Table of Contents
Top 8 Gold - Gold Funds
Gold has emerged as an important Asset Class in most portfolios, given its ability to grow with Inflation and protect the Portfolio from Volatility caused by financial and economic crises. As gold continues to be a key part of a well-rounded investment strategy, Gold Mutual Funds have gained significant popularity in recent years.
Today, gold as an investment is available in many forms, such as physical gold, E-Gold, etc. However, Gold Funds have emerged as one of the most accessible and popular routes for gold investments. Let’s take a close look at some of the best Gold Mutual Funds to invest in 2025.
Indians have always been culturally inclined towards buying gold, whether for ornamental purposes or wealth creation. Festivals, weddings, and celebrations throughout the year further reinforce this tradition. While earlier, physical gold used to be the preferred choice, Gold Mutual Funds have become increasingly popular due to their numerous benefits over physical gold, including:
Gold Mutual Funds are a variant of Gold ETFs (Exchange-Traded Funds). While gold ETFs directly invest in gold bullion or securities linked to gold prices, Gold Mutual Funds invest in gold ETFs on behalf of investors. Unlike physical gold, there are no storage hassles, and gold prices are tracked in real-time, Offering investors transparency and security.
Minimum investment for Gold Mutual Funds typically starts at INR 100, making it easy for investors to enter the Market with small amounts, and systematic Investment plan (SIPs) allow for flexible, long-term growth.
Gold Mutual Funds are taxed based on Capital gains and the holding period. If you hold the fund for less than 24 months, your gains are taxed as short-term Capital Gains (STCG) at 20% as per your applicable income tax slab rate. However, if the holding period exceeds 24 months, the capital gains are considered long-term capital gains (LTCG) and taxed at a uniform rate of 12.5%, with no indexation benefits.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) IDBI Gold Fund Growth ₹24.5374
↑ 0.33 ₹104 7.5 26 25.1 21.4 13.1 18.7 SBI Gold Fund Growth ₹27.4347
↑ 0.25 ₹3,582 7.4 25.6 24.8 21.3 13.1 19.6 Nippon India Gold Savings Fund Growth ₹35.9356
↑ 0.34 ₹2,744 7.6 25.6 25 21.3 12.8 19 HDFC Gold Fund Growth ₹28.0619
↑ 0.26 ₹3,558 7.5 25.6 24.9 21.2 13 18.9 Axis Gold Fund Growth ₹27.4311
↑ 0.36 ₹944 7.5 25.6 25.2 21.2 13.2 19.2 Invesco India Gold Fund Growth ₹26.6117
↑ 0.34 ₹142 7.8 25.2 24.7 21.1 13.2 18.8 ICICI Prudential Regular Gold Savings Fund Growth ₹29.0265
↑ 0.18 ₹1,909 7.7 25.6 24.4 21 12.9 19.5 Kotak Gold Fund Growth ₹36.0304
↑ 0.20 ₹2,835 7.1 25.1 24.2 20.8 12.7 18.9 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25 Gold Funds
having AUM/Net Assets > 25 Crore
ordered based on 3 year Calendar year returns.
