Jaipur Investment:Top Gold Mutual Funds to Invest in India 2024

博主:Admin88Admin88 11-07 28

Jaipur Investment:Top Gold Mutual Funds to Invest in India 2024

Investing in gold mutual funds offers investors a unique avenue to participate in the potential benefits of gold as an asset class, without the need for physical ownership. These funds pool investor money to invest in standard gold bullion, providing a convenient and liquid way to access the precious metal’s performance. Whether as a hedge against economic uncertainty, inflation, or simply diversifying a portfolio, gold mutual funds cater to a range of investment goals with their historical resilience and potential for capital preservation. Hence, in this article, let’s look at top gold mutual funds in India, how to invest in them, benefits, risks, and more.

To understand gold mutual funds better, you can consider reviewing the top rated gold mutual funds for investment in 2024.

Note: The data on the top 10 gold mutual funds in India list is from 28th June 2024 and the data is derived from Tickertape Mutual Fund Screener.

Filters Used:

Category: FoFs – Gold

Plan: Growth

5Y CAGR: Sorted from highest to lowest

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

SBI Gold Fund, managed by SBI Mutual Fund, was launched on 14th September 2011. This fund primarily focuses on investments in gold and related securities. It has an Assets Under Management (AUM) of Rs. 1,814.52 cr. Over the last three years, the fund has achieved a CAGR of 13.99%, and over the past five years, it has a Compound Annual Growth Rate (CAGR) of 15.47%. The expense ratio is 0.10%, with a volatility rate of 10.84%.

Managed by Kotak Mahindra Asset Management, the Kotak Gold Fund was launched on 25th March 2011. It primarily invests in gold and gold-related instruments. The fund’s AUM is Rs. 1,864.33 cr. It has a 3-yr CAGR of 13.56% and a 5-yr CAGR of 15.46%. The expense ratio is 0.16%, with a volatility rate of 10.83%.

Axis Gold Fund, managed by Axis Asset Management, was launched on 20th October 2011. The fund focuses on investments in gold and related securities. It has an AUM of Rs. 482.60 cr., a 3-yr CAGR of 13.95%, and a 5-yr CAGR of 15.43%. The fund’s expense ratio is 0.17%, and its volatility is 10.33%.

Launched on 24th October 2011, the HDFC Gold Fund is managed by HDFC Asset Management. The fund focuses on investing in gold and related instruments. It has an AUM of Rs. 2,041.53 cr. The 3-yr CAGR is 13.81%, and the 5-yr CAGR is 15.30%. The expense ratio is 0.18%, with a volatility of 10.29%.

Invesco India Gold ETF Fund of Funds is managed by Invesco Mutual Fund and was launched on 10th May 2011. This fund invests in gold and related instruments. It has an AUM of Rs. 74.10 cr., a 3-yr CAGR of 13.72%, and a 5-yr CAGR of 15.14%. The expense ratio is 0.20%, and the volatility rate is 11.91%.

The ICICI Prudential Regular Gold Savings Fund, managed by ICICI Prudential Asset Management, was launched on 20th May 2011. It focuses on gold and related investments. The fund’s AUM is Rs. 965.80 cr., with a 3-yr CAGR of 13.90% and a 5-yr CAGR of 15.10%. The expense ratio is 0.09%, and the volatility is 11.20%.

Nippon India Gold Savings Fund is managed by Nippon India Mutual Fund and was launched on 7th March 2011. It primarily invests in gold and related instruments. The fund has an AUM of Rs. 1,842.45 cr. The 3-yr CAGR is 13.63%, and the 5-yr CAGR is 15.07%. The expense ratio is 0.13%, with a volatility of 10.98%.

Quantum Gold Saving Fund, managed by Quantum Asset Management, was launched on 1st January 2013. This fund invests in gold and related instruments. It has an AUM of Rs. 116.72 cr. The fund’s 3-yr CAGR is 13.76%, and the 5-yr CAGR is 14.95%. The expense ratio is 0.06%, with a volatility rate of 10.69%.

Managed by Aditya Birla Sun Life Asset Management, the Aditya Birla Sun Life Gold Fund was launched on 15th March 2012. It focuses on investing in gold and related instruments. The fund’s AUM is Rs. 353.76 cr. The 3-yr CAGR is 13.64%, and the 5-yr CAGR is 14.94%. The expense ratio is 0.15%, and the volatility is 12.05%.

