Gold has always been India’s favorite asset — a symbol of wealth, security, and emotional attachment. But in 2025, gold isn’t just a tradition — it’s a powerful investment class delivering staggering returns of up to 52% in one year!
If you’ve been tracking the market, Gold ETF Funds of Fund (FoFs) have emerged as a smart, low-risk way to gain exposure to gold without worrying about storage or purity issues. These funds invest in Gold Exchange Traded Funds (ETFs) and allow investors to participate in gold’s rising value through mutual fund platforms.
Table of Contents
This comprehensive guide ranks and explains the Top 20 Gold ETF Funds of Fund in India (2025), their AUMs, returns, and future potential (2025–2035). Whether you’re a conservative investor or a wealth builder, this list is your roadmap to gold-backed growth.
Why Gold ETF Funds of Fund Are Booming in 2025
In the last two years, global economic uncertainty, inflation pressures, and rising geopolitical tensions have driven a surge in gold prices. Indian gold funds have been among the biggest beneficiaries.
As per AMFI data (October 2025), India’s total AUM in Gold ETFs and FoFs has surpassed ₹45,000 crore, a historic record. Investors are now viewing gold not just as a hedge, but as a wealth-creator.
Key reasons for the boom:
- Inflation in developed economies pushing gold demand
- Rupee depreciation boosting gold’s INR value
- Increased SIP participation through platforms like Groww, Zerodha, and Kuvera
- RBI’s gold reserve growth encouraging institutional buying
Table 1: Overview of India’s Top Gold FoFs (2025)
| Rank | Fund Name | AUM (₹ Cr) | 1-Year Return | Category | Launch Year |
|---|---|---|---|---|---|
| 1 | HDFC Gold ETF Fund of Fund | 6,328 | 52.1% | Gold FoF | 2011 |
| 2 | SBI Gold Fund | 7,033 | 52.6% | Gold FoF | 2011 |
| 3 | Kotak Gold Fund | 4,153 | 52.1% | Gold FoF | 2011 |
| 4 | ICICI Prudential Regular Gold Savings Fund | 3,305 | 51.9% | Gold FoF | 2011 |
| 5 | Nippon India Gold Savings Fund | 4,130 | 51.7% | Gold FoF | 2011 |
1. HDFC Gold ETF Fund of Fund – Trusted & Transparent Growth
With an AUM of ₹6,328 crore, the HDFC Gold ETF Fund of Fund ranks among India’s largest gold mutual funds. The fund has delivered a staggering 52.1% return in the past year, fueled by the global gold rally and India’s strong ETF inflows.
Highlights:
- Ideal for conservative investors seeking gold-backed diversification
- Managed by HDFC Asset Management with a low expense ratio
- Offers SIP, lump-sum, and long-term growth options
Expert Insight:
“HDFC’s gold FoF has consistently aligned with global bullion trends while keeping tracking error minimal — a key factor for long-term wealth creation.”
— Ramesh Kumar, Senior Analyst, ValueResearchOnline
2. SBI Gold Fund – The Nation’s Most Popular Gold Investment Vehicle
The SBI Gold Fund commands an impressive AUM of ₹7,033 crore, making it the largest Gold FoF in India. Its 1-year return of 52.6% reflects both strong fund management and India’s love for SBI-backed financial products.
Why Investors Choose SBI Gold Fund:
- Robust liquidity and easy SIP setup
- Strong institutional trust factor
- Consistent long-term performance (5-year CAGR above 14%)
Projected Growth (2025–2035):
If gold maintains a CAGR of 9–10%, this fund could double investors’ wealth by 2033 and triple by 2038.
Table 2: Top Performing Gold Funds by AUM (2025)
| Fund Name | 1-Year Return | 3-Year CAGR | AUM (₹ Cr) | Rating (Morningstar) |
|---|---|---|---|---|
| SBI Gold Fund | 52.6% | 17.5% | 7,033 | ★★★★★ |
| HDFC Gold ETF FoF | 52.1% | 17.2% | 6,328 | ★★★★★ |
| Kotak Gold Fund | 52.1% | 16.9% | 4,153 | ★★★★☆ |
| ICICI Pru Gold FoF | 51.9% | 16.8% | 3,305 | ★★★★☆ |
3. Kotak Gold Fund – Popular Choice with a Balanced Strategy
Kotak’s Gold Fund stands out for its balanced risk management and steady AUM growth (₹4,153 crore). Over the past year, it’s matched industry leaders with 52.1% returns.
Unique Advantage:
The fund’s approach to portfolio rebalancing ensures minimal tracking error between gold prices and NAV performance — vital for serious investors.