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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). IDBI Gold Fund is a Gold - Gold fund was launched on 14 Aug 12. It is a fund with Moderately High risk and has given a Below is the key information for IDBI Gold Fund Returns up to 1 year are on The scheme seeks to provide returns that closely correspond to returns provided by SBI - ETF Gold (Previously known as SBI GETS). SBI Gold Fund is a Gold - Gold fund was launched on 12 Sep 11. It is a fund with Moderately High risk and has given a Below is the key information for SBI 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. Nippon India Gold Savings Fund is a Gold - Gold fund was launched on 7 Mar 11. It is a fund with Moderately High risk and has given a 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). HDFC Gold Fund is a Gold - Gold fund was launched on 24 Oct 11. It is a fund with Moderately High risk and has given a Below is the key information for HDFC Gold Fund Returns up to 1 year are on To generate returns that closely correspond to returns generated by Axis Gold ETF. Axis Gold Fund is a Gold - Gold fund was launched on 20 Oct 11. It is a fund with Moderately High risk and has given a Below is the key information for Axis Gold Fund Returns up to 1 year are on To provide returns that closely corresponds to returns provided by Invesco India Gold Exchange Traded Fund. Invesco India Gold Fund is a Gold - Gold fund was launched on 5 Dec 11. It is a fund with Moderately High risk and has given a Below is the key information for Invesco India 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. ICICI Prudential Regular Gold Savings Fund is a Gold - Gold fund was launched on 11 Oct 11. It is a fund with Moderately High risk and has given a 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 generate returns by investing in units of Kotak Gold Exchange Traded Fund. Kotak Gold Fund is a Gold - Gold fund was launched on 25 Mar 11. It is a fund with Moderately High risk and has given a Below is the key information for Kotak Gold Fund Returns up to 1 year are on 1. IDBI Gold Fund
CAGR/Annualized
return of 7.3% since its launch. Return for 2024 was 18.7% , 2023 was 14.8% and 2022 was 12% . IDBI Gold Fund
Growth Launch Date 14 Aug 12 NAV (16 May 25) ₹24.5374 ↑ 0.33 (1.34 %) Net Assets (Cr) ₹104 on 31 Mar 25 Category Gold - Gold AMC IDBI Asset Management Limited Rating Risk Moderately High Expense Ratio 0.65 Sharpe Ratio 1.62 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 30 Apr 20 ₹10,000 30 Apr 21 ₹9,953 30 Apr 22 ₹10,848 30 Apr 23 ₹12,438 30 Apr 24 ₹14,699 30 Apr 25 ₹19,187 Returns for IDBI Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 16 May 25 Duration Returns 1 Month -1% 3 Month 7.5% 6 Month 26% 1 Year 25.1% 3 Year 21.4% 5 Year 13.1% 10 Year 15 Year Since launch 7.3% 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 0.91 Yr. Data below for IDBI Gold Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 2.93% Other 97.07% Top Securities Holdings / Portfolio
Name Holding Value Quantity LIC MF Gold ETF
- | -99% ₹124 Cr 142,519
↑ 16,047 Treps
CBLO/Reverse Repo | -5% ₹7 Cr Net Receivables / (Payables)
Net Current Assets | -4% -₹5 Cr 2. SBI Gold Fund
CAGR/Annualized
return of 7.7% since its launch. Return for 2024 was 19.6% , 2023 was 14.1% and 2022 was 12.6% . SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (16 May 25) ₹27.4347 ↑ 0.25 (0.92 %) Net Assets (Cr) ₹3,582 on 31 Mar 25 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.29 Sharpe Ratio 1.59 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 30 Apr 20 ₹10,000 30 Apr 21 ₹9,632 30 Apr 22 ₹10,607 30 Apr 23 ₹12,124 30 Apr 24 ₹14,397 30 Apr 25 ₹18,635 Returns for SBI Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 16 May 25 Duration Returns 1 Month -1.7% 3 Month 7.4% 6 Month 25.6% 1 Year 24.8% 3 Year 21.3% 5 Year 13.1% 10 Year 15 Year Since launch 7.7% 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 Raj gandhi 1 Jan 13 12.34 Yr. Data below for SBI Gold Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 1.27% Other 98.73% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹3,939 Cr 483,231,791