LIC MF Gold ETF Fund of Funds, managed by LIC Mutual Fund, was launched on 1st March 2011. The fund invests in gold and related instruments. It has an AUM of Rs. 53.51 cr., a 3-yr CAGR of 14.25%, and a 5-yr CAGR of 14.66%. The expense ratio is 0.26%, and the volatility rate is 11.71%.

Gold mutual funds are investment funds that include assets associated with gold. These assets can range from physical gold, such as gold bars, to financial instruments linked to gold, like stocks of gold mining companies and gold exchange-traded funds (ETFs). In India, gold mutual funds often operate using a fund of fund (FoF) structure, where the primary investments are in other gold-related mutual funds or ETFs rather than directly holding physical gold.

Investing in gold mutual funds allows investors to gain exposure to gold without the need for purchasing and storing physical gold. This can provide a hedge against inflation and diversification for an investment portfolio. The performance of gold mutual funds is directly tied to the price movements of gold in the market. Therefore, any fluctuations in gold prices will reflect in the value of these mutual funds.

A Fund of Funds (FoF) type of gold mutual fund invests in other gold-focused mutual funds or ETFs rather than directly in physical gold or gold stocks. This strategy can provide broad diversification by spreading investments across multiple funds, potentially reducing risk. Managed by professional fund managers, FoFs may benefit from expert oversight, which could enhance returns compared to individual investment strategies.

FoFs simplify the process of gaining exposure to the gold market, making them accessible to investors without demat accounts. Additionally, they can eliminate the need for storage and security costs associated with physical gold, though management fees will apply. Overall, FoFs may offer a convenient and potentially lower-risk way to invest in gold, ideal for diversifying investments and hedging against economic uncertainties.

To invest in gold mutual funds, you can follow these steps:

Step 1: You may want to open a demat and trading account with a stockbroker or through an online investment platform. For example, you can open a demat account on smallcase! This account will enable you to purchase and manage your investments seamlessly. LINK?

Step 2: Choose a gold mutual fund. To do this, you can use various resources to research and compare the best gold mutual funds in India. Tickertape Mutual Fund Screener offers over 50 filters to sort the list of mutual funds that invest in gold based on your preferred criterias. It’s advisable to conduct thorough research or consult a financial advisor to ensure you make an informed decision.

Step 3: Once you have selected a gold mutual fund, you can invest in the fund. You have the option to make a lump sum investment or opt for a Systematic Investment Plan (SIP). If you opt for SIP, then it allows you to invest small amounts at regular intervals, such as monthly or quarterly, which can help in averaging out the purchase cost over time.

After investing, it is crucial to monitor your investment regularly. This helps you ensure that your investment is performing in line with your expectations and allows you to make adjustments if necessary.

Gold mutual funds pool money from multiple investors to invest in gold-related assets. These assets can include physical gold, gold ETFs, and shares of gold mining companies. Here’s a detailed look at how gold mutual funds work:

Gold mutual funds invest in a diversified portfolio of gold-related assets such as physical gold, gold ETFs, and shares of companies involved in gold mining. This diversification may help spread the risk across different types of gold investments.

These funds are managed by professional fund managers who make investment decisions based on thorough market analysis and trends. The expertise of fund managers aims to maximise returns while managing the risks associated with gold investments.

The Net Asset Value (NAV) of a gold mutual fund is calculated at the end of each trading day. The NAV represents the current market value of the fund’s holdings divided by the number of units outstanding. This value fluctuates based on the performance of the underlying assets.

Investors can choose to invest in gold mutual funds through systematic investment plans or make lump-sum investments. This flexibility allows for a gradual build-up of investment over time, catering to different financial goals and investment strategies.

Unlike physical gold, which requires secure storage, gold mutual funds do not incur storage or security costs. They can be easily bought and sold through financial institutions or online platforms, making them accessible to a broad range of investors.

Gold mutual funds may offer a convenient way to gain exposure to gold. They provide the benefits of professional management and diversification, potentially hedging against inflation and economic uncertainties, making them a strategic addition to an investment portfolio.

Here are the features of the best gold mutual fund.

Indirect Exposure to Gold: Gold equity funds invest in gold mining and exploration companies, which gives investors indirect exposure to gold. This means that investors can benefit from rising gold prices without having to buy and store physical gold.

Leverage: Gold equity funds can provide investors with leverage, which means that they can amplify their gains if gold prices rise. However, it also means that they can amplify their losses if gold prices fall.

Liquidity: Gold equity funds are traded on the stock exchange, which can make them more liquid than physical gold. This means that investors can buy and sell their shares quickly and easily.

Professional Management: Gold equity funds are managed by professional fund managers who may have the expertise and experience to select the right stocks for the fund’s portfolio.

