These 5 gold funds and ETFs are the top performers over the last 5 years
Gold-focused mutual funds and exchange-traded funds (ETFs) have delivered decent long-term returns over the last five years. According to an analysis by Value Research, five gold funds and ETFs generated annualised returns exceeding 14.6% between May 2020 and May 2025.
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.