8 Best Gold Mutual Funds 2025

Updated on August 28, 2025 , 261233 views

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

Sub-category: Gold
AUM Range: 25 to 100000 Cr
Sorted On : 3-year return (high to low)
Tags: fcpro
No Of Funds: 8
As fund are selection is only for Gold is highly advisable for risk profile which is Medium with Medium term time frames

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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	₹30.0749 ↑ 0.32	₹4,740	7.7	19.5	40.3	24.7	13.4	19.6
IDBI Gold Fund Growth	₹26.7506 ↑ 0.37	₹214	7.5	19.5	40.3	24.6	13.6	18.7
Aditya Birla Sun Life Gold Fund Growth	₹29.9113 ↑ 0.30	₹663	7.9	19.8	40.3	24.5	13.4	18.7
Axis Gold Fund Growth	₹29.9607 ↑ 0.36	₹1,180	7.7	19.7	39.9	24.5	13.5	19.2
HDFC Gold Fund Growth	₹30.7365 ↑ 0.33	₹4,537	7.7	20	40.2	24.4	13.3	18.9
Nippon India Gold Savings Fund Growth	₹39.3887 ↑ 0.42	₹3,248	7.8	19.8	40.4	24.4	13.2	19
ICICI Prudential Regular Gold Savings Fund Growth	₹31.858 ↑ 0.34	₹2,384	7.8	19.6	40.3	24.4	13.3	19.5
Kotak Gold Fund Growth	₹39.5429 ↑ 0.44	₹3,302	7.8	20	39.9	24.2	13.2	18.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25

Research Highlights & Commentary of 8 Funds showcased

Commentary	SBI Gold Fund	IDBI Gold Fund	Aditya Birla Sun Life Gold Fund	Axis Gold Fund	HDFC Gold Fund	Nippon India Gold Savings Fund	ICICI Prudential Regular Gold Savings Fund	Kotak Gold Fund
Point 1	Highest AUM (₹4,740 Cr).	Bottom quartile AUM (₹214 Cr).	Bottom quartile AUM (₹663 Cr).	Lower mid AUM (₹1,180 Cr).	Top quartile AUM (₹4,537 Cr).	Upper mid AUM (₹3,248 Cr).	Lower mid AUM (₹2,384 Cr).	Upper mid AUM (₹3,302 Cr).
Point 2	Established history (13+ yrs).	Established history (13+ yrs).	Established history (13+ yrs).	Established history (13+ yrs).	Established history (13+ yrs).	Oldest track record among peers (14 yrs).	Established history (13+ yrs).	Established history (14+ yrs).
Point 3	Rating: 2★ (top quartile).	Not Rated.	Top rated.	Rating: 1★ (upper mid).	Rating: 1★ (lower mid).	Rating: 2★ (upper 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: 13.45% (upper mid).	5Y return: 13.58% (top quartile).	5Y return: 13.43% (upper mid).	5Y return: 13.54% (top quartile).	5Y return: 13.30% (lower mid).	5Y return: 13.19% (bottom quartile).	5Y return: 13.34% (lower mid).	5Y return: 13.21% (bottom quartile).
Point 6	3Y return: 24.72% (top quartile).	3Y return: 24.63% (top quartile).	3Y return: 24.50% (upper mid).	3Y return: 24.48% (upper mid).	3Y return: 24.43% (lower mid).	3Y return: 24.42% (lower mid).	3Y return: 24.40% (bottom quartile).	3Y return: 24.19% (bottom quartile).
Point 7	1Y return: 40.32% (top quartile).	1Y return: 40.30% (upper mid).	1Y return: 40.32% (upper mid).	1Y return: 39.85% (bottom quartile).	1Y return: 40.22% (lower mid).	1Y return: 40.39% (top quartile).	1Y return: 40.27% (lower mid).	1Y return: 39.95% (bottom quartile).
Point 8	1M return: 4.16% (lower mid).	1M return: 4.15% (bottom quartile).	1M return: 4.25% (top quartile).	1M return: 4.17% (upper mid).	1M return: 4.14% (bottom quartile).	1M return: 4.16% (lower mid).	1M return: 4.22% (upper mid).	1M return: 4.28% (top quartile).
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: 2.53 (upper mid).	Sharpe: 2.25 (bottom quartile).	Sharpe: 2.62 (top quartile).	Sharpe: 2.50 (upper mid).	Sharpe: 2.50 (lower mid).	Sharpe: 2.48 (bottom quartile).	Sharpe: 2.50 (lower mid).	Sharpe: 2.55 (top quartile).

