Best Gold Mutual Funds in India for August 2026: Kotak Gold Fund, Axis Gold Fund, & More Based on 3Y CAGR

Gold has long been considered a reliable asset during periods of market uncertainty and inflation. For investors who want exposure to gold without the hassle of buying, storing, or insuring physical bullion, gold mutual funds offer a convenient alternative. These funds typically invest in gold ETFs or, in some cases, global gold mining companies, allowing investors to participate in the performance of the yellow metal through the mutual fund route.

If you're looking to add gold to your portfolio, here are some gold mutual fund options for investment for August 2026, ranked based on their 3-year CAGR.

Best Gold Mutual Funds in India for August 2026

Overview of the Best Gold Mutual Funds in India

1. DSP World Gold Mining Overseas EquityFoF

Managed by Jay Kothari, DSP World Gold Mining Overseas Equity FoF invests in global gold mining companies and overseas gold ETFs instead of physical gold. The fund's NAV stands at ₹50.38 and it has delivered a 5-year CAGR of around 22.6% (Direct Plan). Investors can redeem their units anytime without paying an exit load. Since it invests in mining stocks, it may be more volatile than domestic gold funds and suits aggressive, long-term investors.

2. SBI Gold Fund

Managed by Viral Chhadva, SBI Gold Fund invests in SBI Gold ETF, which tracks domestic gold prices. Its NAV is ₹32.85, while it has generated a 5-year CAGR of around 25.06%. Investors redeeming within 15 days pay a 1% exit load, while exits after that are free. The fund offers a convenient way to invest in gold without buying or storing the physical metal.

3. Quantum Gold Saving Fund

Managed by Ghazal Jain, Quantum Gold Saving Fund invests in Quantum Gold ETF to mirror domestic gold prices. The fund has a NAV of ₹31.60 and has delivered a 5-year CAGR of around 24.97%. It does not charge any exit load, allowing investors to redeem without penalty. With SIP investments and no Demat account requirement, it offers a simple way to build long-term gold exposure.

4. ICICI Prudential Gold ETFFoF

Managed by Manish Banthia and Nishit Patel, this fund invests in ICICI Prudential Gold ETF to track domestic gold prices. It has a NAV of ₹43.52 and has delivered a 5-year CAGR of around 24.93%. Investors can exit the fund without paying any exit load. It also removes the hassle of storing physical gold while allowing investments through SIPs or lump sums.

5. HDFC Gold ETFFoF

Managed by Nirman Morakhia and Arun Agarwal, HDFC Gold ETF FoF invests mainly in HDFC Gold ETF, which follows domestic gold prices. The fund's NAV is ₹30.45 and it has posted a 5-year CAGR of around 24.90%. A 1% exit load applies only if units are redeemed within 15 days. It offers an easy way to invest in gold without owning the physical metal.

6. Aditya Birla Sun Life Gold Fund

Managed by Haresh Mehta, this fund invests in Aditya Birla Sun Life Gold ETF to track domestic gold prices. Its NAV stands at ₹28.90 and it has delivered a 5-year CAGR of around 24.88%. Investors pay a 1% exit load only if they redeem within 15 days. The fund offers a convenient route to invest in gold through SIPs or lump-sum investments.

7. Axis Gold Fund

Managed by Pratik Tibrewal, Axis Gold Fund invests in Axis Gold ETF to reflect domestic gold prices. The fund has a NAV of ₹29.10 and has generated a 5-year CAGR of around 24.87%. It charges a 1% exit load for redemptions within 15 days, while later exits are free. Investors can gain gold exposure without buying physical gold or opening a Demat account.

8. Nippon India Gold Savings Fund

Managed by Himanshu Mange, Nippon India Gold Savings Fund invests in Nippon India ETF Gold BeES to track domestic gold prices. Its NAV is ₹39.80 and it has delivered a 5-year CAGR of around 24.73%. Investors redeeming within 15 days pay a 1% exit load. As one of India's largest gold funds, it provides a convenient way to invest in gold without storage concerns.

9. Kotak Gold Fund

Managed by Abhishek Bisen, Kotak Gold Fund invests in Kotak Gold ETF to mirror domestic gold prices. The fund's NAV stands at ₹30.25 and it has delivered a 5-year CAGR of around 24.73%. A 1% exit load applies for redemptions within 15 days. With a relatively low expense ratio and SIP facility, it offers a cost-effective way to build long-term exposure to gold.

10. LIC MF Gold ETFFoF

Managed by Yash Doshi, LIC MF Gold ETF FoF invests primarily in LIC MF Gold ETF, which tracks domestic gold prices. The fund has a NAV of ₹27.40 and has generated a 5-year CAGR of around 24.70%. Investors redeeming within 15 days pay a 1% exit load, while later withdrawals are free. It provides an easy way to invest in gold without buying or storing physical bullion.

Conclusion

Gold mutual funds can help diversify a portfolio and provide exposure to gold without the need for physical ownership. While past returns can offer useful insights, investors should also consider factors such as the fund's investment strategy, expense ratio, AUM, exit load, and overall suitability for their financial goals before investing. Reviewing these aspects alongside your risk appetite and investment horizon can help you make a more informed decision. 

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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.

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