The LIC MF Gold ETF delivered a compound annual growth rate (CAGR) of 15.36%, making it the best-performing gold fund in this period. Close behind was the Invesco India Gold ETF, which returned 15.05%, followed by the UTI Gold ETF, with a 14.96% return.
Gold prices have steadily risen over the past five years, boosted by global macroeconomic uncertainties, geopolitical tensions, and persistent inflationary pressures. These conditions made gold a preferred hedge for many investors, contributing to strong inflows into gold-backed mutual funds and ETFs.
Top five gold funds/ETFs over 5 years
(Returns as of May 2025, based on Value Research data)
Fund/ETF | 5-Year CAGR | Expense Ratio | AUM (₹ crore) |
LIC MF Gold ETF | 15.36% | 0.41% | 148.89 |
Invesco India Gold ETF | 15.05% | 0.55% | 277 |
UTI Gold ETF | 14.96% | 0.48% | 1,919.00 |
Axis Gold Fund (Direct) | 14.95% | 0.17% | 1,065.00 |
Axis Gold ETF | 14.93% | 0.54% | 1,710.00 |
While ETFs dominated the top five, Axis Gold Fund (Direct) stood out as the only non-ETF in the list. Despite being an open-ended mutual fund, it delivered a return of 14.95% with an extremely low expense ratio of 0.17%, making it attractive for cost-conscious investors.
The Axis Gold ETF, meanwhile, generated 14.93%, making it the fifth-highest performer.
However, past performance should not be the sole factor in fund selection.
According to Value Research, investors should carefully examine the fund’s risk grade, liquidity, and tracking error.
First Published: Jun 18, 2025 5:49 PM IST