SBI Gold Fund

Highest AUM (₹4,740 Cr).
Established history (13+ yrs).
Rating: 2★ (top quartile).
Risk profile: Moderately High.
5Y return: 13.45% (upper mid).
3Y return: 24.72% (top quartile).
1Y return: 40.32% (top quartile).
1M return: 4.16% (lower mid).
Alpha: 0.00 (top quartile).
Sharpe: 2.53 (upper mid).

IDBI Gold Fund

Bottom quartile AUM (₹214 Cr).
Established history (13+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 13.58% (top quartile).
3Y return: 24.63% (top quartile).
1Y return: 40.30% (upper mid).
1M return: 4.15% (bottom quartile).
Alpha: 0.00 (top quartile).
Sharpe: 2.25 (bottom quartile).

Aditya Birla Sun Life Gold Fund

Bottom quartile AUM (₹663 Cr).
Established history (13+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 13.43% (upper mid).
3Y return: 24.50% (upper mid).
1Y return: 40.32% (upper mid).
1M return: 4.25% (top quartile).
Alpha: 0.00 (upper mid).
Sharpe: 2.62 (top quartile).

Axis Gold Fund

Lower mid AUM (₹1,180 Cr).
Established history (13+ yrs).
Rating: 1★ (upper mid).
Risk profile: Moderately High.
5Y return: 13.54% (top quartile).
3Y return: 24.48% (upper mid).
1Y return: 39.85% (bottom quartile).
1M return: 4.17% (upper mid).
Alpha: 0.00 (upper mid).
Sharpe: 2.50 (upper mid).

HDFC Gold Fund

Top quartile AUM (₹4,537 Cr).
Established history (13+ yrs).
Rating: 1★ (lower mid).
Risk profile: Moderately High.
5Y return: 13.30% (lower mid).
3Y return: 24.43% (lower mid).
1Y return: 40.22% (lower mid).
1M return: 4.14% (bottom quartile).
Alpha: 0.00 (lower mid).
Sharpe: 2.50 (lower mid).

Nippon India Gold Savings Fund

Upper mid AUM (₹3,248 Cr).
Oldest track record among peers (14 yrs).
Rating: 2★ (upper mid).
Risk profile: Moderately High.
5Y return: 13.19% (bottom quartile).
3Y return: 24.42% (lower mid).
1Y return: 40.39% (top quartile).
1M return: 4.16% (lower mid).
Alpha: 0.00 (lower mid).
Sharpe: 2.48 (bottom quartile).

ICICI Prudential Regular Gold Savings Fund

Lower mid AUM (₹2,384 Cr).
Established history (13+ yrs).
Rating: 1★ (lower mid).
Risk profile: Moderately High.
5Y return: 13.34% (lower mid).
3Y return: 24.40% (bottom quartile).
1Y return: 40.27% (lower mid).
1M return: 4.22% (upper mid).
Alpha: 0.00 (bottom quartile).
Sharpe: 2.50 (lower mid).

Kotak Gold Fund

Upper mid AUM (₹3,302 Cr).
Established history (14+ yrs).
Rating: 1★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 13.21% (bottom quartile).
3Y return: 24.19% (bottom quartile).
1Y return: 39.95% (bottom quartile).
1M return: 4.28% (top quartile).
Alpha: 0.00 (bottom quartile).
Sharpe: 2.55 (top quartile).

