Best Gold Mutual Funds in India for August 2025: DSP World Gold, LIC MF Gold and More Based on 3Y CAGR

Gold mutual funds offer investors a practical way to gain exposure to gold prices without owning the physical metal. These funds invest primarily in gold exchange-traded funds (ETFs) or gold-related assets, making them a popular choice for portfolio diversification. 

In this article, we take a closer look at some of the best-performing gold mutual funds in India for August 2025, based on their 3-year compounded annual growth rate (CAGR), AUM, and expense ratios.

Best Gold Mutual Funds in India for August 2025

Note:The gold mutual funds above are ranked based on their 3-year CAGR as of July 24, 2025.

Overview of the Best Gold Mutual Funds in India

1. DSP World Gold FoF

DSP World Gold FoF seeks capital appreciation by investing in units/securities issued by overseas ETFs, gold-related funds, and domestic mutual funds with exposure to the gold or gold mining theme. A portion of the corpus may also be invested in money market instruments for liquidity.

Key Metrics

• 5Y CAGR: 8.34%
• 3Y Avg Annual Rolling Return: 15.65%
• NAV (Jul 23, 2025): ₹31.83

2. LIC MF Gold ETF FoF

LIC MF Gold ETF FoF is an open-ended Fund of Fund that aims to generate returns closely aligned with those of the IDBI Gold Exchange Traded Fund. It offers a convenient way for investors to access gold price movements without holding physical gold.

Key Metrics

• 5Y CAGR: 13.87%
• 3Y Avg Annual Rolling Return: 18.90%
• NAV (Jul 23, 2025): ₹26.22

3. ICICI Prudential Regular Gold Savings Fund (FOF) 

This scheme aims to generate returns by investing in units of the ICICI Prudential Gold ETF. It provides investors exposure to gold in a structured and managed manner through a Fund of Fund format.

Key Metrics

• 5Y CAGR: 13.55%
• 3Y Avg Annual Rolling Return: 18.44%
• NAV (Jul 23, 2025): ₹31.33

4. Aditya Birla Sun Life Gold Fund

Aditya Birla SL Gold Fund is designed to deliver returns that track the performance of the Birla Sun Life Gold ETF. 

Key Metrics

• 5Y CAGR: 13.47%
• 3Y Avg Annual Rolling Return: 18.67%
• NAV (Jul 23, 2025): ₹29.32

5. HDFC Gold ETF Fund of Fund

HDFC Gold ETF Fund of Fund is an open-ended scheme that seeks capital appreciation by investing in units of HDFC Gold Exchange Traded Fund.

Key Metrics

• 5Y CAGR: 13.49%
• 3Y Avg Annual Rolling Return: 18.47%
• NAV (Jul 23, 2025): ₹30.21

Read More: Silver ETFs Jump 30% as of July 2025 as Metal Hits All-Time High

Conclusion

Gold mutual funds offer a structured way to gain exposure to gold without the need to purchase or store the physical asset. By tracking the performance of gold ETFs or investing in gold-related instruments, these funds can serve as a diversification tool within a broader investment portfolio. The selection above highlights funds with a strong historical track record based on key metrics like 3Y CAGR and rolling returns, helping investors better understand their past performance.

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.

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