Commodity Mutual Funds in India

Commodity mutual funds give Indian investors exposure to physical commodities — primarily gold and silver — without holding bars, coins, or a demat ETF directly. On FindMF this category spans three sub-types: Gold funds (fund-of-funds and savings funds that buy gold ETF units or allocate to physical gold), Silver funds (the newer silver-ETF-backed equivalent), and a broader Commodity bucket. Most of these are passive vehicles that track the domestic price of the underlying metal, so returns are driven by spot price moves, the rupee-dollar rate, and a small tracking gap, rather than by a fund manager's stock selection. Risk-return sits apart from equity and debt: prices can be volatile in any given year, but the metals often hold or rise when equities fall, which is why investors use them as a diversifier and inflation/currency hedge rather than a core growth engine. Allocations are typically kept modest (commonly cited at 5-15% of a portfolio). FindMF computes all returns and risk metrics from AMFI-published NAVs using a disclosed methodology — no commissions, no 'best fund' picks.

Who it suits: Investors who want a small, liquid hedge against equity drawdowns, rupee depreciation, or inflation, and prefer holding gold or silver through a mutual fund rather than physical metal or a demat account.