Gold funds invest in and help protect money during market volatility.
Quantum Gold Savings Fund Direct Growth is a great option. Its Net Asset Value (NAV) is Rs. 56.29, and AUM is about Rs. 512.38 crore. The fund has booked losses of 7.60% in 1 month, but generated 10.33% profits in 3 months. Over a longer duration, it offered 64.13% in 1 year, 33.81% in 3 years, and 26.00% in 5 years.
Another strong fund is SBI Gold Fund Direct Growth. Its NAV is Rs. 44.83, and AUM is Rs. 15,700.40 crore. It delivered returns of -7.89% in 1 month, 10.25% in 3 months, 63.28% in 1 year, 33.37% in 3 years, and 25.97% in 5 years.
These funds are large and stable and follow gold prices closely. Over long periods, gold funds have booked nearly 26% to 27% annual returns in 5 years.
A SIP portfolio can include 20% to 30% allocation in such gold funds for balance and safety.