Gold has long been regarded as one of the safest and most trusted investment assets in India. With prices soaring nearly 50% this year alone, gold continues to shine as a hedge against inflation and market volatility. However, instead of purchasing physical gold, many investors are now turning to Gold Mutual Funds, which offer the same benefits with lower risk and better liquidity.
If you’re planning to invest in gold, here are five top-performing gold funds that combine low expense ratios, high ratings, and strong annual returns of nearly 15% over the past decade — making them ideal for long-term investors.
Gold Mutual Funds invest directly in gold ETFs or related assets, eliminating concerns like storage safety, purity issues, or theft risk. They also allow easy buying and selling through your bank, AMC, or mutual fund platform without needing a demat account.
Moreover, gold funds are professionally managed, ensuring that your money is diversified and less exposed to price fluctuations compared to physical gold. With long-term compounded annual growth rates (CAGR) of around 15%, these funds have outperformed several traditional investment instruments.
Rating: ★★★★★ (Value Research)
10-Year CAGR: 15.21%
Expense Ratio: Around 0.15%
SBI Gold Fund has consistently delivered superior returns and boasts a solid track record of managing risk efficiently. It remains a preferred choice for conservative investors seeking steady returns linked to gold’s performance.
Rating: ★★★★★
10-Year CAGR: 15.29%
Expense Ratio: Approx. 0.18%
Axis Gold Fund is known for its disciplined investment strategy and strong performance across market cycles. Its low cost and stability make it one of the most rewarding gold funds in India.
Rating: ★★★
10-Year CAGR: 15.21%
Expense Ratio: Around 0.25%
This fund tracks the HDFC Gold ETF and offers a balanced mix of safety and consistent growth. It is suitable for investors looking for diversification with a trusted fund house.
Rating: ★★★★
10-Year CAGR: 14.93%
Expense Ratio: Around 0.28%
Backed by LIC’s reputation, this fund offers reliability and stability. It performs well during periods of market uncertainty and serves as a solid defensive asset in any portfolio.
Rating: ★★★
10-Year CAGR: 15.38%
Expense Ratio: Approx. 0.32%
This fund stands out for its consistent returns and professional management. It’s ideal for investors seeking exposure to gold without directly purchasing physical bullion.
The expense ratios of these gold funds range between 0.10% and 0.32%, ensuring low management costs and better net returns for investors. Such funds are especially suitable for those aiming for long-term wealth creation without the volatility of equity markets.
Over the past decade, these funds have delivered an average annual return (CAGR) of around 15%, outperforming several traditional assets like fixed deposits or government bonds.
You can invest in these funds:
Directly through the official AMC website or mutual fund platform
Via SIP (Systematic Investment Plan) for regular monthly investments
Through lump-sum investment during market dips
Before investing, it’s advisable to consult a certified financial advisor to ensure the fund aligns with your risk appetite and financial goals.
For investors seeking safe, cost-effective, and high-performing options, these five gold mutual funds present a winning combination of trust, stability, and solid returns. They not only provide exposure to the rising value of gold but also help reduce the risk associated with physical holdings.
As gold continues to glitter in global markets, now might be the perfect time to diversify your portfolio with these top-rated gold funds — a smart way to build wealth while keeping your investments secure.
