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Best gold funds to invest now

Henil Shah
/ Categories: Mutual Fund, MF Unlocked
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Best gold funds to invest now

Indians consider gold as an asset and prefer investing in it, considering it as a safe investment. This holds true in the current situation, wherein the gold surged to its all-time high of Rs 54,170 from Rs 35,940 a year back. This shows a growth of nearly 51 per cent. Looking at the performance of gold since the effects of the pandemic, it surged close to 31 per cent. Indeed, during such a crisis, people take the shelter of a safe heaven. In this article, we are going to list the down top gold fund, which you can add to your investment portfolio.

 

Top 5 Gold Funds

Gold Funds

Net Assets (Rs crore)

Expense Ratio (per cent)

Returns (per cent)

1 Year

3 Year

5 Year

Axis Gold Fund

127

0.47

44.79

21.47

13.31

Aditya Birla Sun Life Gold Fund

155

0.51

42.99

20.73

14.27

Quantum Gold Fund

101

0.97

42.06

21.14

14.61

ICICI Prudential Regular Gold Savings Fund

236

0.14

44.82

21.73

14.05

SBI Gold Fund

606

0.52

45.90

21.19

13.98

 

While investing in gold funds, basing the investment decision solely on returns can prove to be dangerous. Hence, always look for a fund with the least tracking error and lower expense ratio. Tracking error helps you to understand whether the fund is tracking its benchmark rightly or not. In this case, all the gold funds track domestic gold prices. Even avoid investing in funds with assets under management (AUM) of less than Rs 100 crore.

 

 

Further, it is prudent not to use gold for profiting, rather use it as a hedging tool to hedge against the market risks. It should not form more than 10 per cent of your investment portfolio. This will help you to have a better investment experience. This is because gold as an asset class is like Kumbhakaran, it does not move for years when it sleeps. However, when it is awake, it generates handsome returns. Therefore, to get a good investment experience, it is always better to complement it with equity and debt investments. Further, for optimal results, tactically manage your investments between equity, debt, and gold.

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