With gold continuing to play an important role as a hedge against inflation, currency volatility, and market uncertainty, Gold Mutual Funds remain a popular option for investors seeking exposure to the yellow metal without the hassles of physical storage.
Top Gold Mutual Funds Based on 5-Year CAGR
| Fund Name | AUM (₹ Cr) | 5-Year CAGR | 10-Year CAGR |
|---|---|---|---|
| SBI Gold Fund | 16,532.94 | 23.53% | 16.46% |
| LIC MF Gold ETF FoF | 824.14 | 23.71% | 15.76% |
| Quantum Gold Saving Fund | 537.67 | 23.49% | 16.31% |
| Axis Gold Fund | 3,092.33 | 23.48% | 15.91% |
| ICICI Prudential Gold ETF FoF | 6,855.77 | 23.47% | 15.88% |
Key Highlights
🥇 SBI Gold Fund
- AUM: ₹16,532.94 crore
- 5-Year CAGR: 23.53%
- 10-Year CAGR: 16.46%
- Expense Ratio: 0.25%
- 1-Year Return: 49.96%
Why it stands out: Strong long-term track record combined with one of the largest asset bases in the category.
🥈 LIC MF Gold ETF FoF
- AUM: ₹824.14 crore
- 5-Year CAGR: 23.71%
- Expense Ratio: 0.37%
- 1-Year Return: 49.50%
Why it stands out: Highest 5-year CAGR among the funds listed.
🥉 Quantum Gold Saving Fund
- AUM: ₹537.67 crore
- 5-Year CAGR: 23.49%
- Expense Ratio: 0.04%
- 1-Year Return: 50.42%
Why it stands out: Exceptionally low expense ratio, which can improve long-term returns.
Top Gold Funds by Assets Under Management (AUM)
| Fund Name | AUM (₹ Cr) |
|---|---|
| SBI Gold Fund | 16,532.94 |
| HDFC Gold ETF FoF | 12,121.18 |
| Nippon India Gold Savings Fund | 7,553.43 |
| Kotak Gold Fund | 7,064.81 |
| ICICI Prudential Gold ETF FoF | 6,855.77 |
Large AUM generally indicates higher investor confidence and better liquidity.
Best Gold Funds by 10-Year CAGR
| Fund Name | 10-Year CAGR |
|---|---|
| Kotak Gold Fund | 16.54% |
| Aditya Birla Sun Life Gold Fund | 16.49% |
| SBI Gold Fund | 16.46% |
| Invesco India Gold ETF FoF | 16.42% |
| HDFC Gold ETF FoF | 16.34% |
Who Should Invest in Gold Mutual Funds?
✅ Investors looking for portfolio diversification
✅ Those seeking a hedge against inflation and currency depreciation
✅ Investors who prefer paper gold over physical gold
✅ Long-term investors allocating 5–15% of their portfolio to gold
Points to Consider Before Investing
- Expense Ratio
- Tracking Error of the underlying Gold ETF
- Consistency of returns across market cycles
- Fund size (AUM)
- Investment horizon (preferably 3–5 years or more)
Takeaway
For June 2026, SBI Gold Fund, LIC MF Gold ETF FoF, and Quantum Gold Saving Fund emerge as strong contenders based on a combination of long-term performance, fund size, and cost efficiency. Investors should align their choice with their financial goals, risk profile, and overall asset allocation strategy.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.
