Best Gold Mutual Funds in India (2026)
Gold mutual funds have gained attention as gold prices moved sharply in 2026. In Q1 2026, India’s domestic gold price rose 20% quarter-on-quarter and 81% year-on-year to an average of ₹1,51,108 per 10 grams. Gold ETF inflows also stood at ₹3,040 cr in April 2026, reflecting greater interest in gold-backed exchange-traded funds. This blog looks at gold mutual funds, their benefits, risks, taxation, and key considerations.
Top Gold Mutual Funds in India
Here is the list of the top gold mutual funds in India, sorted by their 5-year CAGR.
| Name | AUM (Rs. in cr.) | CAGR 5Y(% | CAGR 3Y(%) | Expense Ratio(%) | NAV (₹ per unit) | Exit Load(%) | Volatility(%) |
|---|---|---|---|---|---|---|---|
| LIC MF Gold ETF FoF | 253.72 | 15.49 | 29.36 | 0.32 | 30.03 | 1 | 21.85 |
| Axis Gold Fund | 1272.23 | 15.35 | 28.89 | 0.17 | 34.75 | 1 | 15.01 |
| SBI Gold | 5220.86 | 15.35 | 29.29 | 0.1 | 33.67 | 1 | 14.49 |
| Aditya Birla SL Gold Fund | 663.39 | 15.28 | 29.12 | 0.2 | 33.21 | 1 | 16.16 |
| ICICI Pru Regular Gold Savings Fund | 2602.8 | 15.28 | 29.22 | 0.09 | 35.29 | 1 | 15.07 |
| Quantum Gold Saving Fund | 244 | 15.17 | 29.31 | 0.03 | 42.16 | 0 | 14.77 |
| HDFC Gold ETF FoF | 4914.73 | 15.15 | 29.21 | 0.18 | 34.44 | 1 | 14.45 |
| Nippon India Gold Savings Fund | 3439.45 | 15.06 | 29.08 | 0.13 | 44.04 | 1 | 15.16 |
| Invesco India Gold ETF FoF | 179.56 | 15 | 28.53 | 0.1 | 32.02 | 0 | 15.7 |
| Kotak Gold Fund | 3506.12 | 14.78 | 28.91 | 0.16 | 44.5 | 1 | 14.71 |
Disclaimer: Please note that the above list of the best gold mutual funds is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.
Note: The data on the list of the best gold investment funds is from 13th May 2026. This data is derived from the Tickertape Mutual Funds Screener.
- 5Y CAGR: Sorted from Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of the Gold Mutual Funds
DSP World Gold Mining Overseas Equity Omni FoF
DSP World Gold Mining Overseas Equity Omni FoF invests in overseas funds linked to global gold mining and precious metal companies. Its performance depends on international gold prices, mining stocks, currency movement, and global commodity market conditions.
LIC MF Gold ETF FoF
LIC MF Gold ETF FoF invests primarily in units of LIC MF Gold ETF. It provides indirect exposure to domestic gold prices without requiring investors to hold physical gold directly.
Quantum Gold Saving Fund
Quantum Gold Saving Fund invests mainly in units of Quantum Gold ETF, which tracks domestic gold prices. The fund provides exposure to gold through a mutual fund structure linked to gold-backed assets.
SBI Gold Fund
SBI Gold Mutual Funds invests in SBI Gold ETF units and aims to reflect movements in domestic gold prices. It offers indirect exposure to gold without the need for physical storage or handling.
Aditya Birla SL Gold Fund
Aditya Birla SL Gold Fund invests predominantly in gold ETF units and seeks to track domestic gold price movements through a fund-of-fund investment structure.
ICICI Pru Gold ETF FOF
ICICI Pru Gold ETF FoF invests mainly in ICICI Prudential Gold ETF units. The fund provides indirect exposure to domestic gold prices through exchange-traded gold-backed investments.
HDFC Gold ETF FoF
HDFC Gold ETF FoF invests in HDFC Gold ETF units and aims to provide returns linked to domestic gold price movements through a mutual fund format.
