In a world where markets rise and fall overnight and inflation quietly reduces the real value of money, gold continues to stand strong as a trusted store of wealth. For NRIs managing finances across borders, gold mutual funds offer a simple and transparent way to stay connected with India’s growth story while building long-term stability.
Gold has been part of every Indian portfolio for generations. However, the way people invest in it has changed. Today, gold is available in a modern, digital form that’s easy to access, track, and manage from anywhere in the world. It provides the same security and emotional value of traditional gold, without the challenges of storage or purity concerns.
As 2026 approaches, many investors are reviewing their portfolios to include assets that bring both stability and steady growth. For anyone investing for the first time, gold mutual funds are one of the most beginner-friendly ways to start your wealth journey. If you’ve been waiting for the right moment, this is the perfect time to add gold to your investment plan and let it quietly build long-term value.
Why NRIs Should Consider Gold Mutual Funds
Gold mutual funds invest in gold ETFs or physical gold and closely track the performance of the underlying metal. For NRIs, they provide an easy and compliant way to participate in India’s gold market without the complexities of holding or transporting physical gold.
- Diversification and Protection
Gold often performs well when other assets face pressure. Even a small share in your portfolio can lower risk and offer stability during uncertain times. It helps balance growth investments with long-term protection.
- Convenience and Transparency
Gold mutual funds are fully digital. You can invest, track, and redeem anytime without worrying about purity, storage, or safety. Everything is transparent and handled by professional fund managers.
- SIP-Friendly and Affordable
Many gold funds let you start SIPs from ₹100. It’s simple, flexible, and fits every investor’s budget. Regular investing also helps average out market ups and downs over time.
- Inflation Hedge
Gold often rises when inflation does. It helps preserve your buying power and adds strength to your overall wealth plan.
Pro Tip: With SB NRI, you can invest in top-performing best gold mutual funds through your NRE/ NRO account in just three easy steps.
Download the SB NRI App and start investing in the best gold mutual funds today.
Top Gold Mutual Funds to Watch in 2025
Before you choose where to invest, here are the best gold mutual funds 2025 that have stood out for their consistency, returns, and trust this year:
| Rank | Mutual Fund | 3-Year CAGR | 5-Year CAGR | Minimum SIP | Why It Stands Out |
| 1️⃣ | Edelweiss Gold and Silver ETF Fund of Fund – Growth | 36.52% | 17.34% | ₹100 | Dual exposure to gold and silver; top performer in 2025. |
| 2️⃣ | Motilal Oswal Gold and Silver ETFs Fund of Fund – Growth | 34.92% | 16.81% | ₹500 | Balanced mix of gold and silver; precise tracking performance. |
| 3️⃣ | Quantum Gold Savings Fund – Growth | 34.84% | 16.52% | ₹500 | Among the oldest gold funds with strong returns and low cost. |
| 4️⃣ | HDFC Gold ETF Fund of Fund – Growth | 34.67% | 16.38% | ₹100 | Backed by HDFC’s strong ETF structure and liquidity. |
| 5️⃣ | SBI Gold Fund – Growth | 34.52% | 16.26% | ₹500 | Ideal for long-term SIP investors seeking stability. |
| 6️⃣ | LIC MF Gold ETF Fund of Fund – Growth | 34.45% | 16.11% | ₹500 | Reliable performer supported by LIC’s credibility. |
| 7️⃣ | Nippon India Gold Savings Fund – Growth | 34.34% | 16.03% | ₹100 | Consistent track record; trusted among retail and NRI investors. |
| 8️⃣ | Kotak Gold Fund – Growth | 34.17% | 15.91% | ₹100 | Efficient ETF-based structure with steady tracking. |
| 9️⃣ | Axis Gold Fund – Growth | 34.14% | 15.83% | ₹500 | Maintains consistent performance across cycles. |
| 🔟 | Aditya Birla Sun Life Gold Fund – Growth | 34.09% | 15.77% | ₹100 | Among the top choices with over 34% 3-year CAGR. |
Invest in the best gold mutual funds in India 2025 in just three easy steps. Download the SB NRI App and start today.
