+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 (%) 2025 (%) Aditya Birla Sun Life Gold Fund Growth ₹40.6757
↓ -0.55 ₹1,805 -4.8 -6.2 16 30.7 22.9 72 SBI Gold Fund Growth ₹40.8788
↓ -0.70 ₹17,423 -5.3 -6.6 15.9 30.7 22.9 71.5 ICICI Prudential Regular Gold Savings Fund Growth ₹43.1712
↓ -0.83 ₹7,067 -5.4 -6.8 15.9 30.5 22.7 72 Nippon India Gold Savings Fund Growth ₹53.4093
↓ -0.89 ₹7,353 -5.2 -6.4 15.7 30.5 22.7 71.2 HDFC Gold Fund Growth ₹41.6767
↓ -0.69 ₹12,013 -5.1 -6.4 15.6 30.5 22.7 71.3 Invesco India Gold Fund Growth ₹39.3279
↓ -0.77 ₹507 -4.6 -5.9 16.5 30.3 22.7 69.6 Axis Gold Fund Growth ₹40.4698
↓ -0.82 ₹3,134 -5.9 -6.8 15.5 30.2 22.7 69.8 Kotak Gold Fund Growth ₹53.4926
↓ -1.05 ₹6,996 -5.3 -6.6 15.4 30.2 22.3 70.4 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Nov 26 Research Highlights & Commentary of 8 Funds showcased
Commentary Aditya Birla Sun Life Gold Fund SBI Gold Fund ICICI Prudential Regular Gold Savings Fund Nippon India Gold Savings Fund HDFC Gold Fund Invesco India Gold Fund Axis Gold Fund Kotak Gold Fund Point 1 Bottom quartile AUM (₹1,805 Cr). Highest AUM (₹17,423 Cr). Upper mid AUM (₹7,067 Cr). Upper mid AUM (₹7,353 Cr). Top quartile AUM (₹12,013 Cr). Bottom quartile AUM (₹507 Cr). Lower mid AUM (₹3,134 Cr). Lower mid AUM (₹6,996 Cr). Point 2 Established history (14+ yrs). Oldest track record among peers (15 yrs). Established history (15+ yrs). Established history (15+ yrs). Established history (15+ yrs). Established history (14+ yrs). Established history (15+ yrs). Established history (15+ yrs). Point 3 Top rated. Rating: 2★ (upper mid). Rating: 1★ (lower mid). Rating: 2★ (upper mid). Rating: 1★ (lower mid). Rating: 3★ (top quartile). Rating: 1★ (bottom quartile). 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: 22.89% (top quartile). 5Y return: 22.95% (top quartile). 5Y return: 22.73% (upper mid). 5Y return: 22.66% (bottom quartile). 5Y return: 22.67% (lower mid). 5Y return: 22.69% (lower mid). 5Y return: 22.69% (upper mid). 5Y return: 22.33% (bottom quartile). Point 6 3Y return: 30.70% (top quartile). 3Y return: 30.67% (top quartile). 3Y return: 30.55% (upper mid). 3Y return: 30.49% (upper mid). 3Y return: 30.46% (lower mid). 3Y return: 30.30% (lower mid). 3Y return: 30.22% (bottom quartile). 3Y return: 30.20% (bottom quartile). Point 7 1Y return: 16.03% (top quartile). 1Y return: 15.89% (upper mid). 1Y return: 15.85% (upper mid). 1Y return: 15.74% (lower mid). 1Y return: 15.61% (lower mid). 1Y return: 16.52% (top quartile). 1Y return: 15.51% (bottom quartile). 1Y return: 15.42% (bottom quartile). Point 8 1M return: -4.25% (top quartile). 1M return: -4.45% (lower mid). 1M return: -4.45% (lower mid). 1M return: -4.35% (upper mid). 1M return: -4.44% (upper mid). 1M return: -4.33% (top quartile). 1M return: -4.56% (bottom quartile). 1M return: -4.67% (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: 0.73 (bottom quartile). Sharpe: 0.79 (upper mid). Sharpe: 0.75 (lower mid). Sharpe: 0.74 (bottom quartile). Sharpe: 0.78 (lower mid). Sharpe: 0.83 (top quartile). Sharpe: 0.82 (upper mid). Sharpe: 0.85 (top quartile). Aditya Birla Sun Life Gold Fund
SBI Gold Fund
ICICI Prudential Regular Gold Savings Fund
Nippon India Gold Savings Fund
HDFC Gold Fund
Invesco India Gold Fund
Axis Gold Fund
Kotak Gold Fund
All the funds mentioned above are ideal, we are giving you detailed analysis of 5 funds.
