Gold mutual funds are specific funds that deploy investments in gold-related assets like ETFs. This helps you gain exposure to gold prices without any physical ownership. They are liquid and convenient alternatives to investing in physical gold, while helping bypass concerns relating to purity, storage, theft, etc. Regular investments via SIPs (systematic investment plans) are also possible in these instruments.

They are basically a fund of funds which pools investors’ money to purchase units in gold ETFs. These ETFs buy and hold physical gold bullion or related contracts to support the units. So, you essentially purchase units of the fund that owns gold ETFs.

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List of Gold Mutual Funds in India

Fund Name	Category	Risk	NAV	Expense Ratio	1Y Returns	3Y Returns	5Y Returns	Rating	Fund Size (in Cr)	Exit Load
UTI Gold ETF FoF Fund	Commodities	Very High	23.24	0.18	55.6%	32.1%	NA	5	₹608	Exit load of 1%, if redeemed within 15 days
SBI Gold Fund	Commodities	Very High	36.90	0.1	55.5%	31.9%	17.1%	5	₹7,033	Exit load of 1% if redeemed within 15 days.
Tata Gold ETF FoF Fund	Commodities	High	18.61	0.25	53.3%	NA	NA	5	₹478	Exit load of 0.5%, if redeemed within 7 days.
Quantum Gold Savings Fund	Commodities	High	46.11	0.04	55.3%	31.7%	16.9%	4	₹328	-
Axis Gold Fund	Commodities	Very High	38.08	0.17	54.8%	31.4%	17.1%	4	₹1,556	Exit load of 1%, if redeemed within 15 days.
LIC MF Gold ETF FoF Fund	Commodities	High	33.11	0.32	55.6%	32.2%	17.9%	3	₹372	Exit load of 1%, if redeemed within 15 days.
HDFC Gold ETF Fund	Commodities	Very High	37.73	0.18	55.6%	31.8%	17.1%	3	₹6,328	Exit load of 1%, if redeemed within 15 days.
ICICI Prudential Regular Gold Savings (FOF) Fund	Commodities	High	38.55	0.09	54.9%	31.5%	17.1%	3	₹3,305	Exit load of 1% if redeemed within 15 days
Invesco India Gold ETF FoF Fund	Commodities	High	35.20	0.1	54.0%	31.2%	17.0%	3	₹278	-
Motilal Oswal Gold and Silver ETFs FoF Fund	Commodities	Very High	23.24	0.13	56.3%	31.6%	NA	2	₹834	-
Aditya Birla Sun Life Gold Fund	Commodities	Very High	36.41	0.2	56.1%	31.6%	17.4%	2	₹909	Exit load of 1%, if redeemed within 15 days.
Kotak Gold Fund	Commodities	High	48.74	0.16	54.8%	31.3%	16.9%	2	₹4,153	Exit load of 1%, if redeemed within 15 days.
DSP Gold ETF FoF Fund	Commodities	High	19.01	0.66	54.6%	NA	NA	2	₹194	-
Edelweiss Gold and Silver ETF FoF Fund	Commodities	Very High	24.14	0.23	58.5%	32.6%	NA	1	₹850	Exit load of 0.10%, if redeemed within 15 days.
Nippon India Gold Savings Fund	Commodities	Very High	48.22	0.13	55.1%	31.5%	16.8%	1	₹4,130	Exit load of 1%, if redeemed within 15 days
View All

Who Should Invest in Gold Mutual Funds?

You should invest in gold mutual funds if you want the following:

Diversification of the portfolio- In case you wish to diversify your portfolio and expand beyond conventional debt or equities, gold mutual funds are worth considering. Gold has historically been a safe haven for investors and may reduce overall portfolio risks.
Hedging against inflation- If you are worried about the effect of inflation on your portfolio, consider choosing gold funds. Gold has always been an effective hedge against inflation.
Want to invest for the long term- If you want to build wealth over a longer period, these funds may be good choices. Gold has historically ensured attractive returns over the years and may help you achieve various financial goals.
Want to leverage short-term movements- If you want to take advantage of short-term gold price movements, it can be an option worth considering. Gold prices are impacted by several factors, like geopolitical developments and global economic fluctuations. Hence, they may be somewhat volatile in the short term.

