Invest Smartly in Gold with These 4 Mutual Funds Offering Up to 47% SIP Returns in Just 1 Year!

As gold prices in India are at record highs, investing in gold mutual funds has become a popular way for Indian investors to gain exposure to gold without physically buying the metal. Gold funds, especially Fund of Funds (FoFs) that invest in gold ETFs, offer an easy and cost-effective option to benefit from gold price movements. In the past year, gold has delivered impressive returns, and several gold FoFs have outperformed expectations.

Here is a look at four such gold funds, compared based on their recent SIP performance, long-term returns, expenses and other key details.

1. UTI Gold ETF FoF - Direct Plan

UTI Gold Exchange-Traded Fund (ETF) Fund of Funds (FoF) has given the highest SIP return of 47.38% in the last one year. It started in October 2022 and has given a strong annualised return of 27.90% since launch. A monthly SIP of Rs 20,000 in this fund has grown to Rs 2,97,460 in just one year. The net asset value (NAV) as on April 16, 2025, was Rs 18.0055. The fund has an asset under management (AUM) of Rs 225 crore. Its expense ratio is 0.16%. The minimum SIP amount is Rs 500 and the lump sum minimum is Rs 5,000. This fund stands out for its excellent recent and overall performance.

2. Axis Gold Fund - Direct Plan

Axis Gold Fund has delivered a 47.08% annualised SIP return in the past one year. Since its launch in January 2013, it has given an 8.28% annualised return. A Rs 20,000 SIP every month would have grown to Rs 2,97,117 in one year. The NAV as of April 16, 2025, was Rs 30.3439. The fund manages assets worth Rs 944 crore. It charges an expense ratio of 0.17%. The best part is its low minimum investment requirement-just Rs 100 for SIP and lump sum both. It has a solid history and strong recent performance.

3. SBI Gold Fund - Direct Plan

SBI Gold Fund has given a 46.48% SIP return over the last one year. Since its inception in January 2013, it has given an annualised return of 8.46%, which is the best among older gold funds. A Rs 20,000 SIP would have grown to Rs 2,96,429 in one year. Its NAV was Rs 29.1767 on April 16, 2025. The fund has a large AUM of Rs 3,582 crore, showing investor trust. It also has the lowest expense ratio at 0.10%. The minimum SIP is Rs 500 and lump sum is Rs 5,000. It's a strong and reliable option for long-term investors.

4. LIC MF Gold ETF FoF - Direct Plan

LIC MF Gold ETF FoF has given a 45.8% SIP return in the past year. Since it started in January 2013, it has offered 8.10% annualised return. A Rs 20,000 monthly SIP would have grown to Rs 2,95,638 in one year. The NAV was Rs 26.0888 as on April 16, 2025. Its AUM is Rs 104 crore, the smallest among the four. The expense ratio is also the highest at 0.20%. The minimum SIP is Rs 200 and the lump sum amount is Rs 5,000. While the returns are decent, the higher cost and lower size make it slightly less attractive.

Disclaimer
The recommendations made above are not advised by either the author, nor Greynium Information Technologies. The author nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.