Gold mutual funds in India can offer several advantages that make them a good investment option.

Minimal Storage Costs: Unlike physical gold, which requires secure storage in vaults or lockers, gold fund investments can be securely stored digitally in your investment account or Demat account.

Low Cost of Acquisition: When you buy physical gold, you may typically face various charges beyond the actual cost of gold, such as making charges for jewellery, customs duty, and GST. These additional charges may not apply to gold funds.

Liquidity: Units of gold funds can be easily purchased and redeemed from the Asset Management Company (AMC) or via the stock market, potentially providing greater flexibility and liquidity.

Eliminates Purity Concerns: Gold mutual funds can mitigate this issue because the Asset Management Company (AMC) ensures the purity of the gold used as security for issuing Gold Fund units to investors. This assurance can make gold mutual funds a convenient and hassle-free option.

Gold mutual funds invest in gold-related assets like physical gold, gold ETFs, and shares of gold mining companies. Understanding how the returns on these funds are calculated involves several key factors.

The primary metric for calculating returns is the Net Asset Value (NAV), which represents the per-unit market value of the fund’s assets minus its liabilities. The NAV is calculated at the end of each trading day.

NAV = (Total Assets – Total Liabilities)​ / Total Units Outstanding

Returns are primarily derived from the change in NAV over a given period. For example, if you buy a unit at an NAV of Rs. 20 and the NAV increases to Rs. 22 after one year, the return is:

Return = [(22−20)/ 20 ]​ × 100 = 10%

The expense ratio, an annual fee charged by the fund, covers management and operational costs. It impacts the net returns. For instance, if the gross return is 8% and the expense ratio is 1%, the net return would be 7%​.

The performance of gold mutual funds is closely tied to the market value of gold. Fluctuations in gold prices directly impact the NAV and the overall returns of the fund​.Jaipur Investment

Additionally, some gold mutual funds distribute dividends and realise capital gains by selling gold-related assets at a profit. These distributions can add to the total return of the investment.

In summary, gold mutual fund returns are calculated based on the change in NAV, expense ratios, market value of gold, and any dividends or capital gains distributed.

When selecting top-rated gold mutual funds to invest in, you may want to consider the following factors:

Performance: You can look for funds with a consistent track record of outperforming their benchmark index and other gold mutual funds over the long term, preferably at least 5 years. This can give you an idea of the fund’s stability and reliability in different market conditions.

Fund Manager: Experienced and qualified fund managers can make a significant difference in the performance of a fund. You may want to research the fund manager’s background, their experience in managing gold funds, and their track record in delivering good returns.

Investment Strategy: It is important to ensure that the fund’s investment strategy aligns with your investment goals and risk tolerance. Some funds may focus on investing in physical gold, while others might invest in gold mining companies or gold ETFs. Understanding the fund’s strategy can help you decide if it fits your financial objectives.

Portfolio Concentration: Diversification within the fund’s portfolio is crucial. You may want to avoid funds that are too concentrated in a few sectors or stocks, as this increases risk. A well-diversified fund can help manage risk better by spreading investments across various gold-related assets.

By carefully evaluating these factors, you can make a more informed decision when selecting top-rated gold mutual funds to invest in.

Gold-based mutual funds can be a good investment option for a variety of investors, including:

Those who are looking to diversify their portfolio: Gold is a non-correlated asset class, which means that it may not move in line with other asset classes, such as stocks and bonds. This can help to reduce your overall risk.

Investors who are concerned about inflation: Gold can be seen as a hedge against inflation because the price of gold can rise when inflation is high.

Investors who are new to investing: Gold-based mutual funds may offer relatively simple and easy ways to invest in gold.

Risk-averse investors: These investors may often consider investing in gold mutual funds due to their perceived stability and potential as a hedge against market volatility.

Investing in gold mutual funds can offer potential benefits, but it also comes with certain risks that you should consider. Here are some of the key risks associated with gold mutual funds:

Price Volatility: The price of gold can be highly volatile, influenced by various factors such as economic conditions, geopolitical events, and currency movements. This volatility can lead to significant fluctuations in the value of your investment.

Market Risk: Gold mutual funds may be subjected to market risk. If the overall stock market or economy experiences a downturn, it can negatively impact the performance of these funds. Market conditions can affect investor sentiment, leading to changes in the price of gold and related assets.

Regulatory and Tax Changes: Changes in government regulations or tax policies can affect the performance and taxation of your gold mutual fund. It’s important to stay informed about any legislative changes that could impact your investments.