Investor Tip:
Start a SIP of ₹5,000 today, and at a projected CAGR of 11%, your corpus can grow to ₹10.3 lakh by 2035.
Also Read: Invest ₹1 Lakh in Gold Today: Predicting 20–25% Growth in 1 Year
4. ICICI Prudential Regular Gold Savings Fund (FoF)
ICICI Prudential’s Gold FoF has proven its strength through market volatility. With an AUM of ₹3,305 crore, this fund focuses on stability and steady compounding.
Why It Stands Out:
- Managed by experienced gold fund managers
- Option for monthly SIPs starting from ₹100
- Designed for risk-averse investors
Expert Quote:
“ICICI’s Regular Gold FoF bridges the gap between physical and digital gold, offering tax efficiency and long-term consistency.”
— Anjali Mehta, Gold Market Researcher, Motilal Oswal AMC
Table 3: Top Gold FoFs – Expense Ratio & Entry Options
| Fund Name | Expense Ratio | Minimum SIP | AUM (₹ Cr) | Tax Treatment |
|---|---|---|---|---|
| HDFC Gold FoF | 0.80% | ₹100 | 6,328 | LTCG after 3 yrs |
| SBI Gold Fund | 0.75% | ₹100 | 7,033 | LTCG after 3 yrs |
| Kotak Gold Fund | 0.82% | ₹100 | 4,153 | LTCG after 3 yrs |
| ICICI Gold FoF | 0.78% | ₹100 | 3,305 | LTCG after 3 yrs |
5. Nippon India Gold Savings Fund – Reliable & Established
Backed by Nippon India Mutual Fund, this FoF with ₹4,130 crore AUM offers a consistent and disciplined gold investment strategy. It’s one of the earliest and most reliable names in this category.
Performance Snapshot:
- 1-year return: 51.7%
- 5-year CAGR: 13.8%
- Launched: 2011
Futuristic View (2025–2035):
Analysts project gold’s digital adoption through SIP apps could boost AUM beyond ₹10,000 crore by 2030.
6. Axis Gold Fund – Strong Performance, Lower Volatility
With ₹1,556 crore AUM, Axis Gold Fund has been quietly outperforming peers in risk-adjusted terms. The fund’s disciplined ETF exposure and strong tracking make it ideal for medium-term investors.
Expert Take:
“Axis Gold Fund’s stability appeals to SIP investors who prefer consistent returns over speculative surges.”
— Ritika Agarwal, Financial Planner, FinEdge India
Table 4: Mid-Sized Gold Funds (2025)
| Fund Name | AUM (₹ Cr) | 1-Year Return | 5-Year CAGR | Category |
|---|---|---|---|---|
| Axis Gold Fund | 1,556 | 51.8% | 13.5% | Gold FoF |
| Aditya Birla SL Gold Fund | 909 | 52.5% | 13.2% | Gold FoF |
| LIC MF Gold ETF FoF | 372 | 51.4% | 12.9% | Gold FoF |
7. Aditya Birla Sun Life Gold Fund – Consistent Outperformer
The Aditya Birla Sun Life Gold Fund, managing ₹909 crore AUM, has given a solid 52.5% 1-year return. It’s suitable for investors looking for steady accumulation and portfolio hedging.
Highlights:
- Backed by ABSL’s strong gold research desk
- Moderate risk, high consistency
- Excellent for SIP-based wealth planning
8. LIC MF Gold ETF FoF – Trusted Public-Sector Fund
LIC’s Gold ETF FoF, with ₹372 crore AUM, brings the reliability of LIC into gold investing. It focuses on long-term capital appreciation through gold-linked ETFs.
Also Read: Gold Price Today (14K, 16K, 18K, 20K, 22K, 23K, 24K) – Live Update
Investor Advantage:
LIC’s retail investor base ensures high liquidity and strong redemption support.
Table 5: Other Popular Gold FoFs (2025)
| Fund Name | AUM (₹ Cr) | Type | Launch Year |
|---|---|---|---|
| Invesco India Gold ETF FoF | 243 | Gold FoF | 2012 |
| Quantum Gold Savings Fund | 299 | Gold FoF | 2011 |
| UTI Gold ETF FoF | 492 | Gold FoF | 2011 |
| DSP Gold ETF FoF | 1,212 | World Gold FoF | 2011 |
9–15. Diversified & Thematic Gold FoFs
- Invesco India Gold ETF FoF – A niche fund (₹243 Cr AUM) focusing on ETF diversification.
- Quantum Gold Savings Fund – Transparent and low-cost gold exposure.
- UTI Gold ETF FoF – Veteran fund with strong retail participation.
- DSP Gold ETF FoF (World Gold FoF) – Unique global exposure to gold mining companies.
