Gold funds post 24% five-year returns

Business Today reported on May 24 that several India-focused gold mutual funds had delivered annualized five-year returns above 24%, as a rally in gold prices lifted both domestic gold funds and some overseas-linked products. Data cited in the report, current as of May 4, 2026, showed DSP, SBI and Quantum among the leading names in the category. The figures came as investors continued to use gold as a hedge against inflation, geopolitical risk and broader market uncertainty. The ranking also showed that not all “gold funds” take the same route to get exposure. ### Which funds were actually at the top of the five-year table? Angel One data cited by Business Today showed DSP World Gold Mining Overseas Equity Omni FoF at the top with a 26.46% five-year compound annual growth rate, followed by SBI Gold Fund at 25.06% and Quantum Gold Savings Fund at 24.97%. ICICI Prudential Gold ETF FoF and HDFC Gold ETF FoF were close behind at 24.93% and 24.90%, respectively. The same data set listed Aditya Birla Sun Life Gold Fund at 24.88%, Axis Gold Fund at 24.87%, Nippon India Gold Savings Fund at 24.73%, Kotak Gold Fund at 24.73% and LIC MF Gold ETF FoF at 24.70%. Business Today said the data was available as of May 4, 2026. (businesstoday.in) ### Why is DSP at the top if it is not a plain domestic gold fund? DSP’s top-ranked scheme is not a conventional domestic gold tracker. Business Today and Angel One both said DSP World Gold Mining Overseas Equity Omni FoF invests in international gold mining companies through overseas mutual funds and ETFs, rather than directly mirroring the price of physical gold in India. (businesstoday.in) That structure matters because the fund’s returns depend on more than bullion. Angel One said performance is also tied to mining-company profitability, global equity-market moves and sector-specific developments, which makes it different from domestic gold fund-of-funds that mainly hold units of gold ETFs. (businesstoday.in) ### What do SBI and Quantum do differently? SBI Gold Fund is a domestic fund of funds that primarily invests in SBI Gold ETF, according to Business Today and Angel One. Both described it as a passive structure designed to track domestic gold prices without requiring investors to buy or store physical metal. Business Today also said the scheme had assets under management of 14,997.68 crore rupees, making it one of the largest in the category. (angelone.in) Quantum Gold Savings Fund also uses a passive approach. Angel One said it invests in units of Quantum Gold ETF and gives investors exposure to physical gold prices without needing a demat account, allowing both SIP and lump-sum investments. (businesstoday.in) ### What drove returns above 24% over five years? Business Today said the gains were supported by rising gold prices, global economic uncertainty, inflation concerns and investor demand for safe-haven assets. The report said those factors helped gold mutual funds emerge as strong performers over the past five years. (angelone.in) The broader market backdrop was also strong for gold-linked products. The Economic Times reported in January that gold ETFs had surged in 2025 on global turmoil, geopolitical tensions and shifting interest-rate expectations, with experts pointing to continued demand from investors and central banks. (businesstoday.in) ### Are these numbers directly comparable for investors? The headline returns are comparable only up to a point because the products use different structures. DSP’s overseas mining fund carries company and equity-market exposure, while SBI, Quantum and most of the other names on the list are designed to follow gold prices more directly through ETFs and fund-of-funds structures. (economictimes.indiatimes.com) ET Money’s May 2026 screen also showed strong trailing returns across the category, though its methodology and return presentation differed from the five-year CAGR table cited by Business Today. That is a reminder that investors checking rankings should compare the same period, the same share class and the same cost assumptions before drawing conclusions. (businesstoday.in) ### Where will the next update show up? May 2026 fund rankings will continue to move with daily NAV changes and month-end disclosures. Updated assets, expense ratios and scheme details for SBI, Quantum and other fund houses will appear on fund pages and industry trackers, while fresh category comparisons are likely to be published by platforms such as AMFI-linked data services, Business Today, Angel One and ET Money in the coming weeks. (etmoney.com)