Global gold funds remain a viable investment option for NRIs (non-resident Indians) in 2026 as a strategic way to add more stability to the portfolio. They help you hedge against currency fluctuations, inflation, and geopolitical instability, while working as a vital defensive asset against global market uncertainty. Gold has historically been a safe haven against global market volatility, while helping you safeguard the portfolio in volatile market environments. Unlike physical jewellery, gold funds have higher liquidity, which enables quicker redemption.
Why NRIs Consider Gold in Global Investing
NRIs often consider gold for global investments and portfolio diversification. This is mainly because of the following reasons:
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Gold has historically been a safe haven against inflation, currency risks, and other market risks, safeguarding purchasing power.
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It is an asset with lower equity correlation, thereby working as a portfolio buffer against volatility in the stock market.
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Many NRIs hold gold in their portfolios as a part of family traditions and mainly due to its emotional and cultural significance.
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There is higher investment flexibility in gold, with options available like global gold funds and ETFs (exchange-traded funds). Note: New SGB (Sovereign Gold Bond) investments are no longer permitted for NRIs.
Many NRIs often allocate about 5-10% of their portfolios to gold to manage future risks better, given the upward rise in gold prices throughout the country.
What Is a Global Gold Fund?
A global gold fund is a mutual fund or ETF (exchange-traded fund) that invests globally, either in mining equities or as a Fund of Funds (FoF) that tracks international gold indices. These funds enable diversified exposure to the mainstream gold industry, enabling gains from rising gold prices without the risks and issues of holding physical jewellery.
While many focus on miners, others provide direct exposure to the commodity price itself. Note: Mining-linked funds may carry higher equity market risk but can offer dividend yields, unlike physical gold. They invest at least 70% in global gold mining companies in most cases. Many of these funds also diversify investments into other metals like platinum, silver, and palladium, with an objective of long-term capital appreciation and broader global exposure.
Key Features and Benefits of Global Gold Funds
Some of the main features and benefits of global gold funds include the following:
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Zero storage or security risks without any insurance, lockers, or worries about storage or theft.
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Higher liquidity and convenience, since units may be redeemed or purchased on any business day. This ensures higher convenience than physical gold, which needs you to find sellers/buyers.
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Experienced fund managers track market movements and gold prices, thereby aiming to optimise the performance of the portfolio.
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Investments are mostly made in 99.5% pure gold, with the NAV (net asset value) published on a daily basis for higher transparency.
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Flexible investment options via SIPs enable financial discipline and higher accessibility for retail investors.
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Gold funds hedge against economic downturns and inflation to preserve wealth, while diversifying the portfolio and spreading out overall risks.
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They are usually more affordable than purchasing physical gold, owing to zero making charges and lower costs of transactions.
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You do not need a demat account for investing in many gold funds, unlike ETFs, which ensure higher convenience.
Risks and Returns of Investing in a Global Gold Fund
The main return aspects linked to investing in a global gold fund include the following:
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Gold funds have historically ensured long-term stability, delivering average returns of 15–19% per annum, with recent bull runs in 2025 and 2026 pushing some high-performing funds significantly higher due to global demand.
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They are considered a safe haven and hedge against global uncertainty, currency devaluation, and inflation.
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Unlike physical gold, ETFs or gold funds have more liquidity and may be easily sold or purchased on stock exchanges. This helps avoid insurance, storage, and making charges.
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These funds hold a lower correlation with equity markets, thereby functioning as a buffer for investment portfolios during downturns in the stock market.
Some of the core risks include the following:
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Gold price volatility in the short term.
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Changes in foreign exchange rates between the currencies of underlying assets and local currencies of investors may impact returns of global funds.
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Expense ratios and management fees may erode the final returns.
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Many gold funds are growth-oriented, which means that they do not pay dividends, unlike bonds or stocks (though mining-equity funds are an exception).
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Gold may sometimes underperform in bull markets or rising equity markets.
For NRIs, the holding period for 'Long-Term' classification is 12 months for listed ETFs and 24 months for Gold Mutual Funds (FoFs).
Who Should Consider a Global Gold Fund?
A global gold fund can be considered by these investors:
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Investors looking to diversify their portfolios to shift away from heavier equity exposure and safeguard against market downturns.
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Those who want to preserve their purchasing power, since gold has always been a safe haven against inflation.
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Investors looking for long-term wealth creation instead of speculation in the short term.
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Those looking for highly liquid, digital, and swiftly tradable assets over physical gold, with its purity and storage concerns.
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Smaller investors looking to participate in the global gold market with regular investments (SIPs).
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Risk-conscious investors who want to stabilise their portfolios with a more conservative to moderate investment approach.
How HDFC Life International Helps
HDFC Life International offers USD-denominated Investment-Linked Insurance Plans such as Global Wealth Advantage Nova Ace, issued from IFSC, GIFT City. These plans go beyond traditional investing by giving you access to global markets and asset classes, including gold through the Global Gold Fund Strategy.
This means you can gain exposure to gold while building your wealth in USD, one of the world's most widely accepted currencies. The result: the potential to build global wealth with global purchasing power.
With access to 12 investment strategies spanning asset classes such as equity, gold, debt and more, you can switch between strategies to respond to changing market conditions and opportunities. The plans also offer features such as the Fund Accelerator, which can boost your investment allocation up to 105% from Day 1 simply by choosing a longer premium payment term, and a Systematic Withdrawal Plan (SWP) option to create a potential regular income in US Dollars.
And alongside your investment, you get global life insurance coverage to help safeguard your family's future.
In one plan: access global markets, include gold in your portfolio, build wealth in USD and protect the life you've built beyond borders.
