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Best Gold Mutual Funds in India for Dec 2025: DSP World Gold, SBI Gold Fund & More Based on 3Y CAGR

Written by: Nikitha DeviUpdated on: 1 Dec 2025, 7:58 pm IST
Gold mutual funds typically invest in gold bullion or in companies involved in gold mining and production, allowing investors to benefit from movements in gold price.
Gold Mutual Funds
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Gold mutual funds are investment products that let investors benefit from gold price movements without holding physical gold. These funds mainly invest in units of gold exchange-traded funds (ETFs) that mirror the domestic gold market. In this article, find the best gold mutual funds in India for Dec 2025.

Best Gold Mutual Funds in India for Dec 2025

NameAUM (₹ in crore)CAGR 3Y (%)
DSP World Gold Mining Overseas Equity Omni FoF1497.7348.69
Edelweiss Gold and Silver ETF FoF1141.7234.46
Motilal Oswal Gold and Silver ETFs FoF1101.5032.92
SBI Gold Fund8456.7832.37
Aditya Birla SL Gold Fund1041.6132.27

Note: The Gold Mutual Funds mentioned above have been selected with AUM above ₹1000 crore and sorted based on 3Y CAGR as of Dec 1, 2025.

Overview of the Best Gold Mutual Funds in India

  1. DSP World Gold FoF

DSP World Gold FoF invests in units or securities of overseas exchange-traded funds (ETFs), international funds, or domestic mutual funds that provide exposure to gold and the gold mining industry.

Key Metrics

  • Expense Ratio1.64
  • Minimum SIP: ₹100
  1. Edelweiss Gold and Silver ETF FoF

The Edelweiss Gold and Silver ETF Fund of Fund is an open-ended mutual fund that aims to deliver returns by investing in Gold and Silver ETF units. The fund maintains an equal allocation between the two metals and periodically rebalances the portfolio to preserve this balance.

Key Metrics

  • Expense Ratio0.23
  • Minimum SIP: ₹100
  1. Motilal Oswal Gold and Silver ETFsFoF

The scheme aims to generate returns by investing in units of Gold and Silver ETFs. It is an open-ended fund of funds that allocates investments in gold and silver exchange-traded funds.

Key Metrics

  • Expense Ratio0.14
  • Minimum SIP: ₹500
  1. SBI Gold Fund

SBI Gold Fund is an open-ended Fund of Fund scheme that primarily invests in the SBI-ETF Gold. Its objective is to deliver returns that mirror the performance of the SBI Gold Exchange Traded Scheme.

Key Metrics

  • Expense Ratio0.10
  • Minimum SIP: ₹500

Also ReadBest Nifty 50 Index Funds in India for Nov 2025!

Best Gold Mutual Funds in India for Dec 2025 – 5y CAGR Basis

NameAUM (₹ in crore)CAGR 5Y (%)
DSP World Gold Mining Overseas Equity Omni FoF1,497.7323.30
SBI Gold8,456.7819.73
HDFC Gold ETF FoF7,092.0919.68
Axis Gold Fund1,799.9919.67
Aditya Birla SL Gold Fund1041.6119.62

Note: The Gold Mutual Funds mentioned above have been selected with AUM above ₹1000 crore and sorted based on 5Y CAGR as of Dec 1, 2025.

Best Gold Mutual Funds in India for Dec 2025 – Absolute Returns 1Y Basis

NameAUM (₹ in crore)Absolute Returns – 1Y (%)
DSP World Gold Mining Overseas Equity Omni FoF1,497.73131.08
Edelweiss Gold and Silver ETF FoF1,141.7373.77
Motilal Oswal Gold and Silver ETFs FoF1,101.5067.87
SBI Gold8,456.7863.46
HDFC Gold ETF FoF7,092.0963.21

Note: The Gold Mutual Funds mentioned above have been selected with AUM above ₹1000 crore and sorted based on Absolute Returns 1y as of Dec 1, 2025.

Conclusion

Gold mutual funds offer a convenient and paperless way to invest in gold, but investors should consider several factors before committing. Key aspects include the fund’s expense ratio, historical performance, tracking error, and consistency of returns. Additionally, it is crucial to ensure the investment aligns with one’s financial goals, risk tolerance, and investment horizon. Evaluating these factors helps investors use gold mutual funds effectively for portfolio diversification and as a hedge against market fluctuations and inflation.

 

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.

Published on: Dec 1, 2025, 2:27 PM IST

Nikitha Devi

Nikitha is a content creator with 7+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.

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