Gold has always been a safe and popular option among investors. Gold prices have increased in the last few years and so far this year the price of gold has increased by about 50 percent. In such a situation, gold funds are proving to be a better option to invest in gold. Gold funds are mutual fund schemes that invest directly in gold and associated assets. These funds not only reduce the risk but also give investors a chance for better returns.
In the last ten years, some specific gold funds have given an average annual return (CAGR) of around 15%, which makes these funds even more attractive. These funds with low cost and strong ratings are a profitable deal for investors. Major gold funds include – HDFC Mutual Fund, SBI Mutual Fund, LIC Mutual Fund, Axis Mutual Fund, and Invosco India Mutual Fund. The expansion ratio of these funds is only between 0.10% to 0.32%, which reduces investment costs and ensures higher profits.
SBI Gold Fund has been rated by Value Research and has a ten -year CAGR 15.21%, while Axis Gold Fund is also a rating of 5 stars and has a CAGR 15.29%. HDFC Gold ETF Fund of Fund has received a 3 star rating and its CAGR has reached 15.21%. The LIC Gold ETF Fund of Fund has a rating of 4 stars and its CAGR has been 14.93%. Also, Invesco India Gold ETF Fund of Fund of 3 Star is rated and its CAGR has been 15.38%.
These gold funds have many advantages of investing, such as no risk of gold -related storage and theft, and you can invest directly from AMC or Fund House. However, it is necessary to consult a certified financial advisor before investment so that your investment plan is according to your risk tolerance.
These five gold funds are reliable for investment and have the ability to give good returns in the long term. Look at them while planning an investment in gold.