Gold mutual funds continue to be a preferred option for investors looking to diversify portfolios and hedge against inflation. Supported by a sustained rise in gold prices, these funds have generated strong returns over the past 5 years.
Investor interest has also been reinforced by their relatively lower volatility compared to equities. For December 2025, the following list highlights the best gold mutual funds in India for SIP investments, ranked by performance and assets under management.
| Fund Name | AUM (₹ Cr) | CAGR 5Y (%) | Absolute Returns 1Y (%) | Sharpe Ratio | Exit Load (%) |
| LIC MF Gold ETF FoF | 464.76 | 19.75 | 61.83 | 1.99 | 1 |
| SBI Gold | 8,456.78 | 19.63 | 62.63 | 2.86 | 1 |
| HDFC Gold ETF FoF | 7,092.09 | 19.60 | 62.63 | 2.87 | 1 |
| Aditya Birla SL Gold Fund | 909.45 | 19.58 | 63.10 | 2.52 | 1 |
| Axis Gold Fund | 1,799.99 | 19.55 | 61.60 | 2.56 | 1 |
Note: Data as of November 27, 2025
LIC MF Gold ETF FoF leads with a 5-year CAGR of 19.75%, while SBI Gold and HDFC Gold ETF FoF combine strong performance with high Sharpe ratios, making them attractive for SIP investors.
| Fund Name | AUM (₹ Cr) |
| SBI Gold | 8,456.78 |
| HDFC Gold ETF FoF | 7,092.09 |
| Nippon India Gold Savings Fund | 4,545.14 |
| Kotak Gold Fund | 4,539.90 |
| ICICI Pru Regular Gold Savings Fund | 3,770.12 |
Note: Data as of November 27, 2025
Choosing a SIP in gold mutual funds supports disciplined investing by enabling investors to build exposure to gold through regular, fixed contributions. This approach removes the need to time the market, which can be difficult given the volatility in gold prices.
By investing consistently over time, investors can stay aligned with long-term financial goals without reacting to short-term price movements. It also encourages a structured savings habit, making portfolio allocation to gold more systematic.
Another key advantage of SIPs in gold mutual funds is cost averaging, as regular investments help smooth out the impact of price fluctuations. Gold also plays an important role in diversification, as it typically behaves differently from equities and can help reduce overall portfolio risk during market stress.
In addition, gold is often viewed as a hedge against inflation, preserving purchasing power over the long term. Compared to physical gold, gold mutual funds offer higher liquidity, with easier redemption and no concerns around storage or purity.
Read More: India's Gold and Silver Mutual Fund Assets Cross ₹1 Lakh Crore Amid Rising Demand.
For December 2025, SBI Gold and HDFC Gold ETF FoF stand out due to their strong performance and large AUM. LIC MF Gold ETF FoF leads the category in terms of CAGR.
These funds offer investors systematic exposure to gold through SIPs. Investors should align their selection with individual risk profiles and long-term investment objectives.
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.
Published on: Nov 28, 2025, 7:20 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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