+91-22-489139098 Best Gold Mutual Funds 2026
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 (2026)
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) SBI Gold Fund Growth ₹44.2435
↑ 1.70 ₹10,775 19 53.3 87.2 36.8 23.8 71.5 Axis Gold Fund Growth ₹44.0609
↑ 1.50 ₹2,167 19.5 53.7 86.7 36.7 23.7 69.8 HDFC Gold Fund Growth ₹45.0887
↑ 1.63 ₹8,501 18.7 53 86.7 36.6 23.5 71.3 Aditya Birla Sun Life Gold Fund Growth ₹43.6955
↑ 1.76 ₹1,266 18.6 52.3 87.3 36.4 23.4 72 IDBI Gold Fund Growth ₹38.9357
↑ 1.43 ₹623 18.2 51.7 85.7 36.3 23.5 79 ICICI Prudential Regular Gold Savings Fund Growth ₹46.2486
↑ 1.29 ₹4,482 18.5 51.4 85 36.2 23.3 72 Kotak Gold Fund Growth ₹57.2338
↑ 1.79 ₹5,213 17.4 51.1 84.4 35.9 22.9 70.4 Nippon India Gold Savings Fund Growth ₹56.0491
↑ 0.25 ₹5,301 15.6 48.5 82 35.1 22.7 71.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Jan 26 Research Highlights & Commentary of 8 Funds showcased
Commentary SBI Gold Fund Axis Gold Fund HDFC Gold Fund Aditya Birla Sun Life Gold Fund IDBI Gold Fund ICICI Prudential Regular Gold Savings Fund Kotak Gold Fund Nippon India Gold Savings Fund Point 1 Highest AUM (₹10,775 Cr). Lower mid AUM (₹2,167 Cr). Top quartile AUM (₹8,501 Cr). Bottom quartile AUM (₹1,266 Cr). Bottom quartile AUM (₹623 Cr). Lower mid AUM (₹4,482 Cr). Upper mid AUM (₹5,213 Cr). Upper mid AUM (₹5,301 Cr). Point 2 Oldest track record among peers (14 yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (13+ yrs). Established history (13+ yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (14+ yrs). Point 3 Rating: 2★ (top quartile). Rating: 1★ (upper mid). Rating: 1★ (lower mid). Top rated. Not Rated. Rating: 1★ (lower mid). Rating: 1★ (bottom quartile). Rating: 2★ (upper mid). 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: 23.76% (top quartile). 5Y return: 23.71% (top quartile). 5Y return: 23.48% (upper mid). 5Y return: 23.40% (lower mid). 5Y return: 23.52% (upper mid). 5Y return: 23.31% (lower mid). 5Y return: 22.95% (bottom quartile). 5Y return: 22.66% (bottom quartile). Point 6 3Y return: 36.82% (top quartile). 3Y return: 36.71% (top quartile). 3Y return: 36.56% (upper mid). 3Y return: 36.38% (upper mid). 3Y return: 36.33% (lower mid). 3Y return: 36.23% (lower mid). 3Y return: 35.87% (bottom quartile). 3Y return: 35.14% (bottom quartile). Point 7 1Y return: 87.23% (top quartile). 1Y return: 86.74% (upper mid). 1Y return: 86.75% (upper mid). 1Y return: 87.27% (top quartile). 1Y return: 85.66% (lower mid). 1Y return: 85.00% (lower mid). 1Y return: 84.38% (bottom quartile). 1Y return: 81.98% (bottom quartile). Point 8 1M return: 14.47% (top quartile). 1M return: 14.55% (top quartile). 1M return: 14.09% (upper mid). 1M return: 13.61% (upper mid). 1M return: 13.12% (lower mid). 1M return: 12.99% (lower mid). 1M return: 12.75% (bottom quartile). 1M return: 10.72% (bottom 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: 4.38 (lower mid). Sharpe: 4.36 (lower mid). Sharpe: 4.39 (upper mid). Sharpe: 4.49 (top quartile). Sharpe: 4.30 (bottom quartile). Sharpe: 4.33 (bottom quartile). Sharpe: 4.63 (top quartile). Sharpe: 4.46 (upper mid). SBI Gold Fund
Axis Gold Fund
HDFC Gold Fund
Aditya Birla Sun Life Gold Fund
IDBI Gold Fund
ICICI Prudential Regular Gold Savings Fund
Kotak Gold Fund
Nippon India 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 To generate returns that closely correspond to returns generated by Axis Gold ETF. Research Highlights for Axis Gold Fund Below is the key information for Axis 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 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 1. SBI Gold Fund
SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (20 Jan 26) ₹44.2435 ↑ 1.70 (4.00 %) 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 Dec 20 ₹10,000 31 Dec 21 ₹9,431 31 Dec 22 ₹10,624 31 Dec 23 ₹12,126 31 Dec 24 ₹14,507 31 Dec 25 ₹24,880 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Jan 26 Duration Returns 1 Month 14.5% 3 Month 19% 6 Month 53.3% 1 Year 87.2% 3 Year 36.8% 5 Year 23.8% 10 Year 15 Year Since launch 10.9% 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. Axis Gold Fund