*Above is list of top Gold Funds having AUM/Net Assets > 25 Crore ordered based on 3 year Calendar year returns.

About the Fincash Research Team

At Fincash, our mission is to help investors make informed, confident decisions. With over 9 years in Mutual Fund distribution, our team blends deep industry expertise with a commitment to transparency, accuracy, and investor education.

Who We Are

AMFI Registration No.: 112358
MCA CIN: U74999MH2016PTC282153
Location: Thane, Maharashtra, India
Experience: 9+ years in Mutual Fund distribution

Our Expertise

Certified Mutual Fund Distributors with hands-on advisory experience.
Market analysts tracking performance, macro trends, and sectors.
Data specialists processing NAVs, allocations, and risk metrics from Morning Star.

Our Research Process

Data sourcing: SEBI-registered fund houses & verified third-party provider Morning Star
Screening: Returns, manager track record, expenses, sector mix, risk-adjusted metrics.
Expert review: Senior team members review every article and list for accuracy.
Updates: Regular refreshes so performance data reflects current market conditions.

Why Trust Us

Regulated & compliant: AMFI-registered and MCA-incorporated.
Investor-first: No pay-to-promote lists; suitability and performance drive coverage.
Education-focused: We simplify complex concepts for everyday investors.

Disclaimer

Content is for educational and informational purposes only and is not investment advice. Please consider your risk profile and consult a financial advisor before investing.

All the funds mentioned above are ideal, we are giving you detailed analysis of 5 funds.

1. SBI Gold Fund

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

Highest AUM (₹4,740 Cr).
Oldest track record among peers (13 yrs).
Rating: 2★ (upper mid).
Risk profile: Moderately High.
5Y return: 13.45% (lower mid).
3Y return: 24.72% (top quartile).
1Y return: 40.32% (top quartile).
1M return: 4.16% (lower mid).
Alpha: 0.00 (top quartile).
Sharpe: 2.53 (upper mid).
Information ratio: 0.00 (top quartile).
Top bond sector: Cash Equivalent.
Largest holding SBI Gold ETF (~100.2%).
Top-3 holdings concentration ~101.2%.

Below is the key information for SBI Gold Fund

SBI Gold Fund Growth
Launch Date	12 Sep 11
NAV (29 Aug 25)	₹30.0749 ↑ 0.32 (1.08 %)
Net Assets (Cr)	₹4,740 on 31 Jul 25
Category	Gold - Gold
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	Moderately High
Expense Ratio	0.3
Sharpe Ratio	2.53
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 Jul 20	₹10,000
31 Jul 21	₹8,893
31 Jul 22	₹9,337
31 Jul 23	₹10,723
31 Jul 24	₹12,421
31 Jul 25	₹17,329

SBI Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080 Invest Now

Returns for SBI Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Aug 25

Duration	Returns
1 Month	4.2%
3 Month	7.7%
6 Month	19.5%
1 Year	40.3%
3 Year	24.7%
5 Year	13.4%
10 Year
15 Year
Since launch	8.2%

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	13.89 Yr.

Data below for SBI Gold Fund as on 31 Jul 25

Asset Allocation

Asset Class	Value
Cash	1.19%
Other	98.81%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
SBI Gold ETF - \| -	100%	₹4,419 Cr	536,211,834 ↑ 29,700,000
Net Receivable / Payable CBLO \| -	1%	-₹27 Cr
Treps CBLO/Reverse Repo \| -	0%	₹17 Cr

2. IDBI Gold Fund

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

Bottom quartile AUM (₹214 Cr).
Established history (13+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 13.58% (top quartile).
3Y return: 24.63% (upper mid).
1Y return: 40.30% (lower mid).
1M return: 4.15% (bottom quartile).
Alpha: 0.00 (upper mid).
Sharpe: 2.25 (bottom quartile).
Information ratio: 0.00 (upper mid).
Top bond sector: Cash Equivalent.
Largest holding LIC MF Gold ETF (~99.9%).
Top-3 holdings concentration ~105.8%.

