Top 3 Performing Gold Funds

Gold has always been a favorite investment choice among Indians, driven by the nation’s love for the yellow metal and its potential to act as a hedge against inflation. In this blog, we’ll explore the top three performing gold mutual funds that offer a modern twist on gold investing. These funds invest in Gold ETFs, providing the dual benefit of avoiding the hassles of storage, safety, and liquidity issues associated with physical gold. Let’s dive into the top performers!

1. HDFC Gold Direct Plan-Growth

HDFC Gold Direct Plan-Growth is a standout mutual fund from HDFC Mutual Fund, specializing in gold and precious metals. Launched in January 2013, the fund has accumulated over Rs 2,068 crores in assets under management (AUM) as of June 2024. With a low expense ratio of 0.18%, this fund offers an efficient way to invest in gold. Over the past year, it has delivered impressive returns of 20.44%, and since inception, it has achieved an average annual return of 6.44%. The fund has doubled investors’ money every six years, making it a reliable choice for long-term wealth creation.

2. SBI Gold Fund – Direct Plan-Growth

SBI Gold Direct Plan-Growth is another top contender in the gold mutual fund space, launched on the same date as its HDFC counterpart in January 2013. With an AUM of Rs 1,879 crores and an expense ratio of just 0.1%, this fund stands out for its cost efficiency. The fund has generated returns of 20.31% over the last year and has maintained an average annual return of 6.49% since its launch. Its ability to navigate market downturns while providing consistent returns is noteworthy, doubling investors’ money approximately every six years.

3. Nippon India Gold Savings Fund Direct-Growth

Rounding out our list is the Nippon India Gold Savings Fund Direct-Growth, which also began its journey in January 2013. Managing an AUM of Rs 1,907 crores with an expense ratio of 0.14%, this fund combines cost efficiency with solid performance. Over the last year, it has delivered returns of 20.41%, with a long-term average annual return of 6.29%. Like the other funds on this list, it has the proven ability to double-invest capital every six years, making it a dependable option for gold enthusiasts.

Why Gold Mutual Funds?

Gold mutual funds offer an attractive investment alternative, blending the timeless appeal of gold with the flexibility and convenience of mutual funds. By investing in these funds, you avoid the complications of physical gold ownership while enjoying the potential for robust returns. If you’re looking to add a haven asset to your portfolio, these top-performing gold mutual funds are worth considering.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.