Factors to Consider Before Investing in Gold Mutual Funds

Here are some factors that you need to consider before investing in gold mutual funds:

Investment purpose- Are you investing to diversify the portfolio, hedge against inflation, or preserve capital? Determine your goals carefully before investing.
Time period- Gold can be highly effective if you invest over a medium to long-term period. Consider your ideal time horizon before finalizing your decision.
Risk appetite- While gold is relatively safer than many other assets, mutual funds may still face market risks and short-term volatility. Consider your risk appetite at the outset.
Comparisons & costs- Compare multiple funds based on their historical performance and costs (expense ratios).
Other factors- Research the expertise of the fund manager and the reliability of the investment platform. Understand the taxation of the fund and other accompanying charges.

Major Advantages While Investing in Gold Mutual Funds

Here are some of the key benefits of investing in gold mutual funds.

Portfolio diversification- You can conveniently diversify your portfolio with the help of these funds. It may help you lower risks and perform better during downturns when other assets lose their value.
Professional management- Gold mutual funds are managed by expert fund managers who make investment decisions on behalf of their customers. Hence, they consider various market conditions and other factors, along with maintaining the fund’s investment objectives.
Higher safety and liquidity- Gold has always been a safe haven for investors globally. It may offer protection in uncertain or volatile economies. At the same time, with more buyers and sellers ready to conduct transactions, liquidity levels are naturally higher for gold. These funds enable quicker redemption/withdrawals for investors.
Easily accessible- You can invest in gold mutual funds via SIPs (systematic investment plans) without having to put in a sizable amount at once.

Risks Involved While Investing in Gold Mutual Funds

Some of the risks of investing in gold mutual funds include the following:

Market risks arising from economic conditions, geopolitical developments, and supply-demand shifts.
Inflation risks may arise in the short term, since gold usually hedges against the same over a longer period. This is because the price of gold usually goes up with a reduction in currency values.
Risks arising from the chances of incorrect or biased decisions of fund managers, which may result in poor performance.
Counterparty risks are also present. Some funds investing in gold may do this via futures contracts (to buy or sell gold at a later date). These funds may face losses in case the counterparty to any such arrangement defaults or cannot deliver the gold (in case it involves physical gold).

Taxation of Gold Mutual Funds

Gold mutual funds are perceived as debt funds for taxation purposes. They are thus exempted from STT (Securities Transaction Tax). Short-term gains will be added to your taxable income and taxed as per your applicable income tax slab rate. Long-term capital gains will be taxed at 10% without indexation or 20% with indexation benefits.

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

UTI Gold ETF FoF Direct Growth

Fund Performance: The UTI Gold ETF FoF Fund comes under the Commodities category of UTI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in UTI Gold ETF FoF Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt	₹5,000
AUM	₹608Cr
1Y Returns	55.6%

SBI Gold Direct Plan Growth

Fund Performance: The SBI Gold Fund has given 31.85% annualized returns in the past three years and 17.12% in the last 5 years. The SBI Gold Fund comes under the Commodities category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Gold Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt	₹5,000
AUM	₹7,033Cr
1Y Returns	55.5%

Tata Gold ETF FoF Direct Growth

Fund Performance: The Tata Gold ETF FoF Fund comes under the Commodities category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Gold ETF FoF Fund via lump sum is ₹5,000 and via SIP is ₹150.

