How to invest in gold and silver through mutual funds and earn more profits?

The price of gold & silver has reached a historic high in recent times. Small investors are showing great interest in investing in these precious metals. When buying as jewelry, 12-15% is spent in terms of processing fees, depreciation, and GST. Due to this, even if the price rises, you do not get full profit. Therefore, let's look at some alternative investment options...


Invest in gold through mutual funds..!

You can easily invest in metals like gold and silver through mutual funds and get full profit. Let's see how. Gold ETF is a way to buy gold in paper form instead of buying it as jewelry. Like stocks in the stock market, you can invest in gold during stock market trading hours through Gold ETF. Similarly, you can invest in silver through Silver ETF. A demat account is required to invest in ETF schemes.


Invest in gold through mutual funds

You can invest even ₹100 in gold..!

In the Gold ETF scheme, one gram of gold is divided into 100 and is one unit. In that case, you can start investing in gold even if you have about ₹100. The expense ratio for investment is 0.5% - 0.6%. In the Silver ETF scheme, one gram of silver is one unit. In that case, you can invest in silver even if you have Rs.100.

Those who do not have a demat account can invest in Gold Savings Fund and Silver Savings Fund schemes through mutual fund schemes. This savings scheme is a fund of funds scheme that invests in Gold/Silver ETF schemes. The expense ratio for investment in this scheme is about 0.7% - 0.9%.

You can also invest in these Gold and Silver Savings Fund type investments through the Systematic Investment Plan (SIP) method. The minimum investment varies from ₹100 to ₹100 depending on the mutual fund company.


Digital Gold and Silver Investment: Benefits..!

We have already seen that when buying precious metals like gold and silver as jewelry, there will be losses in various ways like processing fee/damage/GST. Losses can occur due to deterioration in the quality of the metals. There are expenses like locker rental to protect gold and silver jewelry. There is also a risk of jewelry being stolen.

All these compensations are avoided when investing through Mutual Fund schemes. All the money given is invested completely in precious metals without any compensation.


Digital Gold and Silver Investment


Multi-Asset Mutual Fund Schemes..!

Investors can also invest in precious metals like gold and silver through Multi Asset Mutual Fund schemes. As of 2025, various Mutual Fund companies have invested through 20 types of gold ETF schemes. Similarly, 15 types of ETF schemes have been invested in silver.


Gold and Silver Investment: How Much Return Will You Get?

Gold has given its investors excellent returns in the last 10 years. In the last one year, gold has given a return of 31% and silver has given a return of 15%. In the long term, gold has given a return of 22% and silver has given a return of 18% in the last three years.


How much to invest?

By investing in gold and silver, you can protect yourself from rising inflation. When the stock market experiences a decline, the prices of gold and silver usually rise. Therefore, the overall return of the investment mix is not affected much. Silver is used as jewelry and is also used in various industries such as coins, photography, electronics, and solar panels. Therefore, its price is likely to increase more than gold.

Financial advisors can invest 10%-15% of a person's total investments in gold and silver, depending on his risk-taking ability. Moreover, if you invest in mutual fund schemes through SIP, you are likely to get more units on average in the event of fluctuations.

Those who have invested a maximum of 10% of their total investment mix in gold and silver can invest an additional 5%. Those who have invested more than 15% can sell the additional profit and take the profit.


General Disclaimer..

Before investing, you should consult a SEBI registered investment advisor and make an investment decision. It is profitable to wait for the right opportunities and buy in small quantities when those opportunities arise.

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