Five BEST Performing Gold Funds to Invest in

Last Updated : June 23, 2020, 6:32 p.m.

Gold has been one of the major assets that Indian households own. It is bought as a consumption item in the form of jewellery and investment as well. Gold mutual funds have caught the attention of many in the last some years, especially because gold as an asset class has delivered better returns than any other asset class- real estate, equity & debt in the last year. Gold funds are one of the more convenient and effective ways of buying gold.

Top Mutual Funds to Invest in Now

Five Best Performing Gold Funds

Axis Gold Fund

This fund is offered by Axis Mutual Fund , let us look at the key features of this fund:

• This fund manages an AUM of INR 116 crores.
• It was launched on 20th Oct 2011 and has delivered 4.69% annualized returns since launch.
• This fund is benchmarked against the domestic price of gold.
• The fund is rated three stars by Value Research.
• The returns are in line with the price movement of gold in India after deducting the expense ratio.

HDFC Gold Fund

This fund is offered by HDFC Mutual Fund , let us look at the key features of this fund:

• This fund manages an AUM of INR 544 crores.
• It was launched on 1st Nov 2011 and has delivered 5.18% annualized returns since launch.
• This fund is benchmarked against the domestic price of gold.
• The fund is rated three stars by Value Research.
• The returns are in line with the price movement of gold in India after deducting the expense ratio.

Kotak Gold Fund

This fund is offered by Kotak Mutual Fund , let us look at the key features of this fund:

• This fund manages an AUM of INR 453 crores.
• It was launched on 25th March 2011 and has delivered 7.78% annualized returns since launch.
• This fund is benchmarked against the domestic price of gold.
• The fund is rated three stars by Value Research.
• The returns are in line with the price movement of gold in India after deducting the expense ratio.

Nippon Gold Savings Fund

This fund is offered by Nippon mutual fund , let us look at the key features of this fund:

• This fund manages an AUM of INR 952 crores.
• It was launched on 7th March 2011 and has delivered 7.67% annualized returns since launch.
• This fund is benchmarked against the domestic price of gold.
• The fund is rated three stars by Value Research.
• The returns are in line with the price movement of gold in India after deducting the expense ratio.

SBI Gold Fund

This fund is offered by SBI mutual fund , let us look at the key features of this fund:

• This fund manages an AUM of INR 952 crores.
• It was launched on 12th Sep 2011 and has delivered 4.74% annualized returns since launch.
• This fund is benchmarked against the domestic price of gold.
• The fund is rated three stars by Value Research
• The returns are in line with the price movement of gold in India after deducting the expense ratio.

Returns of Gold Funds

The table below shows the returns of all these gold funds( regular plans)in % terms:

*These returns are as on 22nd June,2020

Conclusion

As we can see from the table, the returns are almost similar for all these funds. The slight variance is due to different launch dates and movement of gold prices from those dates. Another reason for the difference is the expense ratios that vary for all these funds. If you are planning to invest in a gold fund, you can pick one of these which has the lowest expense ratio. Since all are benchmarked against the domestic price of gold, returns will be the same excluding expense ratios. Two pertinent questions which would arise in your mind are:

Is gold a good investment during covid-19? – You can read another post of ours answering this question – https://www.wishfin.com/investment-products/is-gold-a-good-investment-during-covid/

How to invest in gold? – This post of our should help you in answering this question – https://www.wishfin.com/investment-products/how-to-invest-in-gold-paper-physical-or-both/