Axis Gold Fund
Axis Gold Fund invests primarily in gold ETFs and related gold-backed instruments. Its performance depends largely on domestic gold prices and movements in bullion markets.
Nippon India Gold Savings Fund
Nippon India Gold Savings Fund invests mainly in Nippon India ETF Gold BeES units. It provides exposure to gold prices through an indirect ETF-based investment approach.
Kotak Gold Fund
Kotak Gold Fund invests primarily in Kotak Gold ETF units and seeks to provide returns linked to domestic gold price movements through a fund-of-fund structure.
What Are Gold Mutual Funds?
Gold mutual funds are investment funds that include assets associated with gold. These assets can range from physical gold, such as gold bars, to financial instruments like stocks of gold mining companies and gold exchange-traded funds (ETFs). In India, gold MF schemes often operate using a Fund of Fund (FoF) structure, where the primary investments are in other gold-related mutual funds or ETFs rather than directly holding physical gold.
Fund of Funds (FoF) Type of Gold Mutual Fund
A Fund of Funds (FoF) gold mutual fund invests in other gold-focused funds or ETFs instead of directly buying physical gold or gold stocks. This approach helps diversify investments across multiple funds. FoFs make it easier for investors to gain exposure to gold without needing a demat account. They also eliminate the need to store and secure physical gold, though management fees apply.
Tax on Gold Mutual Funds
The tax treatment of gold mutual funds depends on how long you hold the investment. Here’s a breakdown of the tax implications:
| Capital Gains Tax | New Holding Period | New Tax Rate |
| Short-Term Capital Gains (STCG) | Under 24 months | Taxed according to your income tax slab. |
| Long-Term Capital Gains (LTCG) | Over 24 months | 12.5% |
How to Invest in the Best Gold Mutual Funds in India?
You can easily start to invest in the top-performing gold mutual funds in India by following these steps:
- To invest in the gold MF schemes in India, you can visit an equity investment platform such as smallcase
- The next step is to research and identify the gold mutual fund for long-term or short-term, based on your investment thesis. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a gold fund SIP investment plan, and complete the process.
Benefits of Investing in Gold Mutual Funds
- Exposure to Gold Without Physical Holding: Gold mutual funds give exposure to gold prices without the need to buy, store, insure, or check the purity of physical gold.
- Useful During Market Uncertainty: Gold often gains attention during inflation, currency weakness, geopolitical risk, and equity market volatility. In Q1 2026, India’s domestic gold price rose 20% quarter-on-quarter and 81% year-on-year to an average of ₹1,51,108 per 10 grams.
- Portfolio Diversification: Gold usually behaves differently from equities and debt. This makes gold mutual funds relevant as a diversification tool within a broader portfolio.
- Rising Investor Participation: Gold ETFs saw inflows of ₹3,040 cr in April 2026, indicating increased interest in gold-backed financial products.
- SIP and Small-Ticket Access: Many gold mutual funds offer SIPs and low minimum investment amounts, making them more accessible than physical gold purchases.
Risks Involved While Investing in Gold Mutual Funds
- Gold Price Volatility: Gold prices can move sharply due to global rates, inflation, currency movement, central bank activity, and geopolitical events.
- No Regular Income: Gold mutual funds do not generate interest, rent, or dividends like debt instruments, real estate, or dividend-paying equities.
- Currency and Import Duty Impact: Domestic gold prices can move due to rupee weakness and import duties. In May 2026, India raised gold and silver import tariffs from 6% to 15%, affecting domestic gold prices.
- Tracking Difference: Gold mutual funds often invest in gold ETFs, so returns may differ slightly from gold prices due to expense ratios, cash holdings, and tracking differences.
- Tax Impact: Gold mutual funds are taxed in accordance with applicable mutual fund taxation rules. Tax treatment can affect post-tax returns.
Factors to Consider When Investing in Gold Mutual Funds
- Expense Ratio: Gold mutual funds have fund management costs. A lower expense ratio can reduce cost impact over longer holding periods.
