Traditionally, gold has been one of the assets investors rely on to stabilize their portfolios. You might be looking to invest in gold mutual funds since they offer a hedge against inflation. Amidst volatility in equity markets, investing in gold funds can balance your portfolio with stability.
Gold mutual funds have emerged as a safer and more convenient alternative to physical gold. If you are looking to invest in gold-backed assets, check out the funds we recommended in this blog.
List of 5 Gold Funds to Invest in 2025
We have curated this list of the best gold mutual funds that look promising for investors.
1. HDFC Gold ETF Fund Of Fund
The HDFC Gold Fund brings you exposure to gold where you can capitalize on its value appreciation. This popular mutual fund primarily invests in units of gold ETFs.
If you are someone who prioritizes low-risk exposure to gold, this mutual fund can deliver stable returns over time. The fund managers track the prices of gold efficiently, which makes it a suitable pick for conservative investors.
- AUM: INR 2,714.53 crore
- NAV: INR 24.38
- Expense Ratio: 18%
- 1-Year Return: 08%
- 3-Year Return: 62%
- 5-Year Return: 22%
2. SBI Gold Fund
Investors looking to diversify their portfolios with a stable investment in gold must check out the SBI Gold Fund. This fund channels its investments into gold ETFs, ensuring that its performance closely aligns with the movements of gold prices.
The robust management and meticulous approach to portfolio allocation of SBI make this fund a suitable option for investors looking for long-term wealth preservation.
- AUM: INR 2,516.45 crore
- NAV: INR 23.85
- Expense Ratio: 10%
- 1-Year Return: 34%
- 3-Year Return: 69%
- 5-Year Return: 13%
3. Kotak Gold Fund
With Kotak Gold Fund, investors enjoy an accessible avenue for investing in gold without trading physical gold or ETFs. Thus, the fund allows you to benefit from the stability and growth potential of the precious metal.
The fund managers prioritize disciplined portfolio management, ensuring that the returns correspond with the price trends of actual gold.
- AUM: INR 2,250.50 crore
- NAV: INR 31.60
- Expense Ratio: 16 %
- 1-Year Return: 28%
- 3-Year Return: 28%
- 5-Year Return: 13%
4. Nippon India Gold Savings Fund
The Nippon India Gold Savings Fund is ideal for those willing to ride the growth potential of gold without directly holding the asset. This fund primarily invests in gold ETFs, which are managed professionally to replicate the movements of gold prices.
With its liquidity and low transaction costs, it serves as a smart option for those looking for both convenience and diversification in their portfolios.
- AUM: INR 2,192.59 crore
- NAV: INR 31.21
- Expense Ratio: 95 %
- 1-Year Return: 88%
- 3-Year Return: 51%
- 5-Year Return: 93 %
5. ICICI Prudential Regular Gold Savings Fund
The ICICI Prudential Regular Gold Savings Fund brings you an opportunity to invest in gold ETFs. It is managed with a strategic balance between risk and reward. The fund caters to investors who prioritize wealth preservation while capitalizing on the growth potential of gold.
- AUM: INR 1,359.58 crore
- NAV: INR 24.94
- Expense Ratio: 59 %
- 1-Year Return: 22%
- 2-Year Return:58%
- 5-Year Return: 97 %
Conclusion
Investing in gold funds provides you with a hedge against uncertain market conditions and volatility. All the gold funds we shortlisted for you are backed by seasoned management teams. Choose your gold mutual funds strategically and balance your portfolio. Create a SIP in one of these gold mutual funds on a reputed investment platform.
