Table of Contents
- What is SIP in Gold Mutual Funds?
- Best Gold Mutual Funds in India – 2025
- Overview of the Best Gold Mutual Funds in India
- Why Invest in Gold Mutual Funds?
- Key Limitations of Gold Mutual Funds
- How to Start SIP in Gold – Step-by-Step
- FAQs
- Disclaimer
If you want to invest in gold without buying physical jewellery or coins, SIP in Gold Mutual Funds is one of the smartest ways to go. It’s safe, simple, and helps you benefit from gold price growth without worrying about storage or purity issues.
1) What is SIP in Gold Mutual Funds?
SIP (Systematic Investment Plan) in gold mutual funds allows you to invest a fixed amount regularly—monthly, quarterly, etc.—into a gold mutual fund. These funds invest mainly in gold ETFs (Exchange Traded Funds), which track the market price of gold.
Example: If you invest ₹2,000 every month in a gold SIP, you buy gold in small quantities at different prices. Over time, this helps you average out the cost and reduce the impact of price fluctuations.
2) Best Gold Mutual Funds in India – 2025
Returns are indicative and vary with gold prices. Check the latest factsheet before investing.
| Fund Name | 1-Year Return | 5-Year CAGR | Expense Ratio |
|---|---|---|---|
| Nippon India Gold Savings Fund | ~16% | ~11% | 0.50% |
| SBI Gold Fund | ~15.8% | ~10.8% | 0.55% |
| HDFC Gold Fund | ~15.5% | ~10.6% | 0.50% |
| ICICI Prudential Regular Gold Savings Fund | ~15.4% | ~10.7% | 0.55% |
| Aditya Birla Sun Life Gold Fund | ~15.2% | ~10.5% | 0.50% |
Note: Returns are indicative and change based on gold prices. Always check the latest data before investing.
3) Overview of the Best Gold Mutual Funds in India
- Nippon India Gold Savings Fund – Consistently among top performers, strong track record, low expense ratio.
- SBI Gold Fund – Backed by SBI’s gold ETF, ideal for long-term wealth preservation.
- HDFC Gold Fund – Trusted AMC, strong gold ETF backing, and stable returns.
- ICICI Prudential Regular Gold Savings Fund – Flexible investment options, good liquidity.
- Aditya Birla Sun Life Gold Fund – Balanced expense ratio with decent long-term growth.
4) Why Invest in Gold Mutual Funds?
- Hedge Against Inflation: Gold prices often rise when inflation is high.
- Safe-Haven Asset: Tends to do well during market stress or geopolitical uncertainty.
- No Storage Hassles: No worries about theft, purity, or making charges.
- Low Entry Barrier: Start SIPs from as low as ₹500–₹1,000.
- Liquidity: Easy redemption compared to physical gold.
5) Key Limitations of Gold Mutual Funds
- No Dividend/Interest: Gold is a non-yielding asset; gains come from price movement.
- Price Volatility: Short-term fluctuations may impact returns.
- Expense Ratio: Even small costs reduce final gains.
- Not Equity-like Growth: Better for stability than aggressive wealth creation.
6) How to Start SIP in Gold Mutual Funds – Step-by-Step
- Choose a Gold Mutual Fund: Compare returns, expense ratios, and AMC reputation.
- Select SIP Amount & Frequency: Start with a comfortable amount (₹500–₹2,000).
- Open an Online Account: Via broker, AMC website, or mutual fund app.
- Complete KYC: PAN, Aadhaar, and bank details required.
- Set Up Auto-Debit: Enable automated monthly investments.
💡 Pro Tip: Invest for at least 5–7 years to benefit from rupee-cost averaging and gold’s long-term stability.
| Step | Action |
|---|---|
| 1 | Log in via Angel Bee app or website |
| 2 | Navigate to Mutual Funds > Discover funds |
| 3 | Select fund and click Invest |
| 4 | Choose SIP, enter amount/date, select payment method |
| 5 | Optionally make first payment immediately |
| 6 | Click Start SIP to confirm |
| 7 | (Optional) Use 1-Click SIP with Autopay for automatic setup |
| 8 | Track SIPs via SIP Portfolio and SIP Health tools |
Frequently Asked Questions
What is a SIP in Gold Mutual Funds?
A SIP lets you invest a fixed amount at regular intervals into a gold mutual fund that invests in gold ETFs tracking domestic gold prices.
How much do I need to start?
Many AMCs allow starting from ₹500–₹1,000 per month. You can increase later as your income grows.
Is a demat account required?
No demat is required for gold mutual funds. You’ll need KYC and a bank account. (Gold ETFs, however, typically require a demat for direct ETF purchases.)
What are the tax rules?
Taxation can change. Generally, capital gains apply on redemption based on holding period and prevailing tax law. Please check the latest rules or consult a tax advisor.
Gold Fund vs. Gold ETF — which is better?
Gold ETFs have lower expense ratios but need a demat account and a broker. Gold funds invest in those ETFs and are easier for beginners. Choose based on convenience and cost.
Disclaimer
Information provided is for educational purposes only and is not investment, tax, or legal advice. Past performance is not indicative of future results. Returns and expense ratios shown are indicative and subject to change. Always read the scheme information document (SID) and consult a qualified advisor before investing.
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