Fund
ICICI Prudential Regular Gold Savings Fund
HDFC Gold Fund
Nippon India Gold Savings Fund
Axis Gold Fund
Kotak Gold Fund
Invesco India 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 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 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 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 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 (10 Feb 26) ₹45.2563 ↑ 0.15 (0.33 %) Net Assets (Cr) ₹10,775 on 31 Dec 25 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.3 Sharpe Ratio 4.38 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 Jan 21 ₹10,000 31 Jan 22 ₹9,629 31 Jan 23 ₹11,359 31 Jan 24 ₹12,462 31 Jan 25 ₹16,115 31 Jan 26 ₹30,818 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Feb 26 Duration Returns 1 Month 13.2% 3 Month 26.2% 6 Month 52.1% 1 Year 77.1% 3 Year 38% 5 Year 25% 10 Year 15 Year Since launch 11% Historical performance (Yearly) on absolute basis
Year Returns 2024 71.5% 2023 19.6% 2022 14.1% 2021 12.6% 2020 -5.7% 2019 27.4% 2018 22.8% 2017 6.4% 2016 3.5% 2015 10% Fund Manager information for SBI Gold Fund
Name Since Tenure Raviprakash Sharma 12 Sep 11 14.31 Yr. Data below for SBI Gold Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 1.25% Other 98.75% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹10,805 Cr 951,342,785
↑ 86,762,195 Net Receivable / Payable
CBLO | -1% -₹125 Cr Treps
CBLO/Reverse Repo | -1% ₹94 Cr 2. Aditya Birla Sun Life Gold Fund
Aditya Birla Sun Life Gold Fund
Growth Launch Date 20 Mar 12 NAV (10 Feb 26) ₹44.8929 ↑ 0.23 (0.52 %) Net Assets (Cr) ₹1,266 on 31 Dec 25 Category Gold - Gold AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.51 Sharpe Ratio 4.49 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 Jan 21 ₹10,000 31 Jan 22 ₹9,602 31 Jan 23 ₹11,314 31 Jan 24 ₹12,322 31 Jan 25 ₹15,883 31 Jan 26 ₹31,280 Returns for Aditya Birla Sun Life Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Feb 26 Duration Returns 1 Month 13% 3 Month 25.8% 6 Month 51.9% 1 Year 76.5% 3 Year 37.8% 5 Year 24.8% 10 Year 15 Year Since launch 11.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 72% 2023 18.7% 2022 14.5% 2021 12.3% 2020 -5% 2019 26% 2018 21.3% 2017 6.8% 2016 1.6% 2015 11.5% Fund Manager information for Aditya Birla Sun Life Gold Fund
Name Since Tenure Priya Sridhar 31 Dec 24 1 Yr. Data below for Aditya Birla Sun Life Gold Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 1.33% Other 98.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Gold ETF
- | -100% ₹1,268 Cr 107,894,183
↑ 5,418,626 Net Receivables / (Payables)
Net Current Assets | -1% -₹10 Cr Clearing Corporation Of India Limited
CBLO/Reverse Repo | -1% ₹8 Cr 3. ICICI Prudential Regular Gold Savings Fund
ICICI Prudential Regular Gold Savings Fund
Growth Launch Date 11 Oct 11 NAV (10 Feb 26) ₹47.8639 ↑ 0.25 (0.52 %) Net Assets (Cr) ₹4,482 on 31 Dec 25 Category Gold - Gold AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.38 Sharpe Ratio 4.33 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 Jan 21 ₹10,000 31 Jan 22 ₹9,678 31 Jan 23 ₹11,361 31 Jan 24 ₹12,399 31 Jan 25 ₹16,060 31 Jan 26 ₹31,216 Returns for ICICI Prudential Regular Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Feb 26 Duration Returns 1 Month 13% 3 Month 26.2% 6 Month 51.9% 1 Year 76.7% 3 Year 37.8% 5 Year 24.8% 10 Year 15 Year Since launch 11.5% Historical performance (Yearly) on absolute basis
