Explore Top Gold Mutual Funds Amid Rising Prices in 2025

Gold has reached remarkable heights in 2025, maintaining a price above $4,000 per ounce following a significant breakout earlier in the year. This surge represents a doubling of value since 2024, prompting renewed interest from investors. As gold remains a staple in defensive investment strategies, understanding how to gain exposure through mutual funds is essential for those looking to capitalize on this precious metal’s rising value.

Investors are increasingly drawn to gold for its low correlation with stock markets and its perceived role as a hedge against inflation. While the theory suggests that as the purchasing power of the U.S. dollar decreases, gold becomes more valuable, historical performance indicates that gold has often only kept pace with inflation over the long term. Dan Burrows, a contributor for Kiplinger, notes that “even gold’s reputation as an inflation hedge isn’t all that great,” highlighting the importance of a nuanced approach to investing in gold.

For many, purchasing physical gold presents logistical challenges, including finding a reputable dealer, ensuring safe storage, and navigating potential markups when buying and selling. Gold mutual funds offer a more convenient alternative, allowing investors to engage with the market effortlessly.

Top Gold Mutual Funds to Consider

Several gold mutual funds have gained traction, accumulating billions in assets due to their ability to provide exposure to gold’s price movements. Here are three noteworthy options for investors:

Fidelity Select Gold Portfolio (FSAGX) is a leading mutual fund in this sector, with assets under management totaling $3.6 billion. It primarily invests in over 50 gold-related stocks, including major players like Agnico Eagle Mines and Franco-Nevada. With an expense ratio of 0.68% and no minimum investment requirement, FSAGX stands out for its low costs. However, its historical returns have been average compared to its peers, and it is now under new management following a leadership change in late 2024.

Another option is the OCM Gold Fund Investor Shares (OCMGX), which has assets of $173.3 million and focuses on mining companies. It has achieved strong performance over the past decade, ranking in the top 3% of its category. While the fund requires a minimum investment of $1,000, it carries a higher expense ratio of 2.38% and a sales charge of up to 4.5%, factors that investors should weigh carefully.

The First Eagle Gold Fund A Shares (SGGDX) is the largest gold-specific mutual fund, boasting $4.9 billion in assets. This fund invests primarily in mining stocks, with about 75% of its portfolio allocated to companies like Wheaton Precious Metals and Kinross Gold. It has a higher yield of 2.7% and a modest expense ratio of 1.16%, but investors should also consider its maximum sales charge of 5%.

Why Consider Gold ETFs Instead

While gold mutual funds provide valuable exposure to the commodity, they focus predominantly on mining stocks rather than the price of gold itself. This introduces an additional layer of speculation, as mining companies can fluctuate in value more dramatically than gold prices.

Investors might find that gold exchange-traded funds (ETFs) offer a more straightforward investment strategy. Gold ETFs typically have lower expenses, lack sales charges, and require only the purchase of a single share to get started. They can hold actual bullion or provide a broader range of investment strategies without the complexities associated with mutual funds.

As gold continues to capture investor interest, understanding the differences between mutual funds and ETFs is vital for making informed decisions. The recent price movements and the allure of gold as a defensive asset underscore the importance of evaluating the best avenues to gain exposure in this dynamic market.