SBI Gold Fund vs Physical Gold 1-Year Return Calculations: Which has given higher return on Rs 3 lakh one-time investment in 1 year; see returns

SBI Gold Fund vs Physical Gold: Gold has attracted masses since ages, but its glitter has garnered more attention of late due to its sharply rising price.

Instable share market performance and changed geopolitical situations due to US President Donald Trump's tough tariff stance against the world's leading economies have been the key factors behind it.

MCX Gold hit a record high today (March 18, 2025) as its April 4 contract soared to Rs 88,499.

The price for 24-carat gold per 10 grammes in Delhi today is at Rs 90,150, while in Mumbai, it was over Rs 91,000, and in Ahmedabad, it is near Rs 94,000. 

The high performance of the gold price is also reflected in the performance of SBI Gold Mutual Fund, which has emerged as the top-performing SBI mutual fund in terms of annualised return (CAGR) in the last 1 year.

But which of them has given a higher return in 1 year – SBI Gold Fund or physical gold?

Where would you have got a higher return on a Rs 3 lakh one-time in either of them? See calculations – 

What is SBI Gold Mutual Fund?

SBI Gold Direct Plan-Growth

The fund has given a 32.52 per cent annualised return in the 1-year time frame.

It has assets under management of Rs 3,225 crore, while its net asset value (NAV) as on March 17, 2025, is Rs 27.15.

Benchmarked against the domestic price of physical gold, the fund has given a 7.88 per cent annualised return since its inception in January 2013.

With an expense ratio of 0.1 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment.

Raviprakash Sharma is the manager of the fund.

Value of Rs 3 lakh investment in SBI Gold Fund in 1 year

A Rs 3,00,000 one-time investment in SBI Gold Fund has increased to Rs 3.98 lakh.

Physical gold

The price of physical gold has risen for two main reasons in the last 1 year.

The first reason is that people are investing in the yellow metal at a time when leading benchmark indices – BSE Sensex and Nifty 50 – have been inconsistent performers.

The second is Trump's trade tariffs on leading economies across the world.

The result is the fast-rising price of gold. If we compare the price of 24-carat gold in New Delhi, it has jumped by 17.70 per cent, to Rs 90,150 from Rs 76,590 in the 1-year period.

Value of Rs 3 lakh investment in 24-carat gold

A year before, the estimated amount of 24-carat gold that a buyer could have bought from a Rs 3,00,000 investment was 39.17 grammes. 

As per today's rate, the same buyer can buy an estimated 33.30 grammes. 

So the value of the Rs 3,00,000 investment made a year ago is an estimated Rs 3,53,117.55.

Hence, you can see that SBI Gold Fund has generated a higher return compared to physical gold on a Rs 3,00,000 investment in the 1-year period..