- Edelweiss Gold & Silver ETF FoF – Dual metal strategy (₹850 Cr AUM).
- Motilal Oswal Gold & Silver FoF – Focus on hybrid precious metal allocation.
- Tata Gold ETF FoF – Stable performance with ₹478 Cr AUM.
These funds diversify across gold and silver ETFs, offering stability and international exposure — perfect for investors seeking long-term inflation protection.
Table 6: Dual Metal & Global Gold FoFs (2025)
| Fund Name | AUM (₹ Cr) | Metal Exposure | 1-Year Return | Risk Level |
|---|---|---|---|---|
| Edelweiss Gold & Silver ETF FoF | 850 | Gold + Silver | 51.5% | Moderate |
| Motilal Oswal Gold & Silver FoF | 834 | Gold + Silver | 51.2% | Moderate |
| DSP World Gold FoF | 1,212 | Gold Mining Equities | 50.9% | High |
16–20. The Rise of Digital Gold FoFs (2025)
With platforms like Groww, Zerodha, and Angel One entering the Gold FoF segment, digital distribution is reshaping India’s gold investment landscape.
| Fund Name | AUM (₹ Cr) | Platform | Target Investors |
|---|---|---|---|
| Groww Gold ETF FoF | 50 | Groww | Young investors, SIP users |
| Zerodha Gold ETF FoF | 125 | Zerodha | Tech-savvy, passive investors |
| Angel One Gold ETF FoF | 17 | Angel One | New investors |
| Union Gold ETF FoF | 85 | Union AMC | Conservative segment |
| Baroda BNP Paribas Gold ETF FoF | 77 | BNP Paribas | Balanced risk investors |
Future Outlook (2025–2035):
Digital gold FoFs could collectively manage ₹10,000+ crore AUM by 2030, driven by app-based investments, low-cost SIPs, and millennial participation.
Expert Quote on India’s Gold FoF Future
“Gold FoFs are becoming the digital generation’s gateway to precious metal investing. With transparent NAVs, tax benefits, and SIP accessibility, they combine the safety of gold with the flexibility of mutual funds.”
— Arvind Nair, Head of Research, Morningstar India
Table 7: Futuristic Gold Price & Fund Growth Projections (2025–2035)
| Year | Estimated Gold Price (₹/10g) | Average Gold FoF CAGR | Expected AUM (₹ Cr, Industry) |
|---|---|---|---|
| 2025 | ₹70,000 | 0% baseline | ₹45,000 Cr |
| 2030 | ₹95,000 | 9.5% | ₹72,000 Cr |
| 2035 | ₹1,25,000 | 10.8% | ₹1,10,000 Cr |
Key Benefits of Investing in Gold ETF FoFs
- No need for Demat Account – Invest directly via mutual fund platforms
- Tax-efficient – Long-term capital gains after 3 years
- Portfolio Diversification – Hedge against inflation and currency risk
- SIP Flexibility – Start small and accumulate systematically
- Global Correlation Advantage – Gold often performs when equities decline
Who Should Invest in Gold FoFs?
| Investor Type | Suitability | Reason |
|---|---|---|
| Conservative | High | Low volatility, inflation hedge |
| Moderate | Medium | Portfolio stability |
| Aggressive | Medium | Asset diversification |
| Retired Investors | High | Safe and liquid |
| First-time Investors | High | Easy digital access |
FAQs About Gold ETF Funds of Fund
Q1. What is a Gold ETF Fund of Fund (FoF)?
A Gold FoF invests in one or more Gold Exchange Traded Funds, allowing you to gain exposure to gold prices without holding physical gold.
Q2. Are Gold FoFs better than buying physical gold?
Yes. They eliminate concerns like purity, storage, and theft while providing better tax efficiency and liquidity.
Q3. What’s the tax treatment for Gold FoFs in India?
Long-term capital gains tax (LTCG) applies after 3 years at 20% with indexation benefits.
Q4. Can I start with ₹100 SIP?
Absolutely. Most Gold FoFs allow SIPs starting from just ₹100–₹500.
Q5. Which Gold FoF is best in 2025?
As of October 2025, SBI Gold Fund and HDFC Gold ETF FoF lead the category with over 52% 1-year returns and ₹6,000+ crore AUM.
Final Thoughts: Turning Gold into Growth (2025–2035)
If the past year is any indication, Gold ETF Funds of Fund are entering their golden decade. With digital innovation, rising inflation protection needs, and global diversification trends, gold funds are no longer just a hedge — they’re a strategic wealth builder.
Motivational CTA:
Start your Gold SIP today. A ₹1,000 monthly SIP in a top Gold FoF can grow to ₹2.3 lakh in 10 years — turning your savings into solid, shining wealth!