Investing in gold funds offers a convenient and efficient way to gain exposure to gold without the need to physically own the metal. These funds typically invest in gold bullion or in companies involved in gold mining and production, allowing investors to benefit from movements in gold prices. As a traditional safe-haven asset, gold is often used to hedge against inflation, currency fluctuations, and economic uncertainty.
Gold funds provide a flexible and liquid investment avenue for individuals seeking portfolio diversification and long-term value preservation. In this read, we will explore the best gold mutual funds in India for September 2025
| Name | AUM (₹ Crore) | Expense Ratio | CAGR 3Y |
| DSP World Gold FoF | 1,212.37 | 1.64 | 35.97 |
| SBI Gold Fund | 4,739.69 | 0.10 | 22.94 |
| HDFC Gold ETF FoF | 4,536.91 | 0.18 | 22.84 |
| Kotak Gold Fund | 3,301.61 | 0.16 | 22.67 |
| ICICI Pru Regular Gold Savings Fund | 2,384.06 | 0.09 | 22.64 |
Note: The Gold Mutual Funds mentioned above have been selected and sorted based on 3Y CAGR as of Aug 21, 2025
DSP World Gold FoF invests in units or securities of overseas Exchange Traded Funds (ETFs), international funds, or domestic mutual funds that offer exposure to gold or the gold mining sector.
Key Metrics
SBI Gold Fund is an open-ended Fund of Fund scheme that invests in the SBI-ETF Gold. The fund aims to generate returns that closely track those of the SBI Gold Exchange Traded Scheme.
Key Metrics
HDFC Gold ETF Fund of Fund is an open-ended scheme that invests in the HDFC Gold Exchange Traded Fund (HGETF). The fund aims to achieve capital appreciation by investing in units of HGETF.
Key Metrics
Also Read: HDFC vs Franklin Flexi Cap Fund: Comparing Returns Over 30 Years
Gold funds serve as a strategic component in a diversified investment portfolio, offering stability during market volatility and protection against inflation. While they may not provide high short-term returns, their value lies in risk mitigation and capital preservation over time.
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: Aug 21, 2025, 4:46 PM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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