Gold fund
Also called Gold mutual fund, gold fund of funds
A mutual fund that invests in a gold ETF for you, so you need no demat account.
A gold fund is a mutual fund that invests in a gold ETF on your behalf. You can start a SIP without a demat account, at the cost of a slightly higher yearly fee, since it’s a fund of funds. See how it compares in gold ETF vs gold fund.
Questions people ask
What is a gold mutual fund?
A mutual fund, usually a fund of funds, that puts your money into a gold ETF. You invest like any mutual fund, at the day's NAV, with SIPs allowed and no demat account needed.
Is a gold fund costlier than a gold ETF?
Usually a little, because you pay the gold fund's own expense ratio as well as the expenses of the ETF it holds. In return you skip the demat account and brokerage.
How is a gold fund taxed?
Under the rules since the 2024 Budget changes, a gold fund of funds counts as long-term after more than 24 months, taxed at 12.5% without indexation. Shorter-term gains are taxed at your slab rate. Check incometax.gov.in for the current rules.
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