10 Best Gold Mutual Funds to Invest in 2025
Mutual funds are some of the most popular investment vehicles, pooling money from various investors to invest in a diversified portfolio of stocks, bonds, and other securities. Among these, gold mutual funds specifically focused on investing in gold-linked securities, offering a convenient way for investors to gain exposure to gold without directly purchasing physical bullion. These funds are highly regarded for their liquidity and potential tax benefits, making them an attractive option for investors looking to include gold assets in their portfolios.
The best gold mutual funds typically combine low-expense ratios with diversified portfolios. Striking a balance between minimizing risk and enhancing returns. However, as with any investment, a cautious and informed approach is crucial. This article will guide you through the essentials, including understanding a fund’s investment thesis, assessing its track record, reviewing its holdings, and weighing the expense ratio. By considering these factors, you’ll be better equipped to make smart, strategic investment decisions tailored to your financial goals.
What are Gold Mutual Funds?
Gold mutual funds are a special type of investment fund that invests in gold directly or through gold-linked securities. This special type of mutual fund focuses on gold and other related instruments, including gold coins, stocks of gold, and mining companies. They also focus on gold exchange-traded funds (ETFs).
They stand out as ideal investment vehicles as they offer a reliable and effective investing method without the cost and risk of holding physical gold. Consequently, investors focus on profiting from price movement in precious metals and they stand out because of their tax advantages, high liquidity, and low transaction costs.
Gold mutual funds’ performance depends on the fluctuations in gold prices and gold mining stocks. As gold prices fluctuate in response to various factors such as inflation, currency strength, and global market trends, gold funds also fluctuate in value.
How do gold mutual funds work?
Gold mutual funds operate by pooling money from investors to invest in various securities with exposure to gold as the primary asset. Once investors finance the fund, fund managers are tasked with making investment decisions on which gold securities to invest in based on the prevailing market trends of gold.
Therefore, fund managers may invest in physical gold, gold mining stocks, or gold ETFs and the value of the gold mutual fund would fluctuate depending on the price of gold. On the other hand, investors can buy or sell the units of the funds, given that high liquidity is always in play. The fact that the funds come with low transaction costs compared to using physical gold ensures investors have optimal returns.
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Top Gold Mutual Funds to Consider in 2024
As gold prices keep rising to record highs, investors may be interested in gaining exposure to the precious metal and profiting from the price changes through Gold mutual funds. Below is our complete list of best and low-cost gold mutual funds for diversifying an investment portfolio:
Table of Contents
- First Eagle Gold Fund (SGGDX)
- Fidelity Select Gold Portfolio Fund (FSAGX)
- Gabelli Gold Fund (GOLDX)
- Victory Capital Precious Metals and Minerals Fund (USAGX)
- Invesco Gold and Special Minerals Fund (OPGSX)
- Van Eck VIP Global Gold Fund (INIVX)
- American Century Global Gold Fund (BGEIX)
- BlackRock BGF World Gold Fund
- State Street Gold Fund (SST4481AU)
- Franklin Gold and Precious Metals A (FKRCX)
1. First Eagle Gold Fund (SGGDX)
First Eagle Gold Fund is a gold mutual fund that invests 80% of its net assets plus any borrowings in gold and other securities tied to the precious metal. Some of the fund’s biggest holdings include Wheaton Precious Metals Copra, Barrick Gold, Newmont Corporation, and Northern Star Resources.
Gold mining companies account for 82% of the fund’s portfolio, with cash at 1.34%. The non-diversified fund boasts $2.68 billion in net assets value with an expense ratio of 1.19%.
In a year where gold has gained about 29%, the gold mutual fund boasts an average return of 19%, outperforming the equity precious metals sector, which has averaged 4.69%. Additionally, the fund boasts of a five-year average return of 8.67%, above the industry average of 5.29%.
2. Fidelity Select Gold Portfolio Fund (FSAGX)
Typically, at least 80% of Fidelity Select Gold Portfolio Fund’s assets are allocated to gold-related securities, coins, and bullion consisting of gold. Through a wholly-owned subsidiary, it allocates up to 25% of its assets to gold and other precious metal investments.
The fund mostly makes investments in common stocks and some precious metals. Stocks of gold mining companies account for 98% of the fund’s holdings, including businesses involved in the prospecting, mining, refining, or trading of gold.
Some of the stocks in which the fund is heavily invested include Agnico Eagle Mines, accounting for 14% of the portfolio; Newmont Corporation, 11%; Wheaton Precious Metal, 10.70%; and Franco Nevada at 9.83%, among others.
With a 25.19% gain year to date, it is one of the best-performing gold mutual funds, considering gold is up by about 29%. Additionally, it boasts a one-year return of 27% compared to the average equity precious metals industry of 11.83%. The fund also boasts one of the lowest expense ratios of 0.70%.