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 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 1. Aditya Birla Sun Life Gold Fund
Aditya Birla Sun Life Gold Fund
Growth Launch Date 20 Mar 12 NAV (06 Nov 26) ₹40.6757 ↓ -0.55 (-1.35 %) Net Assets (Cr) ₹1,805 on 30 Sep 26 Category Gold - Gold AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.51 Sharpe Ratio 0.73 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 Oct 21 ₹10,000 31 Oct 22 ₹10,360 31 Oct 23 ₹12,413 31 Oct 24 ₹15,888 31 Oct 25 ₹23,647 31 Oct 26 ₹27,288 Returns for Aditya Birla Sun Life Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month -4.3% 3 Month -4.8% 6 Month -6.2% 1 Year 16% 3 Year 30.7% 5 Year 22.9% 10 Year 15 Year Since launch 10.1% Historical performance (Yearly) on absolute basis
Year Returns 2025 72% 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% Fund Manager information for Aditya Birla Sun Life Gold Fund
Name Since Tenure Mehul Dama 7 Jul 26 0.24 Yr. Priya Sridhar 31 Dec 24 1.75 Yr. Data below for Aditya Birla Sun Life Gold Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 1.36% Other 98.64% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Gold ETF
- | -100% ₹1,808 Cr 139,672,562
↑ 4,059,181 Net Receivable / Payable
CBLO | -1% -₹12 Cr Treps
CBLO/Reverse Repo | -0% ₹8 Cr 2. SBI Gold Fund
SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (06 Nov 26) ₹40.8788 ↓ -0.70 (-1.69 %) Net Assets (Cr) ₹17,423 on 30 Sep 26 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.33 Sharpe Ratio 0.79 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 Oct 21 ₹10,000 31 Oct 22 ₹10,409 31 Oct 23 ₹12,506 31 Oct 24 ₹16,043 31 Oct 25 ₹23,974 31 Oct 26 ₹27,533 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month -4.4% 3 Month -5.3% 6 Month -6.6% 1 Year 15.9% 3 Year 30.7% 5 Year 22.9% 10 Year 15 Year Since launch 9.7% 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 0.59 Yr. Data below for SBI Gold Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 1.5% Other 98.5% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹17,451 Cr 1,389,274,664
↑ 45,015,601 Net Receivable / Payable
CBLO | -0% -₹78 Cr Treps
CBLO/Reverse Repo | -0% ₹50 Cr 3. ICICI Prudential Regular Gold Savings Fund
ICICI Prudential Regular Gold Savings Fund
Growth Launch Date 11 Oct 11 NAV (06 Nov 26) ₹43.1712 ↓ -0.83 (-1.89 %) Net Assets (Cr) ₹7,067 on 30 Sep 26 Category Gold - Gold AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.47 Sharpe Ratio 0.75 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 Oct 21 ₹10,000 31 Oct 22 ₹10,384 31 Oct 23 ₹12,439 31 Oct 24 ₹15,973 31 Oct 25 ₹23,796 31 Oct 26 ₹27,359 Returns for ICICI Prudential Regular Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month -4.5% 3 Month -5.4% 6 Month -6.8% 1 Year 15.9% 3 Year 30.5% 5 Year 22.7% 10 Year 15 Year Since launch 10.2% 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 14.02 Yr. Nishit Patel 29 Dec 20 5.76 Yr. Ashwini Bharucha 1 Nov 25 0.91 Yr. Venus Ahuja 1 Nov 25 0.91 Yr. Data below for ICICI Prudential Regular Gold Savings Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 1.81% Other 98.19% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -100% ₹7,064 Cr 560,288,419
↑ 17,773,475 Treps
CBLO/Reverse Repo | -1% ₹47 Cr Net Current Assets
Net Current Assets | -1% -₹44 Cr 4. Nippon India Gold Savings Fund
Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (06 Nov 26) ₹53.4093 ↓ -0.89 (-1.63 %) Net Assets (Cr) ₹7,353 on 30 Sep 26 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.35 Sharpe Ratio 0.74 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 Oct 21 ₹10,000 31 Oct 22 ₹10,373 31 Oct 23 ₹12,450 31 Oct 24 ₹15,947 31 Oct 25 ₹23,746 31 Oct 26 ₹27,266 Returns for Nippon India Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month -4.3% 3 Month -5.2% 6 Month -6.4% 1 Year 15.7% 3 Year 30.5% 5 Year 22.7% 10 Year 15 Year Since launch 11.3% 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 2.77 Yr. Data below for Nippon India Gold Savings Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 1.5% Other 98.5% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | -100% ₹7,355 Cr 604,928,540
↑ 7,622,968 Net Current Assets
Net Current Assets | -0% -₹12 Cr Triparty Repo
CBLO/Reverse Repo | -0% ₹10 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 Cr Cash
Net Current Assets | -0% ₹0 Cr 00 5. HDFC Gold Fund
HDFC Gold Fund
Growth Launch Date 24 Oct 11 NAV (06 Nov 26) ₹41.6767 ↓ -0.69 (-1.63 %) Net Assets (Cr) ₹12,013 on 30 Sep 26 Category Gold - Gold AMC HDFC Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.49 Sharpe Ratio 0.78 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 Oct 21 ₹10,000 31 Oct 22 ₹10,401 31 Oct 23 ₹12,486 31 Oct 24 ₹15,976 31 Oct 25 ₹23,823 31 Oct 26 ₹27,347 Returns for HDFC Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month -4.4% 3 Month -5.1% 6 Month -6.4% 1 Year 15.6% 3 Year 30.5% 5 Year 22.7% 10 Year 15 Year Since launch 10% 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 3.63 Yr. Nandita Menezes 29 Mar 25 1.51 Yr. Data below for HDFC Gold Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 1.29% Other 98.71% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Gold ETF
- | -100% ₹12,027 Cr 956,432,783
↑ 18,155,615 Net Current Assets
Net Current Assets | -0% -₹29 Cr Treps - Tri-Party Repo
CBLO/Reverse Repo | -0% ₹15 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