Inflation Risk: While gold is often seen as a hedge against inflation, it may not guarantee protection against all forms of economic instability or inflation. The performance of gold mutual funds can still be influenced by other economic factors that affect gold prices.

You may want to assess your investment objectives, risk tolerance, and time horizon before considering an investment in gold mutual funds. Additionally, it’s important to conduct your own research and/or consult a financial advisor before investing.

Finance Minister Nirmala Sitharaman announced changes to the holding period and long-term capital gains (LTCG) tax rate for overseas funds of funds (FoFs), gold mutual funds, and equity FoFs while leaving the short-term capital gains (STCG) tax rate unchanged. Here are the changes discussed in detail:

The gains from gold mutual funds with holding periods under 24 months are now classified as short-term capital gains. The previous holding period for STCG was under 36 months. These gains are taxed according to your income tax slab.

The gains from gold mutual funds exceeding holding periods of 24 months are now classified as long-term capital gains. Here are a few changes made to the LTCG tax rate and holding period for international mutual funds:Ahmedabad Wealth Management

Holding Period: The holding period for LTCG on international mutual funds was reduced from over 36 months to over 24 months.

Tax Rate: The long-term capital gains (LTCG) tax rate was reduced to 12.5%, previously taxed at 20%.

Prior to this change, investments in gold mutual funds held for less than three years were taxed as short-term gains at the investor’s income tax slab rate, and those held longer were taxed at 20% as long-term gains. With the new rule, investments held for over 24 months will now benefit from the reduced LTCG rate of 12.5%, while those held for less than 24 months will still be taxed as short-term gains at the slab rate.

When contemplating an investment in gold mutual funds, there are several factors that you may want to consider to ensure that your investment aligns with your financial goals and risk tolerance. Here are some factors to consider before investing in gold mutual funds.Varanasi Stock

You can start by examining the historical performance of the gold mutual fund. Look for funds that have consistently outperformed their benchmark index and other similar funds over a long period, ideally five years or more. Consistent performance may indicate a well-managed fund capable of navigating various market conditions.

Gold mutual funds can be subject to price volatility due to fluctuations in gold prices, influenced by economic conditions, geopolitical events, and currency movements. Assess your risk tolerance honestly to ensure that you are comfortable with the potential ups and downs of investing in gold. Different funds have varying levels of risk, and it is crucial to match your risk appetite with the fund’s risk profile.

The experience and track record of the fund manager play a significant role in the performance of a gold mutual fund. You might want to research the fund manager’s background, their experience in managing gold investments, and their track record in delivering good returns. A seasoned fund manager can provide a steady hand in navigating market complexities.

The expense ratio represents the annual fee charged by the fund to cover operating expenses. This fee directly impacts your net returns. While lower expense ratios are generally favorable, it is essential to weigh the ratio against the fund’s performance and the services provided. Be aware of any hidden fees that might affect your returns.

Ensure that the fund’s investment strategy aligns with your investment goals and risk tolerance. Some funds may focus on physical gold, while others might invest in gold mining companies or gold ETFs. Understanding the fund’s strategy can help you decide if it fits your financial objectives.

Consider the liquidity of the fund and any exit load fees. Gold mutual funds can be bought and sold easily through financial institutions or online platforms, offering flexibility. However, some funds may charge an exit load if you redeem your investment before a specified period. Assessing these fees is important as they can impact your overall returns.Jaipur Investment

Stay informed about any changes in government regulations or tax policies that could affect the performance and taxation of your gold mutual fund. Such changes can have a significant impact on your investment returns.

Diversification is key to managing risk. You may want to avoid funds that are too concentrated in a few sectors or stocks. A well-diversified portfolio can help mitigate the risk of poor performance from any single investment.

Gold Funds and Gold ETFs are both investment options for gaining exposure to gold, but they have some key differences. Let’s have a look at it.

Investing in gold mutual funds can offer a strategic way to diversify your portfolio and hedge against economic uncertainties. These funds provide the benefits of professional management, ease of access, and the potential for high liquidity. However, it is crucial to consider various factors before investing, such as the fund’s performance, your risk tolerance, the expertise of the fund manager, expense ratios, and the investment strategy. Additionally, staying informed about regulatory changes and understanding the tax implications can help you make more informed decisions.

As an investor to have a diversified mutual funds portfolio, you might also like to know more about these different types of funds for investing –


Surat Investment
The End

Published on:2024-11-07,Unless otherwise specified, Online financial investment | Financial investment sectorall articles are original.