Min Investment Amt	₹5,000
AUM	₹478Cr
1Y Returns	53.3%

Quantum Gold Savings Fund Direct Growth

Fund Performance: The Quantum Gold Savings Fund has given 31.7% annualized returns in the past three years and 16.89% in the last 5 years. The Quantum Gold Savings Fund comes under the Commodities category of Quantum Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quantum Gold Savings Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt	₹500
AUM	₹328Cr
1Y Returns	55.3%

Axis Gold Direct Plan Growth

Fund Performance: The Axis Gold Fund has given 31.42% annualized returns in the past three years and 17.15% in the last 5 years. The Axis Gold Fund comes under the Commodities category of Axis Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Axis Gold Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt	₹100
AUM	₹1,556Cr
1Y Returns	54.8%

LIC MF Gold ETF FoF Direct Growth

Fund Performance: The LIC MF Gold ETF FoF Fund has given 32.2% annualized returns in the past three years and 17.89% in the last 5 years. The LIC MF Gold ETF FoF Fund comes under the Commodities category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Gold ETF FoF Fund via lump sum is ₹5,000 and via SIP is ₹200.

Min Investment Amt	₹5,000
AUM	₹372Cr
1Y Returns	55.6%

HDFC Gold ETF Fund of Fund Direct Plan Growth

Fund Performance: The HDFC Gold ETF Fund has given 31.77% annualized returns in the past three years and 17.06% in the last 5 years. The HDFC Gold ETF Fund comes under the Commodities category of HDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in HDFC Gold ETF Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt	₹100
AUM	₹6,328Cr
1Y Returns	55.6%

ICICI Prudential Regular Gold Savings (FOF) Direct Growth

Fund Performance: The ICICI Prudential Regular Gold Savings (FOF) Fund has given 31.49% annualized returns in the past three years and 17.11% in the last 5 years. The ICICI Prudential Regular Gold Savings (FOF) Fund comes under the Commodities category of ICICI Prudential Mutual Funds.

Min Investment Amt	₹100
AUM	₹3,305Cr
1Y Returns	54.9%

Invesco India Gold ETF FoF Direct Growth

Fund Performance: The Invesco India Gold ETF FoF Fund has given 31.22% annualized returns in the past three years and 17% in the last 5 years. The Invesco India Gold ETF FoF Fund comes under the Commodities category of Invesco Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Gold ETF FoF Fund via lump sum is ₹1,000 and via SIP is ₹500.

Min Investment Amt	₹1,000
AUM	₹278Cr
1Y Returns	54.0%

Motilal Oswal Gold and Silver ETFs FoF Direct Growth

Fund Performance: The Motilal Oswal Gold and Silver ETFs FoF Fund comes under the Commodities category of Motilal Oswal Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Gold and Silver ETFs FoF Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt	₹500
AUM	₹834Cr
1Y Returns	56.3%

Aditya Birla Sun Life Gold Fund Direct Growth

Fund Performance: The Aditya Birla Sun Life Gold Fund has given 31.62% annualized returns in the past three years and 17.44% in the last 5 years. The Aditya Birla Sun Life Gold Fund comes under the Commodities category of Aditya Birla Sun Life Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Gold Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt	₹100
AUM	₹909Cr
1Y Returns	56.1%

Kotak Gold Fund Direct Growth

Fund Performance: The Kotak Gold Fund has given 31.3% annualized returns in the past three years and 16.87% in the last 5 years. The Kotak Gold Fund comes under the Commodities category of Kotak Mahindra Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Kotak Gold Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt	₹100
AUM	₹4,153Cr
1Y Returns	54.8%

DSP Gold ETF FoF Direct Growth

Fund Performance: The DSP Gold ETF FoF Fund comes under the Commodities category of DSP Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in DSP Gold ETF FoF Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt	₹100
AUM	₹194Cr
1Y Returns	54.6%

Edelweiss Gold and Silver ETF FoF Direct Growth

Fund Performance: The Edelweiss Gold and Silver ETF FoF Fund comes under the Commodities category of Edelweiss Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Edelweiss Gold and Silver ETF FoF Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt	₹100
AUM	₹850Cr
1Y Returns	58.5%

Nippon India Gold Savings Fund Direct Growth

Fund Performance: The Nippon India Gold Savings Fund has given 31.49% annualized returns in the past three years and 16.82% in the last 5 years. The Nippon India Gold Savings Fund comes under the Commodities category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Gold Savings Fund via lump sum is ₹100 and via SIP is ₹100.