In Personal finance and wealth creation, it is important to diversify the investment in multiple assets. Diversify in multiple hard assets such as Real estate, Gold, stocks and mutual funds. It would minimize the risk. Gold is best investment in India and you should invest at-least 10% of your investment in gold. If you have lump-sum, you can buy physical gold and grow your wealth. Otherwise you can start SIP in gold mutual funds. Gold mutual funds provide option to invest 100 rupees in gold. In this blog, we would discuss top performing gold mutual funds in Indian mutual funds.
- SBI Gold Growth Direct Plan
- HDFC Gold Growth Direct Plan
- Nippon India Gold Saving Growth Direct Plan
- Kotak Gold Growth Direct Plan
SBI Gold Growth Direct Plan:
This fund invests in SBI Gold Exchange Traded Scheme (SBI GETS). It expense ratio is 0.12% and it provided 49% returns in last one year. You can start investment by monthly 5000 rupees in this fund. The SBI Gold Direct Plan Growth is rated Moderately High risk. Minimum SIP Investment is set to 500. Minimum Lump-sum Investment is 5000.
Advantage of this funds are lower expense ration and returns are higher than benchmark. This can be used to diversify your investment by investing in gold.
1 year returns: 49.8%
3 years return : 17.5%
HDFC Gold Growth Direct Plan:
This fund provide higher returns by investing in units of HDFC Gold Exchange Traded Fund. Expense ratio of the fund is 0.05%. You can start monthly 500 rupees by SIP in this fund. Advantage of this fund is lower expense ratio 0.05%. It provided returns better than benchmark.
1 year returns: 50.4%
3 years return : 17.18%
Expense Ratio : 0.05%
Nippon India Gold Saving Growth Direct Plan:
It provide returns that closely correspond to returns provided by Reliance Gold Exchange Traded Fund (RGETF). Nippon India Gold Saving Growth Direct fund expense ratio is 0.89%. But exit load is 1% for redemption within 15 days. Other funds collect 1% exit load within 1 year. Advantage of this fund is lower expense ratio and exit load days. It provided returns better than benchmark. This fund can be started with SIP of 100 rupees.
1 year returns: 51.25 %
3 years return : 17.13%
Exit load : 1% for redemption within 15 days
Minimum SIP : 100
Kotak Gold Growth Direct Plan:
It generates returns by investing in units of Kotak Gold ETF. Expense ratio of the fund is 0.15%. Minimum SIP for this fund is 1000 rupees. Advantage of this fund is that provided returns better than benchmark. Exit load of 2% if redeemed within 6 months and 1% if redeemed after 6 months but before 1 year.
1 year returns: 48.77%
3 years return : 16.37%
You can start 10% of your investment in gold funds as it is limited in quantity. Start investing in SIP mode in gold mutual funds. Happy investing:)