5 Best Gold Mutual Funds Investments

Believed to be a hedge against inflation and protection against market volatility, investing in gold has always held a special place in investors’ portfolios. Many also use gold as a retirement investment, taking advantage of Gold IRAs to secure their future.

So yes, the question isn’t whether you should, but how to invest in gold. And one of the most common options is to invest in gold mutual funds.

Typically, by gold mutual funds investments, we mean portfolios focusing on gold mining stocks. Some gold funds also purchase physical gold bullion or gold futures contracts.

So yes, there’s much to consider before investing in gold mutual funds. The most important decision, however, is choosing the right precious metals fund to invest in. So, without further ado, we present to you the 5 best gold mutual funds to invest in this year.

Summary of Our Top Picks

Here’s a quick overview of our top picks for the best gold mutual funds:

1. Allspring Precious Metals Fund
2. Invesco Gold & Special Minerals Fund
3. Gabelli Gold Fund
4. First Eagle Gold Fund
5. Victory Precious Metals and Minerals

#1 Allspring Precious Metals Fund – Our Top Pick

Fund Overview:

• Previously known as the Wells Fargo Precious Metals Fund (EKWAX), Allspring Precious Metals Fund has been a trusted precious metals fund since 1998.
• The fund invests up to 40% of its assets in emerging countries’ equities and 25% of its assets in debt securities linked to precious metals.
• The fund has returned 25.76 percent over the past year (October 2022-23).
• The net expense ratio for Allspring is 1.09 percent.
• Allspring has a total asset portfolio value of $216 million (2023).
• The fund’s primary portfolio holdings include Wheaton Precious Metals, Barrick Gold, Gold Field Ltd., and Kinross Gold.

#2 Invesco Gold & Special Minerals Fund

Fund Overview:

• Invesco Gold and Special Minerals Fund (OPGSX) has been one of the most trusted precious metals funds since 1983, with the investment seeking long-term capital appreciation.
• The fund primarily invests in gold mining stocks, gold ETFs, gold bullion, and other precious metals, with gold making up approximately 75% of the fund’s portfolio.
• The fund has returned 22.46 percent over the past year (October 2022-23).
• Invesco has a net expense ratio of 1.06 percent.
• The fund’s total asset under management portfolio is valued at $170 million (2023).
• Some of Invesco’s major holdings include Barrick Gold, Northern Star Resources, and Evolution Mining.

#3 Gabelli Gold Fund

Fund Overview:

• Gabelli Gold Fund was issued in 1994 by Gabelli Funds, with the fund’s primary objective being a long-term appreciation of its capital.
• The fund normally invests 80% of its net assets in US domestic and foreign-issued equity securities of companies engaged in gold-related activities, such as mining companies, and in gold bullion.
• The fund’s return over the past year (October 2022-23) has been at 22.19 percent.
• Gabelli has a higher net expense ratio of 1.51 percent.
• The fund’s total value of assets in 2023 was $296.5 million.
• Its most significant holdings include Franco-Nevada, Barrick Gold, and Agnico Eagle Mines.

#4 First Eagle Gold Fund

Fund Overview:

• First Eagle Gold Fund was issued by First Eagle Investments in 1993. Its primary objective is to provide investors with the chance to participate in the investment characteristics of gold.
• The fund invests a minimum of 80% of its net assets in gold and gold-related securities, such as gold mining companies.
• First Eagle Gold Fund has returned 22.76 percent over the past year (October 2022-23).
• The fund’s net expense ratio is 1.19 percent.
• The total value of the fund’s assets was $216 million in 2023.

#5 Victory Precious Metals and Minerals

Fund Overview:

• Victory Precious Metals and Minerals Fund was issued by VictoryCapital in 1984 with the objective of seeking long-term capital appreciation and protecting the purchasing power of the capital against inflation.
• The fund invests up to 80% of its net assets in equity securities of US and foreign companies engaged in mining and exploration of gold and other precious metals.
• The fund has returned 23.08 percent over the past year (October 2022-23).
• The fund has a net expense ratio of 1.19 percent.
• Its total value of assets under management in 2023 was $459.11 million.

How to Choose the Best Gold Mutual Fund?

Investing in gold can be an excellent way to diversify your portfolio. Gold mutual funds offer numerous advantages, including high flexibility, liquidity, and gold’s performance as an inflation hedge.

All the funds we’ve listed above provide investors with a fantastic opportunity to maximize these benefits. But how to decide which one to choose? When it comes to that, there are several things an aspiring gold investor should consider. Namely:

• Fund’s returns. Analyze the fund’s overall and yearly returns. The higher they are, the better, which indicates there’s a good chance of your investment yielding higher returns.
• Minimum investment. Most precious metals mutual funds require a minimum of $1,000 as an initial investment. However, some might also require $3,000 or more, whereas others have no minimal requirements at all.
• Expense ratio. The expense ratio relates to the amount of money the fund uses to manage its assets. Most of our recommended funds have a net expense ratio oscillating between 1 and 1.2 percent.
• Assets under management. This metric relates to the mix and number of assets the fund manages. If this number is low, it may indicate that the fund offers lower liquidity.

Key Takeaways

Gold mutual funds offer investors an excellent opportunity to diversify their portfolios while also protecting themselves from market volatility and inflation. Investing in such funds is also relatively straightforward, making them a good option for less-experienced investors or individuals trying to secure their retirement savings.

All the funds you see above can help you achieve these goals. They are some of the most trusted investment funds with proven performance records. So yes, if you want to increase your chances of yielding returns from your gold investment, these mutual funds are the best choice around.

And if you have any more questions regarding gold mutual funds, gold IRAs, or precious metals investments, be sure to browse our knowledge base. This is where you’ll find more of our in-depth guides to help you navigate through the world of gold investing.

Article Sources

At Gold IRA Blueprint, we dive deep into the world of gold IRAs, using trusted sources to back up our insights. Our sources range from official documents to expert interviews, ensuring our content is both accurate and reliable. We also draw on research from reputable publishers to give you the most comprehensive understanding possible. Check out our editorial policy to see how we maintain our high standards for accuracy and fairness. Also make sure to check out our Financial Review Process to have a better understanding of our process.

1. https://money.usnews.com/funds/mutual-funds/rankings/equity-precious-metals
2. https://www.investopedia.com/articles/investing/090215/top-5-precious-metals-mutual-funds.asp