↑ 15,977,871 Net Receivable / Payable
CBLO | -1% -₹23 Cr Treps
CBLO/Reverse Repo | -0% ₹15 Cr 3. Nippon India Gold Savings Fund
CAGR/Annualized
return of 9.4% since its launch. Return for 2024 was 19% , 2023 was 14.3% and 2022 was 12.3% . Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (16 May 25) ₹35.9356 ↑ 0.34 (0.96 %) Net Assets (Cr) ₹2,744 on 31 Mar 25 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.34 Sharpe Ratio 1.55 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 30 Apr 20 ₹10,000 30 Apr 21 ₹9,504 30 Apr 22 ₹10,441 30 Apr 23 ₹11,905 30 Apr 24 ₹14,095 30 Apr 25 ₹18,246 Returns for Nippon India Gold Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 16 May 25 Duration Returns 1 Month -1.9% 3 Month 7.6% 6 Month 25.6% 1 Year 25% 3 Year 21.3% 5 Year 12.8% 10 Year 15 Year Since launch 9.4% 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 1.35 Yr. Data below for Nippon India Gold Savings Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 1.45% Other 98.55% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | -100% ₹2,960 Cr 374,289,097
↑ 4,429,805 Net Current Assets
Net Current Assets | -0% -₹12 Cr Triparty Repo
CBLO/Reverse Repo | -0% ₹11 Cr Cash Margin - Ccil
CBLO | -0% ₹0 Cr Cash
Net Current Assets | -0% ₹0 Cr 00 4. HDFC Gold Fund
CAGR/Annualized
return of 7.9% since its launch. Return for 2024 was 18.9% , 2023 was 14.1% and 2022 was 12.7% . HDFC Gold Fund
Growth Launch Date 24 Oct 11 NAV (16 May 25) ₹28.0619 ↑ 0.26 (0.92 %) Net Assets (Cr) ₹3,558 on 31 Mar 25 Category Gold - Gold AMC HDFC Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.49 Sharpe Ratio 1.62 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 30 Apr 20 ₹10,000 30 Apr 21 ₹9,590 30 Apr 22 ₹10,558 30 Apr 23 ₹12,021 30 Apr 24 ₹14,277 30 Apr 25 ₹18,463 Returns for HDFC Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 16 May 25 Duration Returns 1 Month -1.7% 3 Month 7.5% 6 Month 25.6% 1 Year 24.9% 3 Year 21.2% 5 Year 13% 10 Year 15 Year Since launch 7.9% 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 2.21 Yr. Nandita Menezes 29 Mar 25 0.09 Yr. Data below for HDFC Gold Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 1.77% Other 98.23% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Gold ETF
- | -100% ₹3,556 Cr 462,353,678
↑ 12,154,034 Treps - Tri-Party Repo
CBLO/Reverse Repo | -0% ₹10 Cr Net Current Assets
Net Current Assets | -0% -₹9 Cr 5. Axis Gold Fund
CAGR/Annualized
return of 7.7% since its launch. Return for 2024 was 19.2% , 2023 was 14.7% and 2022 was 12.5% . Axis Gold Fund
Growth Launch Date 20 Oct 11 NAV (16 May 25) ₹27.4311 ↑ 0.36 (1.32 %) Net Assets (Cr) ₹944 on 31 Mar 25 Category Gold - Gold AMC Axis Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.24 Sharpe Ratio 1.58 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Apr 20 ₹10,000 30 Apr 21 ₹9,547 30 Apr 22 ₹10,528 30 Apr 23 ₹11,994 30 Apr 24 ₹14,258 30 Apr 25 ₹18,379 Returns for Axis Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 16 May 25 Duration Returns 1 Month -1.8% 3 Month 7.5% 6 Month 25.6% 1 Year 25.2% 3 Year 21.2% 5 Year 13.2% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 19.2% 2023 14.7% 2022 12.5% 2021 -4.7% 2020 26.9% 2019 23.1% 2018 8.3% 2017 0.7% 2016 10.7% 2015 -11.9% Fund Manager information for Axis Gold Fund
Name Since Tenure Aditya Pagaria 9 Nov 21 3.47 Yr. Pratik Tibrewal 1 Feb 25 0.24 Yr. Data below for Axis Gold Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 3.75% Other 96.25% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Gold ETF
- | -98% ₹1,009 Cr 126,831,408
↑ 3,500,000 Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -3% ₹28 Cr Net Receivables / (Payables)
CBLO | -0% -₹4 Cr 6. Invesco India Gold Fund
CAGR/Annualized
return of 7.6% since its launch. Return for 2024 was 18.8% , 2023 was 14.5% and 2022 was 12.8% . Invesco India Gold Fund
