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Top rated

Axis Silver Fund of Funds

Commodity • Precious Metals • Direct Growth
3Y CAGR
40.36%
Expense ratio
0.08%
Returns vs category
N/A
Risk vs category
N/A

UTI Silver ETF Fund of Fund

Commodity • Precious Metals • Direct Growth
3Y CAGR
40.30%
Expense ratio
0.12%
Returns vs category
N/A
Risk vs category
N/A
Top rated

ICICI Prudential Silver ETF FOF

Commodity • Precious Metals • Direct Growth
3Y CAGR
40.15%
Expense ratio
0.51%
Returns vs category
N/A
Risk vs category
N/A

Kotak Silver ETF Fund of Fund

Commodity • Precious Metals • Direct Growth
3Y CAGR
40.13%
Expense ratio
0.59%
Returns vs category
N/A
Risk vs category
N/A
Top rated

HDFC Silver ETF Fund of Fund

Commodity • Precious Metals • Direct Growth
3Y CAGR
39.98%
Expense ratio
0.21%
Returns vs category
N/A
Risk vs category
N/A
Top rated

Aditya Birla Sun Life Silver ETF Fund of Fund

Commodity • Precious Metals • Direct Growth
3Y CAGR
39.95%
Expense ratio
0.27%
Returns vs category
N/A
Risk vs category
N/A
Top rated

Nippon India Silver ETF Fund of Fund (FOF)

Commodity • Precious Metals • Direct Growth
3Y CAGR
39.78%
Expense ratio
0.74%
Returns vs category
N/A
Risk vs category
N/A
Top rated

Edelweiss Gold and Silver ETF Fund of Fund

Commodity • Precious Metals • Direct Growth
3Y CAGR
36.82%
Expense ratio
0.2%
Returns vs category
High
Risk vs category
Low
Top rated

Motilal Oswal Gold and Silver Passive Fund of...

Commodity • Precious Metals • Direct Growth
3Y CAGR
33.93%
Expense ratio
0.74%
Returns vs category
High
Risk vs category
Low
Top rated

UTI Gold ETF Fund of Fund

Commodity • Precious Metals • Direct Growth
3Y CAGR
32.44%
Expense ratio
0.16%
Returns vs category
High
Risk vs category
High

About

Precious Metals Mutual Funds enable investors to gain exposure to precious metals such as gold and silver without actually owning or storing them. These funds provide an easy way for individuals to invest in precious metals and also take advantage of professional fund management.

What are Precious Metals Mutual Funds?

Precious Metals Mutual Fund Schemes makes investments in precious metals directly or indirectly through ETFs. Rather than making investments in physical gold or silver, individuals make investments in the form of buying units of mutual funds schemes invested in these precious metals.

Precious Metals Mutual Funds schemes have been designed to replicate the performance of precious metals while overcoming the problems like safety, quality, and storage.

Features of Precious Metals Mutual Funds

  • Precious Metals Exposure: You can buy precious metal-based products such as gold and silver without buying actual metal.
  • Professional Management: Skilled fund managers manage the investments ensuring they match the goals of the fund.
  • No Storage Risks: You need not worry about storage, insurance, and security of precious metals.
  • Portfolio Diversification: These funds allow for diversifying the portfolio since precious metals do well during uncertain times.

How to Invest in Precious Metals Mutual Funds?

You can invest in precious metals mutual funds by following simple process:

Step 1: Choose investment mode. You can invest through:

  • AMC websites
  • Online investment platforms provided by stockbrokers
  • Mutual fund distributors

Step 2: Choose a suitable precious metals mutual fund.

Step 3: Choose between Systematic Investment Plan (SIP) and Lump sum based on your goal and make investment.

Step 4: Make payment through UPI, netbanking or other available methods.

Why to Invest in Precious Metals Mutual Funds?

  • Inflation Hedge: Gold and other precious metals have traditionally played a role in preserving purchasing power when there is inflation.
  • Safe-Haven Investment: Precious metals are regarded as fairly safe investments when there is economic instability.
  • Convenient Investment: You can invest in precious metals without any risks such as purity, storage, and safety.
  • Wealth Diversification: Investing in precious metals will ensure that you diversify your investments.

Precious Metals Mutual Funds Taxation

Asset / Investment TypeShort-Term (STCG) Holding PeriodLong-Term (LTCG) Holding PeriodSTCG Tax RateLTCG Tax Rate
Gold / Silver Mutual Funds<br>(Fund of Funds / Unlisted)Less than 24 months24 months or moreRegular Slab Rates12.5%<br>(No Indexation)
Gold / Silver ETFs<br>(Listed on the Stock Exchange)Less than 12 months12 months or moreRegular Slab Rates12.5%<br>(No Indexation)
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Frequently Asked Questions
What are Precious Metals Mutual Funds?
These are mutual funds that invest in precious metals like gold and silver, either directly or through ETFs, allowing investors to gain exposure without owning physical metals.
Are Precious Metals Mutual Funds safe?
They eliminate the risks associated with storing physical metals, but their returns still depend on fluctuations in precious metal prices.
Can I invest through SIP?
Yes. Most Precious Metals Mutual Funds allow investments through both SIP and lump sum modes.
Who should invest in Precious Metals Mutual Funds?
They are suitable for investors looking to diversify their portfolio, hedge against inflation, or add stability during volatile market conditions.
Do these funds invest only in gold?
Not always. Depending on the scheme, they may invest in gold, silver, or a combination of precious metals through direct holdings or ETFs.