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Gold as an investment has emerged as an important Asset Class in most portfolios. Historically, it has proven its ability to grow with Inflation and protect the Portfolio from Volatility caused due to a financial and economic crisis. Today, Gold Investment is available in many forms such as- physical gold, E-Gold, etc. But, Gold Funds have emerged as one of the most popular routes for gold investments due to its various advantages like liquidity, minimal investment amount, etc. So, let’s have a close look at some of the Best Gold Mutual Funds to invest in 2024.
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Fund NAV Net Assets (Cr) Rating 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) Information Ratio Sharpe Ratio HDFC Gold Fund Growth ₹23.2443
↑ 0.03 ₹2,795 ☆ 4.1 6.1 22.1 14.8 13.7 14.1 0 1.54 Kotak Gold Fund Growth ₹29.9428
↑ 0.11 ₹2,305 ☆ 4.2 6.4 22.2 14.4 13.5 13.9 0 1.52 SBI Gold Fund Growth ₹22.7357
↑ 0.08 ₹2,522 ☆☆ 4.1 6.3 22.6 15.1 13.7 14.1 0 1.55 ICICI Prudential Regular Gold Savings Fund Growth ₹24.0733
↑ 0.09 ₹1,325 ☆ 4 6.5 22.4 14.9 13.6 13.5 0 1.56 Aditya Birla Sun Life Gold Fund Growth ₹22.3868
↓ -0.28 ₹440 ☆☆☆ 3 4.9 20 14.3 13.3 14.5 0 1.53 Axis Gold Fund Growth ₹22.7084
↑ 0.03 ₹699 ☆ 3.9 6.1 22.2 15 13.8 14.7 0 1.58 IDBI Gold Fund Growth ₹20.2104
↑ 0.03 ₹71 3.8 6.1 22.2 15 13.5 14.8 0 1.58 Invesco India Gold Fund Growth ₹22.0645
↑ 0.05 ₹98 ☆☆☆ 4 6.3 22.2 14.8 13.6 14.5 0 1.6 Nippon India Gold Savings Fund Growth ₹29.7883
↑ 0.13 ₹2,237 ☆☆ 4.3 6.5 22.2 14.8 13.5 14.3 0 1.56 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Dec 24 Note: Ratio's shown as on 31 Oct 24
Fincash has employed the following parameters for shortlisting the top performing funds:
Past Returns: Return analysis of last 3 years
Parameters & Weights: Information ratio with some modifications for our ratings and rankings
Qualitative & Quantitative Analysis: Quantitative measures like Expense Ratio, Sharpe Ratio, Sortino Ratio, including fund age and the size of the fund has been considered. Qualitative analysis like the reputation of the fund along with the fund manager is one of the important parameters that you would see in the listed funds.
Asset Size: The minimum AUM criteria for gold funds are INR 100 Crores with some exceptions at times for new funds that are doing well in the Market.
Performance with Respect to Benchmark: Peer average
Some of the important tips to consider while Investing in Gold funds are:
Investment Tenure: Investors planning to invest in gold funds should stay invested for minimum 2 years.
Invest via a SIP: SIP or Systematic Investment plan is the most efficient way to invest in a Mutual Fund. They not only provide a systematic way of Investing, but also ensures regular investment growth. You can invest in a SIP with an amount as low as INR 500.