Gold has always been a safe and popular option among investors. Gold prices have been on the rise over the past few years, and so far this year, they have increased by almost 50%.
Gold funds are proving to be a promising option for investing in gold. Gold funds are mutual fund schemes that invest directly in gold and related assets. These funds not only reduce risk but also provide investors with the opportunity for better returns.
Over the past ten years, some niche gold funds have generated a compound annual return (CAGR) of around 15%, making them even more attractive. With low costs and strong ratings, these funds are a profitable option for investors. Leading gold funds include HDFC Mutual Fund, SBI Mutual Fund, LIC Mutual Fund, Axis Mutual Fund, and Invesco India Mutual Fund. The expense ratios in these funds range from just 0.10% to 0.32%, which reduces investment costs and ensures high returns.
SBI Gold Fund is rated 5 stars by Value Research and has a ten-year CAGR of 15.21%. Axis Gold Fund is also rated 5 stars and has a CAGR of 15.29%. HDFC Gold ETF Fund of Funds is rated 3 stars and has a CAGR of 15.21%. LIC Gold ETF Fund of Funds is rated 4 stars and has a CAGR of 14.93%. Additionally, Invesco India Gold ETF Fund of Funds is rated 3 stars and has a CAGR of 15.38%.
There are several advantages to investing in these gold funds, including eliminating the storage and theft risks associated with gold, and allowing you to invest directly with the AMC or fund house. However, it is important to consult a certified financial advisor before investing to ensure that your investment plan is in line with your risk tolerance. These five gold funds are reliable investments and have the potential to deliver good returns over the long term. But keep in mind that you must consult an expert before investing.