Year Returns 2024 72% 2023 19.5% 2022 13.5% 2021 12.7% 2020 -5.4% 2019 26.6% 2018 22.7% 2017 7.4% 2016 0.8% 2015 8.9% Fund Manager information for ICICI Prudential Regular Gold Savings Fund
Name Since Tenure Manish Banthia 27 Sep 12 13.27 Yr. Nishit Patel 29 Dec 20 5.01 Yr. Ashwini Bharucha 1 Nov 25 0.17 Yr. Venus Ahuja 1 Nov 25 0.17 Yr. Data below for ICICI Prudential Regular Gold Savings Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 1.46% Other 98.54% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -100% ₹4,479 Cr 391,858,244
↑ 23,365,770 Treps
CBLO/Reverse Repo | -2% ₹73 Cr Net Current Assets
Net Current Assets | -2% -₹70 Cr 4. HDFC Gold Fund
HDFC Gold Fund
Growth Launch Date 24 Oct 11 NAV (10 Feb 26) ₹46.1537 ↑ 0.17 (0.36 %) Net Assets (Cr) ₹8,501 on 31 Dec 25 Category Gold - Gold AMC HDFC Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.49 Sharpe Ratio 4.39 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 Jan 21 ₹10,000 31 Jan 22 ₹9,641 31 Jan 23 ₹11,342 31 Jan 24 ₹12,349 31 Jan 25 ₹15,958 31 Jan 26 ₹30,476 Returns for HDFC Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Feb 26 Duration Returns 1 Month 13% 3 Month 26.1% 6 Month 51.9% 1 Year 76.9% 3 Year 37.7% 5 Year 24.7% 10 Year 15 Year Since launch 11.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 71.3% 2023 18.9% 2022 14.1% 2021 12.7% 2020 -5.5% 2019 27.5% 2018 21.7% 2017 6.6% 2016 2.8% 2015 10.1% Fund Manager information for HDFC Gold Fund
Name Since Tenure Arun Agarwal 15 Feb 23 2.88 Yr. Nandita Menezes 29 Mar 25 0.76 Yr. Data below for HDFC Gold Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 1.32% Other 98.68% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Gold ETF
- | -100% ₹8,513 Cr 748,659,417
↑ 41,324,000 Net Current Assets
Net Current Assets | -1% -₹43 Cr Treps - Tri-Party Repo
CBLO/Reverse Repo | -0% ₹31 Cr 5. Nippon India Gold Savings Fund
Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (10 Feb 26) ₹59.1096 ↑ 0.17 (0.28 %) Net Assets (Cr) ₹5,301 on 31 Dec 25 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.35 Sharpe Ratio 4.46 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 Jan 21 ₹10,000 31 Jan 22 ₹9,635 31 Jan 23 ₹11,321 31 Jan 24 ₹12,369 31 Jan 25 ₹15,957 31 Jan 26 ₹31,222 Returns for Nippon India Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Feb 26 Duration Returns 1 Month 12.9% 3 Month 26% 6 Month 51.8% 1 Year 76.3% 3 Year 37.7% 5 Year 24.7% 10 Year 15 Year Since launch 12.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 71.2% 2023 19% 2022 14.3% 2021 12.3% 2020 -5.5% 2019 26.6% 2018 22.5% 2017 6% 2016 1.7% 2015 11.6% Fund Manager information for Nippon India Gold Savings Fund
Name Since Tenure Himanshu Mange 23 Dec 23 2.03 Yr. Data below for Nippon India Gold Savings Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 1.16% Other 98.84% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | -100% ₹5,311 Cr 482,305,733
↑ 18,874,222 Net Current Assets
Net Current Assets | -0% -₹24 Cr Triparty Repo
CBLO/Reverse Repo | -0% ₹14 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 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.
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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