Below is the key information for IDBI Gold Fund

IDBI Gold Fund Growth
Launch Date	14 Aug 12
NAV (29 Aug 25)	₹26.7506 ↑ 0.37 (1.41 %)
Net Assets (Cr)	₹214 on 31 Jul 25
Category	Gold - Gold
AMC	IDBI Asset Management Limited
Rating	Not Rated
Risk	Moderately High
Expense Ratio	0.64
Sharpe Ratio	2.25
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 Jul 20	₹10,000
31 Jul 21	₹8,555
31 Jul 22	₹8,924
31 Jul 23	₹10,298
31 Jul 24	₹12,071
31 Jul 25	₹16,640

IDBI Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080 Invest Now

Returns for IDBI Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Aug 25

Duration	Returns
1 Month	4.1%
3 Month	7.5%
6 Month	19.5%
1 Year	40.3%
3 Year	24.6%
5 Year	13.6%
10 Year
15 Year
Since launch	7.8%

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	1.17 Yr.

Data below for IDBI Gold Fund as on 31 Jul 25

Asset Allocation

Asset Class	Value
Cash	0.85%
Other	99.15%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
LIC MF Gold ETF - \| -	100%	₹174 Cr	199,194 ↑ 27,875
Treps CBLO/Reverse Repo \| -	3%	₹5 Cr
Net Receivables / (Payables) Net Current Assets \| -	3%	-₹5 Cr

3. Aditya Birla Sun Life Gold Fund

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

Bottom quartile AUM (₹663 Cr).
Established history (13+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 13.43% (bottom quartile).
3Y return: 24.50% (lower mid).
1Y return: 40.32% (upper mid).
1M return: 4.25% (top quartile).
Alpha: 0.00 (lower mid).
Sharpe: 2.62 (top quartile).
Information ratio: 0.00 (lower mid).
Top bond sector: Cash Equivalent.
Largest holding Aditya BSL Gold ETF (~100.0%).
Top-3 holdings concentration ~100.6%.

Below is the key information for Aditya Birla Sun Life Gold Fund

Aditya Birla Sun Life Gold Fund Growth
Launch Date	20 Mar 12
NAV (29 Aug 25)	₹29.9113 ↑ 0.30 (1.00 %)
Net Assets (Cr)	₹663 on 31 Jul 25
Category	Gold - Gold
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	0.51
Sharpe Ratio	2.62
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 Jul 20	₹10,000
31 Jul 21	₹8,893
31 Jul 22	₹9,380
31 Jul 23	₹10,712
31 Jul 24	₹12,357
31 Jul 25	₹17,250

Aditya Birla Sun Life Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080 Invest Now

Returns for Aditya Birla Sun Life Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Aug 25

Duration	Returns
1 Month	4.3%
3 Month	7.9%
6 Month	19.8%
1 Year	40.3%
3 Year	24.5%
5 Year	13.4%
10 Year
15 Year
Since launch	8.5%

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	0.58 Yr.

Data below for Aditya Birla Sun Life Gold Fund as on 31 Jul 25

Asset Allocation

Asset Class	Value
Cash	1.51%
Other	98.49%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Aditya BSL Gold ETF - \| -	100%	₹636 Cr	75,025,724 ↑ 2,384,690
Net Receivables / (Payables) Net Current Assets \| -	0%	-₹2 Cr
Clearing Corporation Of India Limited CBLO/Reverse Repo \| -	0%	₹2 Cr

4. Axis Gold Fund

To generate returns that closely correspond to returns generated by Axis Gold ETF.

Research Highlights for Axis Gold Fund

Lower mid AUM (₹1,180 Cr).
Established history (13+ yrs).
Rating: 1★ (lower mid).
Risk profile: Moderately High.
5Y return: 13.54% (upper mid).
3Y return: 24.48% (bottom quartile).
1Y return: 39.85% (bottom quartile).
1M return: 4.17% (upper mid).
Alpha: 0.00 (bottom quartile).
Sharpe: 2.50 (lower mid).
Information ratio: 0.00 (bottom quartile).
Top bond sector: Cash Equivalent.
Largest holding Axis Gold ETF (~95.8%).
Top-3 holdings concentration ~100.5%.

