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  1. This gold fund doubled investors' money in one year, grew faster than gold; 3 key things to know

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This gold fund doubled investors' money in one year, grew faster than gold; 3 key things to know

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4 min read | Updated on October 16, 2025, 17:03 IST

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SUMMARY

Gold prices have stayed in the upper range after breaking out of consolidation in August. The sharp and relentless rally has attracted investors back towards gold. Some prefer to participate through ETFs, some through physical and others via mutual funds. While ETFs and physical gold have mirrored the gold price rise. The DSPWorld Gold Mining Overseas Equity Omni FoF has outperformed the returns of gold and equities in 2025.

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The DSP World Gold Mining Overseas Equity Omni FoF delivered 106% returns in one year outperforming the gold price rise by huge margin. Image source: Shutterstock.

Gold continues to remain at the top of everyone’s mind while investing on the auspicious occasion of Diwali. And rightly so. Gold has delivered over 55% returns in 2025 and continues to march ahead. Many investors are now eyeing investing in gold through ETFs and other forms, while some still prefer diversifying through mutual funds.

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Although past returns are not an indication of future gains, one gold fund has managed to outperform gold.

The DSP World Gold Mining Overseas Equity Omni FoF, which was previously known as DSP World Gold Fund, has generated over 100% returns in the last year, beating gold’s returns of over 55% in the same period.

Here is how this fund managed to beat gold returns.

Highly concentrated bet

The fund is a fund-of-funds, i.e., it invests in funds associated with the theme. According to the latest data available, 98% of the fund’s portfolio is invested in two overseas funds and 1.2% in debt securities. Among the overseas funds, 75.6% is invested in the BlackRock World Gold Fund and 23.2% in VanEck Gold Miners ETF.

The high concentration in the gold miners’ fund has proved to be a boon for the DSP World Gold Mining Overseas Equity Omni FoF. The demand for physical gold has seen an explosive rise in recent years as global central banks purchased over 1,000 tonnes of gold annually for the last four years, consecutively. As the physical demand for gold increased, investor optimism around the mining stocks also increased

Stellar performance by gold mining companies

The rising demand for physical gold continues to be a key tailwind for mining companies. Their share prices have seen a phenomenal rise despite the shortfall in output. The world’s leading gold producers like Newmont Corporation, Barrick Gold and Agnico Eagle Mines have reported declines in output for Q2 of 2025. The lower output in a high-demand scenario has helped miners benefit from the price rise, despite the shortfall in output. Here is how major gold mining companies have performed in 2025 on a YTD basis.

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Strong outperformance over gold and domestic equities

The DSP World Gold Mining Overseas Equity Omni FoF has delivered 106% returns on an annualised basis in a period of one year, outperforming gold returns and NIFTY50 by a huge margin. Here is how the fund has performed over different time intervals of 1 year, 3 years and 5 years.

Funds1 year3 years5 years
DSP World Gold Mining Overseas Equity Omni FoF106.8%53.9%17.5%
Benchmark FTSE Gold Mine TRI INR120.5%62.8%21.1%
NIFTY 50 TRI2.3%15.1%18.1%
Gold66.3%35.5%20.1%
Source: DSP World Gold Fund data sheet. Click here

In the short-term period of 1 year, the fund has managed to beat gold and NIFTY50 TRI returns, while underperforming its benchmark index of the FTSE Gold Min TRI index, which delivered 120.5% returns in the same period. In a medium-term 3-year period, the fund replicates similar outperformance over gold and NIFTY, while underperforming the benchmark. However, in the long term, for the period of 5 years, the fund underperformed the others by delivering 17.5% CAGR vs 21.1% of benchmark returns,18.1% of NIFTY50 and gold at 20.1%.

Disclaimer: The above-mentioned fund should nowhere be considered as a recommendation by Upstox.The information should be consumed only for educational purposes. Past returns are not an indication of future potential. We do not recommend any particular stock, funds, securities or strategies for investing. The securities quoted are exemplary and are not recommended. Please do your own research and consult SEBI-registered financial advisors before making any investment decisions.
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About The Author

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Rohan Takalkar is a senior writer at Upstox and a seasoned capital markets analyst with around 9 years of experience. He is passionate about writing on equities, global markets, and the economy.

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