Currently, the top gold mutual funds are Fidelity® Select Gold Portfolio, Gabelli Gold Fund and the Invesco Gold & Special Minerals Fund.
Gold has long been a symbol of wealth and stability and in today’s volatile markets, it’s more relevant than ever. Gold mutual funds offer a modern, hassle-free way to invest in this timeless asset without needing vaults or physical storage. Whether you’re looking to hedge against inflation, diversify your portfolio or tap into gold’s long-term growth potential, these funds provide a flexible and accessible option.
What are Gold Mutual Funds?
Gold mutual funds pool money from investors to invest primarily in gold and gold-related assets. These funds may include physical gold, shares in gold mining companies or gold exchange-traded funds (ETFs). Unlike investing in physical gold, gold mutual funds eliminate concerns about storage, insurance and authenticity while offering professional fund management.
They are particularly appealing for portfolio diversification because they allow investors to gain exposure to gold’s value without holding the physical commodity. Their convenience and potential for steady growth make them a popular choice for those looking to balance their portfolios during uncertain economic times.
Why Should You Invest in Gold Mutual Funds?
Gold mutual funds combine stability, growth potential and convenience, making them a compelling option for a well-rounded investment strategy.
Diversify and Protect Your Portfolio
Gold mutual funds are powerful tools for diversification, especially during economic downturns. Historically, gold has shown an inverse correlation with traditional equity markets; when stocks fall, gold often rises. This makes gold mutual funds an excellent hedge against market volatility and inflation. Adding them to your portfolio can reduce overall risk and enhance resilience during turbulent times.
Convenience with High Liquidity
Unlike physical gold, gold mutual funds are easy to buy, sell and manage. They offer high liquidity, meaning you can access your funds quickly without the hassles of storing and securing gold. For investors seeking flexibility, this makes gold mutual funds an ideal choice. Whether you need cash for an emergency or want to adjust your portfolio, redeeming a gold mutual fund is far simpler than selling physical gold.
Steady Long-Term Growth
Gold has historically appreciated over time, making it a reliable long-term investment. Gold mutual funds let you capitalize on this growth without the complexities of managing physical assets. By investing in professionally managed funds, you can enjoy steady returns and the potential for wealth accumulation over the years. This makes them particularly attractive for achieving retirement or wealth preservation goals.
Choosing the Right Gold Mutual Funds
Selecting the best gold mutual fund requires careful evaluation. Review a fund’s historical performance, focusing on returns during both market booms and downturns. Pay attention to expense ratios, as high fees can erode your earnings over time. Assess the fund’s portfolio composition to ensure it aligns with your investment goals, whether exposure to physical gold, mining stocks or a mix of both.
Don’t overlook the fund manager's track record, as experienced managers are better equipped to navigate volatile gold markets. Consider the fund’s risk profile and whether it complements your investment strategy and timeline.
10 Best Gold Mutual Funds
Investing in gold mutual funds can be a strategic move to diversify your portfolio and hedge against economic uncertainties. Here are 10 top-performing gold mutual funds to consider.
1. Fidelity® Select Gold Portfolio (FSAGX)
Managed by Fidelity Investments, the Fidelity® Select Gold Portfolio focuses on companies engaged in gold-related activities, including mining and production. Its top holdings include Newmont Corp., Barrick Gold Corp., Franco-Nevada Corp., Agnico Eagle Mines Ltd. and Wheaton Precious Metals Corp.
Why We Picked It: FSAGX offers diversified exposure to the gold sector with a relatively low expense ratio of 0.70%, making it a cost-effective option for investors seeking to capitalize on gold market movements.
2. Gabelli Gold Fund (GLDAX)
The Gabelli Gold Fund invests primarily in equity securities of gold-related companies. Its top holdings feature Newmont Corp., Agnico Eagle Mines Ltd., Northern Star Resources and Wheaton Precious Metals.
Why We Picked It: With a focus on long-term capital appreciation and a net expense ratio of 1.49%, GLDAX provides targeted exposure to the gold sector, appealing to investors seeking growth in this market.
3. Invesco Gold & Special Minerals Fund (OPGSX)
Invesco's fund invests in companies that produce gold and other precious metals. Its top holdings include Agnico Eagle Mines Ltd., Northern Star Resources, Barrick Gold Corp., Ivanhoe Mines Ltd. and Newmont Corp.