Below is the key information for Axis Gold Fund

Axis Gold Fund Growth
Launch Date	20 Oct 11
NAV (29 Aug 25)	₹29.9607 ↑ 0.36 (1.22 %)
Net Assets (Cr)	₹1,180 on 31 Jul 25
Category	Gold - Gold
AMC	Axis Asset Management Company Limited
Rating	☆
Risk	Moderately High
Expense Ratio	0.5
Sharpe Ratio	2.5
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
31 Jul 20	₹10,000
31 Jul 21	₹8,988
31 Jul 22	₹9,448
31 Jul 23	₹10,882
31 Jul 24	₹12,595
31 Jul 25	₹17,469

Axis Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080 Invest Now

Returns for Axis Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Aug 25

Duration	Returns
1 Month	4.2%
3 Month	7.7%
6 Month	19.7%
1 Year	39.9%
3 Year	24.5%
5 Year	13.5%
10 Year
15 Year
Since launch	8.2%

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	3.73 Yr.
Pratik Tibrewal	1 Feb 25	0.49 Yr.

Data below for Axis Gold Fund as on 31 Jul 25

Asset Allocation

Asset Class	Value
Cash	5.62%
Other	94.38%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Axis Gold ETF - \| -	96%	₹1,074 Cr	133,339,204 ↑ 3,300,766
Clearing Corporation Of India Ltd CBLO/Reverse Repo \| -	4%	₹50 Cr
Net Receivables / (Payables) CBLO \| -	0%	-₹3 Cr

5. HDFC Gold Fund

To seek capital appreciation by investing in units of HDFC Gold Exchange Traded Fund (HGETF).

Research Highlights for HDFC Gold Fund

Upper mid AUM (₹4,537 Cr).
Established history (13+ yrs).
Rating: 1★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 13.30% (bottom quartile).
3Y return: 24.43% (bottom quartile).
1Y return: 40.22% (bottom quartile).
1M return: 4.14% (bottom quartile).
Alpha: 0.00 (bottom quartile).
Sharpe: 2.50 (bottom quartile).
Information ratio: 0.00 (bottom quartile).
Top bond sector: Cash Equivalent.
Largest holding HDFC Gold ETF (~100.2%).
Top-3 holdings concentration ~100.7%.

Below is the key information for HDFC Gold Fund

HDFC Gold Fund Growth
Launch Date	24 Oct 11
NAV (29 Aug 25)	₹30.7365 ↑ 0.33 (1.08 %)
Net Assets (Cr)	₹4,537 on 31 Jul 25
Category	Gold - Gold
AMC	HDFC Asset Management Company Limited
Rating	☆
Risk	Moderately High
Expense Ratio	0.49
Sharpe Ratio	2.5
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 Jul 20	₹10,000
31 Jul 21	₹8,862
31 Jul 22	₹9,268
31 Jul 23	₹10,643
31 Jul 24	₹12,372
31 Jul 25	₹17,156

HDFC Gold Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080 Invest Now

Returns for HDFC Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Aug 25

Duration	Returns
1 Month	4.1%
3 Month	7.7%
6 Month	20%
1 Year	40.2%
3 Year	24.4%
5 Year	13.3%
10 Year
15 Year
Since launch	8.5%

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	2.46 Yr.
Nandita Menezes	29 Mar 25	0.34 Yr.

Data below for HDFC Gold Fund as on 31 Jul 25

Asset Allocation

Asset Class	Value
Cash	1.39%
Other	98.61%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Gold ETF - \| -	100%	₹4,280 Cr	518,569,445 ↑ 21,282,499
Net Current Assets Net Current Assets \| -	0%	-₹14 Cr
Treps - Tri-Party Repo CBLO/Reverse Repo \| -	0%	₹6 Cr

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!

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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.

Disclaimer:
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.