Top-performing gold funds & ETFs in the last 5 years

Gold mutual funds in India have experienced a stellar performance over the last five years, largely driven by a significant rally in global gold prices. Between 2020 and 2025, the gold delivered an average annualised return of 14.6 per cent, nearly doubling investor wealth in just five years.

Some top-performing gold funds outpaced this benchmark by combining efficient tracking, low costs, and smart fund structures. In this article, we explore the best-performing gold funds (including ETFs and fund-of-funds), what drove their performance, and how investors can benefit from this asset class.

Top 5 gold ETFs and funds in the last 5 years

Note: Estimated returns are based on category averages and rankings. Actual figures may vary slightly.

A few reasons why gold prices are going up?

Gold prices are on the rise, and here are a couple of reasons that are driving the momentum:

• Geopolitical tensions: Waves of airstrikes by Israel on Iranian targets have flared up tensions in the Middle East. In uncertain times like these, investors typically flock to safe-haven assets, and gold tops that list.
  
   
• Rate cut hopes: With inflation cooling, market participants are betting that the US Federal Reserve could cut interest rates sooner than expected. That’s boosting the appeal of gold, which tends to shine when rates drop.

Our take

Gold has performed well in recent years due to multiple crises.  

While future returns may moderate, the case for a strategic gold allocation (5–10 per cent) remains strong, especially for long-term investors seeking stability and a hedge against inflation.

As our CEO Dhirendra Kumar often says, “Gold is like portfolio insurance. It pays off when most other assets don’t.”

Also read: Israel-Iran fear routs stock markets. Time to buy gold now?