Axis Gold Fund
Growth Launch Date 20 Oct 11 NAV (20 Jan 26) ₹44.0609 ↑ 1.50 (3.51 %) Net Assets (Cr) ₹2,167 on 31 Dec 25 Category Gold - Gold AMC Axis Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.5 Sharpe Ratio 4.36 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 Dec 20 ₹10,000 31 Dec 21 ₹9,530 31 Dec 22 ₹10,720 31 Dec 23 ₹12,290 31 Dec 24 ₹14,647 31 Dec 25 ₹24,866 Returns for Axis Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Jan 26 Duration Returns 1 Month 14.6% 3 Month 19.5% 6 Month 53.7% 1 Year 86.7% 3 Year 36.7% 5 Year 23.7% 10 Year 15 Year Since launch 11% Historical performance (Yearly) on absolute basis
Year Returns 2024 69.8% 2023 19.2% 2022 14.7% 2021 12.5% 2020 -4.7% 2019 26.9% 2018 23.1% 2017 8.3% 2016 0.7% 2015 10.7% Fund Manager information for Axis Gold Fund
Name Since Tenure Aditya Pagaria 9 Nov 21 4.15 Yr. Pratik Tibrewal 1 Feb 25 0.91 Yr. Data below for Axis Gold Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 1.48% Other 98.52% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Gold ETF
- | -100% ₹2,168 Cr 195,829,138
↑ 10,476,454 Net Receivables / (Payables)
CBLO | -1% -₹13 Cr Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -1% ₹12 Cr 3. HDFC Gold Fund
HDFC Gold Fund
Growth Launch Date 24 Oct 11 NAV (20 Jan 26) ₹45.0887 ↑ 1.63 (3.75 %) 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 Dec 20 ₹10,000 31 Dec 21 ₹9,454 31 Dec 22 ₹10,654 31 Dec 23 ₹12,158 31 Dec 24 ₹14,461 31 Dec 25 ₹24,770 Returns for HDFC Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Jan 26 Duration Returns 1 Month 14.1% 3 Month 18.7% 6 Month 53% 1 Year 86.7% 3 Year 36.6% 5 Year 23.5% 10 Year 15 Year Since launch 11.2% 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 4. Aditya Birla Sun Life Gold Fund
Aditya Birla Sun Life Gold Fund
Growth Launch Date 20 Mar 12 NAV (20 Jan 26) ₹43.6955 ↑ 1.76 (4.19 %) 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 Dec 20 ₹10,000 31 Dec 21 ₹9,496 31 Dec 22 ₹10,665 31 Dec 23 ₹12,209 31 Dec 24 ₹14,492 31 Dec 25 ₹24,925 Returns for Aditya Birla Sun Life Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Jan 26 Duration Returns 1 Month 13.6% 3 Month 18.6% 6 Month 52.3% 1 Year 87.3% 3 Year 36.4% 5 Year 23.4% 10 Year 15 Year Since launch 11.2% 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 5. IDBI Gold Fund
IDBI Gold Fund
Growth Launch Date 14 Aug 12 NAV (20 Jan 26) ₹38.9357 ↑ 1.43 (3.82 %) Net Assets (Cr) ₹623 on 31 Dec 25 Category Gold - Gold AMC IDBI Asset Management Limited Rating Risk Moderately High Expense Ratio 0.64 Sharpe Ratio 4.3 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 Dec 20 ₹10,000 31 Dec 21 ₹9,603 31 Dec 22 ₹10,753 31 Dec 23 ₹12,340 31 Dec 24 ₹14,642 31 Dec 25 ₹26,206 Returns for IDBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Jan 26 Duration Returns 1 Month 13.1% 3 Month 18.2% 6 Month 51.7% 1 Year 85.7% 3 Year 36.3% 5 Year 23.5% 10 Year 15 Year Since launch 10.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 79% 2023 18.7% 2022 14.8% 2021 12% 2020 -4% 2019 24.2% 2018 21.6% 2017 5.8% 2016 1.4% 2015 8.3% Fund Manager information for IDBI Gold Fund
Name Since Tenure Sumit Bhatnagar 1 Jun 24 1.59 Yr. Data below for IDBI Gold Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 2.77% Other 97.23% Top Securities Holdings / Portfolio
Name Holding Value Quantity LIC MF Gold ETF
- | -99% ₹617 Cr 493,852
↑ 35,100 Treps
CBLO/Reverse Repo | -2% ₹13 Cr Net Receivables / (Payables)
Net Current Assets | -1% -₹7 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!
Is It the Right Time to Invest in Gold Mutual Funds in 2026?
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