Growth Launch Date 5 Dec 11 NAV (16 May 25) ₹26.6117 ↑ 0.34 (1.28 %) Net Assets (Cr) ₹142 on 31 Mar 25 Category Gold - Gold AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.45 Sharpe Ratio 1.6 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 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 30 Apr 20 ₹10,000 30 Apr 21 ₹9,639 30 Apr 22 ₹10,648 30 Apr 23 ₹12,107 30 Apr 24 ₹14,347 30 Apr 25 ₹18,454 Returns for Invesco India Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 16 May 25 Duration Returns 1 Month -1.8% 3 Month 7.8% 6 Month 25.2% 1 Year 24.7% 3 Year 21.1% 5 Year 13.2% 10 Year 15 Year Since launch 7.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 18.8% 2023 14.5% 2022 12.8% 2021 -5.5% 2020 27.2% 2019 21.4% 2018 6.6% 2017 1.3% 2016 21.6% 2015 -15.1% Fund Manager information for Invesco India Gold Fund
Name Since Tenure Krishna Cheemalapati 1 Mar 25 0.17 Yr. Data below for Invesco India Gold Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 5.71% Other 94.29% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Gold ETF
- | -96% ₹136 Cr 174,343
↑ 8,000 Triparty Repo
CBLO/Reverse Repo | -4% ₹6 Cr Net Receivables / (Payables)
Net Current Assets | -0% ₹0 Cr 7. ICICI Prudential Regular Gold Savings Fund
CAGR/Annualized
return of 8.2% since its launch. Return for 2024 was 19.5% , 2023 was 13.5% and 2022 was 12.7% . ICICI Prudential Regular Gold Savings Fund
Growth Launch Date 11 Oct 11 NAV (16 May 25) ₹29.0265 ↑ 0.18 (0.62 %) Net Assets (Cr) ₹1,909 on 31 Mar 25 Category Gold - Gold AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.4 Sharpe Ratio 1.56 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 30 Apr 20 ₹10,000 30 Apr 21 ₹9,598 30 Apr 22 ₹10,545 30 Apr 23 ₹12,018 30 Apr 24 ₹14,252 30 Apr 25 ₹18,460 Returns for ICICI Prudential Regular Gold Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 16 May 25 Duration Returns 1 Month -1.9% 3 Month 7.7% 6 Month 25.6% 1 Year 24.4% 3 Year 21% 5 Year 12.9% 10 Year 15 Year Since launch 8.2% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 -5.1% Fund Manager information for ICICI Prudential Regular Gold Savings Fund
Name Since Tenure Manish Banthia 27 Sep 12 12.6 Yr. Nishit Patel 29 Dec 20 4.34 Yr. Data below for ICICI Prudential Regular Gold Savings Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 2.21% Other 97.79% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -99% ₹1,897 Cr 247,781,245
↑ 11,214,965 Treps
CBLO/Reverse Repo | -1% ₹14 Cr Net Current Assets
Net Current Assets | -0% -₹2 Cr 8. Kotak Gold Fund
CAGR/Annualized
return of 9.5% since its launch. Return for 2024 was 18.9% , 2023 was 13.9% and 2022 was 11.7% . Kotak Gold Fund
Growth Launch Date 25 Mar 11 NAV (16 May 25) ₹36.0304 ↑ 0.20 (0.56 %) Net Assets (Cr) ₹2,835 on 31 Mar 25 Category Gold - Gold AMC Kotak Mahindra Asset Management Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.5 Sharpe Ratio 1.57 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 30 Apr 20 ₹10,000 30 Apr 21 ₹9,688 30 Apr 22 ₹10,630 30 Apr 23 ₹12,058 30 Apr 24 ₹14,279 30 Apr 25 ₹18,422 Returns for Kotak Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 16 May 25 Duration Returns 1 Month -1.8% 3 Month 7.1% 6 Month 25.1% 1 Year 24.2% 3 Year 20.8% 5 Year 12.7% 10 Year 15 Year Since launch 9.5% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 -8.4% Fund Manager information for Kotak Gold Fund
Name Since Tenure Abhishek Bisen 25 Mar 11 14.11 Yr. Jeetu Sonar 1 Oct 22 2.58 Yr. Data below for Kotak Gold Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 2.4% Other 97.6% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Gold ETF
- | -100% ₹2,821 Cr 376,446,978
↑ 5,960,339 Triparty Repo
CBLO/Reverse Repo | -1% ₹18 Cr Net Current Assets/(Liabilities)
Net Current Assets | -0% -₹4 Cr
Gold is often seen as a hedge against inflation. When inflation rises, the value of gold tends to rise as well, offering stability in uncertain times. Unlike cash, which may lose its purchasing power, gold’s value increases over time, making it a safe asset during inflationary periods.
