Best Gold Mutual Funds for May 2026 Based on 5‑Year CAGR: DSP World Gold Mining Overseas Equity, SBI Gold Fund and More

Gold mutual funds offer investors exposure to gold prices through professionally managed schemes instead of physical ownership. These funds invest either in domestic gold ETFs or overseas gold‑linked instruments, depending on their mandate.

The 5‑year CAGR helps compare how consistently these funds have captured gold price movements over a longer period. Based on available data for May 2026, the following funds are among the top performers on this metric.

Best Gold Mutual Funds Based on 5‑Year CAGR

Note: Data as on May 4, 2026

DSP World Gold Mining Overseas Equity Omni FoF

DSP World Gold Mining Overseas Equity Omni FoF invests in global gold mining companies through overseas mutual funds and ETFs. Unlike domestic gold funds, it does not hold physical gold and derives returns from mining sector equities. T

he fund’s performance depends on gold prices as well as global mining company profitability. Due to its international and sector‑specific exposure, it carries a very high risk classification.

SBI Gold Fund

SBI Gold Fund is a domestic fund of fund that invests primarily in SBI Gold ETF, which tracks physical gold prices. The scheme aims to generate returns that closely correspond to movements in gold prices in India. It offers investors exposure to gold without the need to hold or store the metal physically. The fund follows a passive structure, with returns fully linked to gold price performance.

Quantum Gold Saving Fund

Quantum Gold Saving Fund invests in units of Quantum Gold ETF, providing exposure to physical gold prices. The scheme follows a passive investment approach and does not take active calls on gold movements.

It is structured to allow both SIP and lump sum investments without requiring a demat account. The fund’s returns are directly influenced by gold price fluctuations.

ICICI Prudential Gold ETF FoF

ICICI Prudential Gold ETF FoF invests in ICICI Prudential Gold ETF to replicate domestic gold price movements. The scheme provides indirect access to physical gold through a mutual fund structure.

It operates on a passive basis, with no active asset allocation decisions. Returns from the fund are linked to changes in gold prices over time.

HDFC Gold ETF FoF

HDFC Gold ETF FoF invests primarily in units of HDFC Gold ETF, which holds gold bullion. The scheme aims to mirror gold returns in India over the long term.

It allows investors to gain gold exposure without directly investing in ETFs. The fund remains passively managed, with its performance aligned to gold price movements.

Aditya Birla Sun Life Gold Fund

Aditya Birla Sun Life Gold Fund invests mainly in Aditya Birla Sun Life Gold ETF. The ETF tracks domestic gold prices, providing indirect exposure to physical gold.

The scheme follows a passive investment strategy without active trading positions. Its returns move in line with gold price fluctuations.

Axis Gold Fund

Axis Gold Fund is a fund of fund that invests in Axis Gold ETF to provide exposure to physical gold prices. The scheme enables investments through SIPs or lump sums without the need for a trading account.

It follows a passive approach, with no attempts to outperform gold prices. Fund performance depends directly on gold market movements.

Nippon India Gold Savings Fund

Nippon India Gold Savings Fund invests in Nippon India Gold ETF, which holds physical gold. The scheme provides gold exposure through a mutual fund wrapper.

It operates with a passive mandate, keeping returns aligned with gold price movements. The fund is structured for investors seeking gold as an asset class exposure.

Kotak Gold Fund

Kotak Gold Fund invests in units of Kotak Gold ETF, offering indirect ownership of physical gold. The scheme aims to track domestic gold prices over time.

It follows a passive investment framework without active portfolio positioning. Returns from the fund reflect changes in gold prices.

LIC MF Gold ETF FoF

LIC MF Gold ETF FoF invests primarily in LIC MF Gold ETF to mirror gold price performance. The scheme offers gold exposure through a simplified mutual fund route.

It does not engage in active trading or sector allocation decisions. Returns from the fund move in line with domestic gold price trends.

Read More: RBI Brought Back 77% of Gold Reserves as Global Risk Drives Shift to Domestic Holdings.

Conclusion

Gold mutual funds covered in this list are structured to provide exposure to gold through domestic ETFs or overseas gold‑linked investments. Differences between schemes arise mainly from investment structure, geographical exposure, and cost parameters.

While overseas mining‑focused funds track equity‑driven gold themes, domestic ETF‑based funds mirror physical gold prices. As of May 2026, these schemes highlight the range of options available for investors looking to allocate to gold through mutual funds.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.