Here is a list of the best Gold Mutual Funds that we have reviewed that you can invest with.
What Are The Top 5 Gold Mutual Funds?
We have tried to make it easy for you to choose the Best Gold Mutual Fund to invest in by narrowing it down to 5 Funds.
On October 20, 2011, the gold fund was launched to generate returns that closely respond to Axis Gold ETF-generated returns. Since its launch, the moderately high-risk fund has given a 4.2% return.

Key features:
The SBI-gold fund was launched on September 12, 12, 2011, to provide returns that respond closely to SBI - ETF Gold. It is a moderately high-risk fund with a 4.1% return since its launch.

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It is a gold fund launched on March 20, 2011, with an investment objective of generating returns through investment in units of Kotak Gold Exchange Traded Fund. Since its launch, Kotak has been a moderately high-risk fund with a 6.6% return.

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The Gold Fund launched on December 5, 2011. It is a fund with a moderately high risk, and since its launch, it has given a 4% return.

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Launched on March 7, 2011, the Gold Fund's primary investment objective is to provide returns that respond closely to Reliance ETF Gold BeES. It is a moderately high-risk fund with a 6.5% return since its launch.

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Why are gold funds becoming popular?
Most people invest in Gold for various reasons. However, there are many available options for investing in Gold other than buying physical Gold. Investing in Gold Mutual Funds has become a popular option because of its clarity in every aspect.
The popularity of Gold Mutual Funds can be attributed to the following factors:
Investors do not face liquidity risks with gold mutual funds as the investment can be easily traded from the fund house. Investors using this investment option do not face the risks associated with physical Gold as the gold funds do not directly invest in physical Gold but indirectly through gold ETFs.
Top Investment Options: Gold Bullion, Silver & Mining Stocks
Most companies offer a variety of investment options for their customers.
Gold Bullion
Refers to physical Gold of high purity that is kept in coins and bars. The bullion is often held as reserves by institutional investors or the central bank and can sometimes be considered legal tender.
Pros
Cons
Silver
This is also another excellent investment option, and it involves buying physical high purity silver coins and bars.
Pros
Cons
Mining Stocks
Mining stocks as an investment option involves investing in materials as an ongoing investment and not directly in that commodity.
Pros
Cons
Gold Funds vs. Gold ETFs: Which is better?
Gold mutual funds are among the newest ways to invest in Gold as an asset. They are gold funds that invest in Gold ETFs (Exchange Traded Fund). A gold mutual fund is a variant of Gold ETFs as they are open funds traded with a gold ETF. Gold mutual funds do not directly invest in physical Gold but somewhat indirectly by investing in Gold ETFs.
Pros & Cons of Gold Funds
Mining stocks as an investment option involves investing in materials as an ongoing investment and not directly in that commodity.
Pros
Cons
On the other hand, Gold ETFs are passive investment instruments that usually invest in physical gold coins and bars and rely on gold prices.
Pros & Cons of Gold ETFs
Pros
Cons
How Gold Funds and Gold ETFs are different
We come to the conclusion that Gold ETFs are better than Gold Funds based on the above comparison. But, ultimately, the final decision will be based on your specific situation and goals.
Who Can Invest in Gold Mutual Funds?
Anyone can invest in Gold Mutual Funds, but they are suitable for not investing in stocks and those who do not have a Demat account. It is also a good option for investors who want an investment that offers high liquidity as the gold mutual funds can be sold or bought easily at the fund houses; hence no liquidity risk is involved.
How to Invest in a Gold Mutual Fund Online
Most companies make investing in gold funds more accessible, paperless, and hassle-free. You can quickly start your investment journey online by following these simple steps.
Verdict
Final Thoughts
Investing in Gold and other precious metals is an intriguing investment growing every day. However, one investment requires exclusive research to make the best-informed investment option.
With the many gold investment options available for investors, it is essential to learn about each option to select the one that suits your investment needs.
More and more investors are choosing to invest in Gold Mutual Funds, hence growing in popularity. Investing in Gold Mutual Funds is an intelligent way to take advantage of stable market prices and the value of Gold.
However, most of these investors have had challenges choosing the best fund to work with, and for this reason, we decided to review some of the existing funds and provide you with a list of top funds that you can choose to invest with.
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