3. Gabelli Gold Fund (GOLDX)
Gabelli Gold Fund is a gold mutual fund that strives to achieve long-term capital growth. Typically, the fund allocates a minimum of 80% of its net assets to equity securities of both domestic and foreign issuers that are primarily involved in gold-related activities and gold bullion.
The fund managers focus on undervalued stocks with promising growth prospects as part of their investment strategy. While gold stocks account for 100% of the fund’s holdings, they include Newmont Corporation, making up 9.34% of the portfolio, Agnico Eagle Mines Limited at 9.22%, Northern Star Resources Limited at 6.11%, and Wheaton Precious Metals Corp at 5.75%.
The advisor anticipates that a sizable amount of the fund’s assets may be invested in securities of foreign issuers, including those based in emerging markets since most of the world’s gold production occurs outside the US.
With about $351.84 million in net assets, it boasts one of the highest expense ratios at 1.55%. The gold mutual fund has outperformed the overall market, going by a 24% year-to-date gain with a one-year return of 30.99% against the industry average of 11.83%.
4. Victory Capital Precious Metals and Minerals Fund (USAGX)
Victory Capital Precious Metals and Minerals Fund is a gold mutual fund that seeks long-term capital appreciation while investing in gold directly or indirectly. The fund allocates at least 80% of its assets to equity securities of domestic and international companies which are primarily involved in the exploration, mining, or processing of gold and other precious metals and minerals like platinum, silver, and diamonds.
Consequently, gold mining stocks account for 80% of the fund’s portfolio. Some of the fund’s biggest holdings, accounting for $568.74 million in net assets value, include Agnico Eagle Mines Limited, Barrick Gold Corporation, and Newmont Corporation.
With a year-to-date gain of 24.24% agent and 295 gold price gains, the fund boasts a 1.18% expense ratio. Its one-year return stands at 31.91%, and above the Equity Precious Metals sector return of 11.83%.
5. Invesco Gold and Special Minerals Fund (OPGSX)
Invesco Gold and Special Minerals Fund is a gold mutual fund that invests in stocks of companies engaged in the mining, processing, or trading of gold or other metals or minerals. It also invests in gold bullion, other physical metals, and exchange-traded funds (ETFs), focusing on precious metals.
In normal market conditions, these securities, along with derivatives and other instruments with similar economic characteristics, will account for at least 80% of the fund’s net assets, plus any borrowings, for investment purposes.
The fund is up by 19.97% for the year compared to a 29% gain in the price of gold. Its one-year return stands at 22.83%, above the 11.83% of the Equity Precious Metals sector return at the back of an expense ratio of 1.10%. Some stocks that have contributed to the impressive return include Agnico Eagle Mines, Northern Star Resources, Barrick, Ivanhoe Mines, and Newmont.
6. Van Eck VIP Global Gold Fund (INIVX)
Van Eck VIP Global Gold Fund is a gold mutual fund whose investment strategy focuses on long-term capital appreciation while investing in gold securities. Under normal circumstances, the fund allocates at least 80% of its net assets to securities of companies specializing in activities related to gold, as well as gold-denominated securities and bullion.
It allocates at least 25% of its assets to the gold-mining sector. With a net asset base of $63.19 million, the gold fund is heavily invested in Agnico Eagle Mines Limited, Alamos Gold Inc., and Newmont Corporation Kinross Gold Corporation, among other gold mining companies.
While the fund is up by about 20.74% for the year with a 27.96% one-year return, it boasts a 1.43% expense ratio.
7. American Century Global Gold Fund (BGEIX)
American Century Global Gold Fund is a gold mutual fund that tries to achieve capital growth while rewarding investors with dividends. Its portfolio includes stocks of companies engaged in the mining, processing, and distributing of gold or other precious metals worldwide.
Given that the gold fund invests at least 80% of its funds in gold mining companies, some of its biggest holdings include Agnico Eagle Mines Limited, Kinross Gold Corporation, Wheaton Precious Metals Corp., and Newmont Corporation.
With about $700 million in net assets under management, it is one of the largest gold mutual funds with a low expense ratio of 0.66%. Additionally, it is up by 24.79%, slightly below the 29% gain in gold prices. Nevertheless, the fund boasts of a 35.54% one-year return.
8. BlackRock BGF World Gold Fund
State Street Gold Fund is a gold mutual fund that seeks to provide a liquid and cost-effective means of gaining exposure to the gold market. It aims to provide investors with the performance of the spot price of gold in Australian Dollars before management costs.
The fund also offers potential diversification benefits within a multi-asset portfolio, with its underlying gold holdings backed by allocated physical gold stored in secure vaults in London, New York, and Zurich.