How Much Should You Invest in Gold
While gold is an essential hedge, experts recommend keeping 10–15% of your overall portfolio in gold. This balance allows you to benefit from stability without compromising on equity or debt growth potential.
You can choose between lump-sum investments or SIPs depending on your comfort. SIPs help average out market volatility, while lump-sum investments are useful during dips in gold prices.
Gold vs Other Asset Classes
| Asset Class | Average Annual Return (Last 3 Years) | Volatility | Best Use Case |
| Gold | 34% | Medium | Hedge and stability |
| Equity | 17% | High | Long-term growth |
| Debt | 6–7% | Low | Income and capital safety |
Gold remains the steady anchor in your portfolio, offering balance, consistency, and resilience even when markets fluctuate.
Key Considerations Before Investing
- Investment Horizon: Hold for at least 3–5 years to see meaningful returns.
- Currency Impact: NRIs may gain or lose depending on rupee-dollar movements, so it’s best to take a long-term view.
- Taxation: Capital gains are taxed as per Indian regulations. Long-term gains (after 3 years) are taxed at 20% with indexation benefits.
Final Thoughts
Gold continues to prove its strength as a dependable and globally respected asset. For NRIs who wish to grow wealth steadily while staying connected to India’s market, gold mutual funds strike the perfect balance between tradition and technology.
As the year draws to a close, this is the right moment to take the first step. A small SIP today can turn into a strong foundation for your long-term financial goals.
Start your gold investment journey in three simple steps. Download the SB NRI App and begin growing your wealth today with the best gold mutual funds.
Frequently Asked Questions (FAQs)
1. What are the best gold mutual funds in India 2025?
Some of the best-performing gold mutual funds in 2025 include Edelweiss Gold and Silver ETF Fund of Fund, Aditya Birla Sun Life Gold Fund, Nippon India Gold Savings Fund, and Quantum Gold Savings Fund.
2. Is it good to buy gold mutual funds?
Yes. Gold mutual funds are a convenient and transparent way to invest in gold without worrying about purity, storage, or security. They track the price of gold and help diversify your portfolio while protecting it from inflation.
3. Which is better, gold mutual fund or gold ETF?
Gold ETFs are suitable for investors who prefer trading on the stock exchange, while gold mutual funds are easier for those who want a simple, SIP-based option. Both offer similar exposure to gold prices, but mutual funds are better for beginners or NRIs investing from abroad.
4. Which gold investment gives the highest return?
Over the last few years, gold mutual funds and ETFs have generated average annual returns of around 30–35%, depending on market trends and global gold prices. Long-term investors benefit the most when holding for 3–5 years or more.
5. What is the best gold ETF to invest in 2025?
Top-performing gold ETFs for 2025 include Nippon India Gold ETF, HDFC Gold ETF, and ICICI Prudential Gold ETF. These funds are known for low tracking errors, high liquidity, and strong brand credibility.
6. Is investing in gold a good idea in 2025?
Yes. With inflation concerns, currency fluctuations, and global uncertainty, gold remains a trusted hedge. It adds balance and protection to your portfolio while preserving long-term wealth.
7. What’s the best mutual fund to invest in 2025?
If you want to diversify beyond gold, funds like Parag Parikh Flexi Cap Fund, Axis Bluechip Fund, and Quant ELSS Tax Saver Fund have shown strong performance in 2025. The best choice depends on your goals and risk appetite.
8. How much should I invest in gold mutual funds?
Experts recommend allocating 10–15% of your overall portfolio to gold. It adds safety and stability while allowing your other investments to focus on growth.
9. How are gold mutual funds taxed for NRIs?
Gains are taxed under Indian capital gains rules. If held for more than 3 years, they are considered long-term and taxed at 20% with indexation. Short-term gains (less than 3 years) are added to your taxable income in India.
10. Can NRIs invest in gold mutual funds from abroad?
Absolutely. NRIs can invest online through their NRE or NRO accounts using platforms like SB NRI. The entire process is digital, paper-free, and secure.