Gold is highly liquid, meaning it can be easily sold in times of need. Compared to physical gold, Gold ETFs and Gold Mutual Funds offer higher liquidity since they can be sold through the mutual fund house or stock exchange.
Gold is often referred to as a “safe-haven” asset. Its price movements usually have low correlation with stock markets, making it a valuable tool for diversification. When stock markets are volatile or declining, gold often performs better, helping to protect your portfolio from significant losses.
Gold has maintained its value for centuries. While it may not always offer explosive returns, it is a stable asset that provides moderate returns over time. In certain short periods, such as during economic crises, it has even shown significant returns.
Gold Mutual Funds are ideal for:
Gold Mutual Funds are suitable for anyone seeking diversification and capital appreciation while enjoying the flexibility of no physical storage requirements and a low entry barrier.
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The short answer is Yes, but with a few nuances to consider.
Gold prices fluctuate due to a variety of economic factors, including inflation, interest rates, and market instability. When gold prices are rising, it's often a response to economic or geopolitical uncertainty (e.g., inflationary pressures, stock market volatility, or currency Depreciation).
Historically, gold has performed well when other asset classes (like stocks or Bonds) Underperform. However, predicting exact price movements is difficult, and timing the market isn't always a reliable strategy.
One of the most reliable strategies, particularly for gold mutual funds, is Systematic Investment Plans (SIP). With SIPs, you invest a fixed amount regularly, regardless of gold’s price. This approach helps mitigate the risk of trying to buy at the "peak" or "bottom" of a price cycle.
SIP advantage: By Investing consistently, you average out your cost of investment, potentially avoiding the risks of buying at a high price.
Gold’s role in a portfolio is typically as a long-term hedge against inflation and economic instability. Although the price of gold may rise or fall in the short term, its value has historically held up well over long periods.
Even with rising gold prices, the fundamentals of gold as a store of value remain unchanged. If you invest in gold mutual funds for the long term, you’re likely to see positive returns, as gold often outperforms during inflationary periods or financial crises.
If inflation is rising or if the global Economy is facing turbulence (e.g., financial market instability or currency depreciation), gold becomes an attractive investment. As gold is negatively correlated with other asset classes (like equities), it can serve as a safe-haven investment.
Interest rates also play a key role—when rates are low, gold often performs better, since it becomes more appealing compared to other assets like bonds or savings accounts that offer low returns.
If gold prices are increasing now, it could indicate a strong demand for gold, driven by inflation or uncertainty in the markets. If you're planning to invest in gold mutual funds, remember that rising prices could mean higher entry points, but the long-term benefits could still outweigh the short-term fluctuations.
Gold’s cyclical nature: After periods of significant price increases, gold often experiences corrections. However, over the long term, its average returns tend to outpace inflation and provide stability to a diversified portfolio.
It remains a good time to invest in gold mutual funds, particularly if you’re looking at long-term gains. Consider using SIPs to average out the cost of buying, and remember that gold’s role as a hedge against inflation and volatility is unlikely to change.
A: A: When choosing a gold mutual fund, compare its growth rate, Net Asset Value (NAV), and historical returns. It’s also essential to consider fund size, expense ratios, and fund manager performance.
A: A gold mutual fund offers a hedge against market volatility and inflation. It’s also a liquid investment and provides diversification in your portfolio.
A: SBI Gold Fund is one of the leading funds with a proven track record of growth, showing steady returns over time. It is backed by SBI Mutual Fund, one of India’s most trusted names in the Financial Sector.
A: Axis Gold Fund has demonstrated strong returns since its inception and is known for consistent growth. Its reliable performance makes it a solid choice for conservative gold investors.
A: Kotak Gold Fund has been one of the best performers in the gold mutual fund space, offering competitive annual returns and a well-managed portfolio.
A: Yes, gold mutual funds are generally safe. However, like all investments, they are subject to market fluctuations. Over the long term, however, gold has proven to be a stable asset class.
By Rohini Hiremath
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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