- Underlying Fund Structure: Many gold mutual funds invest in gold ETFs. The quality, liquidity, and tracking efficiency of the underlying ETF can affect gold fund returns.
- Gold Price Cycle: Gold prices touched record levels in 2026, with MCX spot gold averaging ₹1,51,108 per 10 grams in Q1 2026. High entry levels can affect near-term returns.
- Portfolio Allocation: Gold mutual funds usually serve as a diversifying asset, not a substitute for equity or debt allocations.
- Investment Horizon: Gold can remain flat or volatile for long periods. The holding period should match the investor’s broader asset allocation approach.
- Taxation and Exit Load: Investors can review capital gains tax rules, exit load, and scheme documents before investing in gold mutual funds.
To Wrap It Up…
Gold mutual funds in India offer diversification and convenient access to the gold market without the need for physical storage. At the same time, they carry risks such as price volatility and global economic dependence, which can affect returns. That’s why carefully analysing these funds and consulting a financial advisor are important to determine whether they align with one’s goals and risk tolerance.
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Frequently Asked Questions(FAQs) on Gold Mutual Funds
Gold mutual funds are investment funds that primarily invest in gold and related assets, such as physical gold or stocks of companies engaged in gold mining or production. A gold mutual fund portfolio allows investors to gain exposure to gold price movements without directly owning physical gold.
The following are the best gold mutual funds in India based on 1-year returns:
– DSP World Gold Mining Overseas Equity Omni FoF
– Edelweiss Gold and Silver ETF FoF
– Motilal Oswal Gold and Silver Passive FoF
– Quantum Gold Saving Fund
– Aditya Birla SL Gold Fund
Disclaimer: The data on this list of gold mutual funds is for educational purposes only and not investment advice. Investors can also track the gold share price and NSE movements of listed companies.
Gold mutual funds are often used for diversification and exposure to gold prices without holding physical gold. Their performance depends on gold price movement, global economic conditions, inflation, currency trends, and market sentiment.
Disclaimer: Gold mutual funds are market-linked products and can be volatile. Past performance does not guarantee future gold fund returns.
Gold and fixed deposits serve different purposes. Gold is a market-linked asset whose value can fluctuate, while FDs generally offer fixed returns over a defined tenure. Their performance, risk, liquidity, and taxation vary with market conditions and product structure.
Disclaimer: Investment suitability depends on individual financial goals, risk tolerance, and investment horizon. Past performance does not guarantee future results.
There are two main types of gold mutual funds in India: Gold ETFs (Exchange-Traded Funds) and Gold Fund of Funds. Gold ETFs invest directly in physical gold and are traded on stock exchanges, while the gold fund of funds invests in gold ETFs and other gold-related assets.
Yes, you can invest in gold mutual funds through a Systematic Investment Plan (SIP). Many funds allow SIPs on a weekly, monthly, or quarterly basis. You can check the specific fund’s SIP options and timelines before starting.
The returns of gold mutual funds depend on various factors, such as gold price fluctuations and market conditions. It’s important to research gold fund investment options and consult a financial advisor to understand both the risks and benefits of investing in them.
The investment horizon can vary depending on market conditions and the future outlook for gold. It’s important to do your own research and develop a gold fund investment strategy that aligns with your financial goals and risk tolerance.
There’s no specific time to invest in gold mutual funds. Understanding the economic environment and your financial goals can help guide your investment decisions.
The choice of gold mutual funds for beginners depends on various factors, such as fund structure, market conditions, and investment goals. Beginners should research precious metals mutual funds carefully and consult a financial advisor before investing.
The best SIP in gold mutual funds depends on individual preferences and investment goals. Investors can use gold mutual fund comparison tools on platforms like Tickertape to review exit loads, NAVs, volatility, minimum SIP amounts, past performance, gold SIP returns, and other factors.
Gold mutual funds allow investment in gold ETFs or a gold index fund structure, while physical gold includes jewellery, coins, or bars. Gold mutual funds are easier to track and manage, while physical gold offers tangible ownership and emotional value.