With a net asset value of AUD 1.0914 billion, it boasts 0.14% in management costs.
10. Franklin Gold and Precious Metals A (FKRCX)
Franklin Gold and Precious Metals is a gold mutual fund that invests at least 80% of its net assets in gold and other precious metals. Its principal investment objective is capital appreciation, and its secondary objective is income.
It may buy securities of gold and precious metals operation companies located anywhere in the world and generally invests predominantly in non-U.S. companies. Some of the fund’s biggest holdings for gold include Agnico Eagle Mines Limited, Newmont Corporation, and Alamos Gold Inc. among others.
With a net asset value of about $1.11 billion Franklin Gold and Precious Metals comes with an expense ratio of about 0.92%. Its year-to-date return stands at 33.39% better than the 20% gain for the S&P 500. It also boasts a 53.68% 1-year return.
Local South African Asset Managers with Strong Gold Holdings
Several well-known asset management companies in South Africa hold strong investments in gold and gold mining companies. Allan Gray, Truffle, M&G, Coronation, Ninety One, Fair Tree, and 36One Asset Management are some of the leading asset managers, including the Public Investment Corporation (PIC), that have diversified their investment portfolio with stakes in physical gold, gold mining companies, and exchange-traded funds.
How to Invest in Gold Mutual Funds
Investing in gold mutual funds is one of the best ways of gaining exposure to gold without holding the precious metal. Investing is as simple as acquiring a company stock through a brokerage firm or other financial institution selling gold ETFs or mutual funds.
By opening an account in a brokerage firm, one can gain access to various gold mutual funds and invest in them by simply buying or depositing money into the brokerage account. Beginner investors may find these funds to be a good investment because of their lower cost and relative risk. The expense ratio is less than 0.5%, which is less expensive than what you might pay for a mutual fund.
Before investing in a gold mutual fund, one should:
- Research and selection: Conduct due diligence on the mutual fund must be conducted to understand its investment thesis and expense ratio. Additionally, one should pay attention to the average return over the years.
- Assess goals and risk: It is essential to assess a mutual fund’s investment goals and the investment risks associated with it.
- Choose a provider and diversify: It’s vital to focus on a mutual fund with a diversified portfolio in old securities.
- Monitor and seek advice: Before investing, it is crucial to, first, monitor a given mutual fund to understand its performance while also seeking professional help.
What Are the Opportunities and Risks of Investing in Gold Mutual Funds?
Gold mutual funds come with a fair share of opportunities and risks that make them stand out as investment securities:
Opportunities:
- Highly liquid: they are highly liquid and thus can be sold and bought on short notice.
- Safe Investment option: Gold mutual funds are highly regulated and thus highly secure
- Diversify investment portfolio: Ideal for diversifying investment portfolio as they invest in an array of companies and other gold securities.
- Professional management: These funds are managed by professional managers who make investment decisions.
Risks
- Highly Volatile: They can be extremely volatile as their performance is tied to gold prices.
- Expense Ratios: Most come with management fees and expense ratios that can eat into returns
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Final Thoughts on Top Gold Mutual Funds for Investment in 2025
Over the past 500 years, gold has been one of the most valuable asset classes. It has long been regarded as a resource that can protect against economic risks like recession and inflation. Gold mutual funds are important investment schemes that allow investors to gain exposure to the precious metal.
Gold mutual funds stand out partly because of their tax benefits, as they are eligible for long-term capital gains tax. They also stand out because they’re highly liquid, allowing investors to buy and sell them quickly. The low cost of transactions also ensures that investors will receive optimum returns.
Additionally, they are excellent for reducing investment risk and diversifying portfolios. Since they are highly regulated, the risk of investing and holding the securities is minimized. Because they are immune to changes in the financial markets, gold funds are generally steady and appealing to conservative investors.
Frequently Asked Questions
How to choose the best gold mutual fund for your portfolio?
Begin by examining the gold mutual fund’s past performance, the skill level of its management group, and the cost of managing the fund. Also, think about the fund’s basic holdings, like actual gold or shares in gold mining companies, and how these match your comfort with risk and investment objectives for making a knowledgeable choice.
What risks are involved when investing in gold mutual funds?
Like most mutual funds, gold mutual funds, are susceptible to various risks, including management risk, as managers can make costly investment decisions. Variables, including economic conditions, geopolitical developments, and shifts in supply and demand, affect gold funds’ performance.
How to invest in gold mutual funds?
The process of investing gold funds starts with carrying out an in-depth analysis of various gold mutual funds, opening a brokerage account, depositing money, and then buying the fund as traded in the market
How do old mutual funds work?
Gold mutual funds work by pooling funds from investors to invest in physical gold, gold mining companies and stocks.