Why We Picked It: OPGSX offers diversified exposure to precious metals with a net expense ratio of 1.06%, making it a solid choice for investors interested in this sector.
4. OCM Gold Fund (OCMGX)
The OCM Gold Fund focuses on publicly held mining companies worldwide. Its top holdings include Newmont Corp., Agnico Eagle Mines Ltd., Wheaton Precious Metals Corp., Barrick Gold Corp. and Jaguar Mining Inc.
Why We Picked It: With a notable concentration in its top holdings and a focus on long-term capital growth, OCMGX suits investors seeking concentrated exposure to leading gold mining companies.
5. Franklin Gold and Precious Metals Fund (FKRCX)
Managed by Franklin Templeton, this fund invests in companies that produce gold and other precious metals. Its top holdings include Alamos Gold Inc., B2Gold Corp., Barrick Gold Corp., Endeavour Mining plc and Newmont Corp.
Why We Picked It: FKRCX aims for capital appreciation and income generation, offering a balanced investment approach in the precious metals sector.
6. VanEck International Investors Gold Fund (INIVX)
This fund focuses on gold-mining companies worldwide. Its top holdings include Newmont Corp., Barrick Gold Corp., Agnico Eagle Mines Ltd., Franco-Nevada Corp. and Wheaton Precious Metals Corp.
Why We Picked It: INIVX provides global exposure to the gold mining industry, appealing to investors seeking diversification across different markets.
7. American Century Global Gold Fund (BGEIX)
The American Century Global Gold Fund invests in gold mining and production companies. Top holdings include Newmont Corp., Barrick Gold Corp., Agnico Eagle Mines Ltd., Franco-Nevada Corp. and Wheaton Precious Metals Corp.
Why We Picked It: BGEIX offers a diversified portfolio of gold-related equities, making it a suitable option for investors seeking exposure to the global gold sector.
8. First Eagle Gold Fund (SGGDX)
First Eagle's fund invests in gold and gold-related securities. Top holdings include Newmont Corp., Barrick Gold Corp., Agnico Eagle Mines Ltd., Franco-Nevada Corp. and Wheaton Precious Metals Corp.
Why We Picked It: SGGDX combines a mix of physical gold investments and mining equities, providing a balanced approach to gold investing.
9. Tocqueville Gold Fund (TGLDX)
The Tocqueville Gold Fund focuses on gold mining and related companies. Top holdings include Newmont Corp., Barrick Gold Corp., Agnico Eagle Mines Ltd., Franco-Nevada Corp. and Wheaton Precious Metals Corp.
Why We Picked It: TGLDX offers a concentrated portfolio of gold-related investments, appealing to investors seeking focused exposure to the sector.
10. Sprott Gold Equity Fund (SGDLX)
This fund, offered by Sprott Asset Management, invests in gold mining companies. Its top holdings include Newmont Corp., Barrick Gold Corp., Agnico Eagle Mines Ltd., Franco-Nevada Corp. and Wheaton Precious Metals Corp.
Why We Picked It: SGDLX provides exposure to a diversified portfolio of gold mining equities, suitable for investors looking to capitalize on the gold market.
Should You Invest in Gold Mutual Funds?
Gold mutual funds are an excellent option for investors looking to diversify their portfolios and hedge against economic uncertainties. They provide a safeguard during inflation and market downturns while offering steady long-term growth. Like any investment, they come with risks and may not suit everyone. Before investing, evaluate your risk tolerance, financial goals and timeline. For those seeking stability and diversification, gold mutual funds can be a valuable addition to an investment portfolio.
Golden Opportunities Await
Gold mutual funds provide a modern, flexible way to tap into the enduring value of gold. From portfolio diversification to long-term growth, they combine convenience with stability, making them a smart choice for investors. Evaluate your financial goals, research your options and let gold mutual funds shine in your portfolio.
Frequently Asked Questions
What is the best gold mutual fund?
The best gold mutual fund depends on your financial goals, but funds like Fidelity® Select Gold Portfolio (FSAGX) and Franklin Gold and Precious Metals Fund (FKRCX) are highly rated for relatively consistent returns and experienced management.
Which is better, gold ETF or gold mutual fund?
Gold ETFs offer lower costs and direct tracking of gold prices, while gold mutual funds provide professional management and a mix of physical gold and mining stocks.
Should I invest in gold mutual funds now?
If you’re looking to hedge against inflation or diversify during economic uncertainty, gold mutual funds can be a timely addition to your portfolio.