Gold Fund is an open ended mutual fund or an ETF (Exchange Traded Fund) that puts its corpus majorly in gold producing (or other related ancillary activities) entities or bullion. The ones which invest in bullion or physical gold provide investors the chance to buy pure gold at a lower cost.

There are various types of Gold Funds such as Gold Mining Funds, Gold Fund of Fund and Gold ETFs. It is easier to invest in a Gold Fund rather than holding physical gold. Gold Funds suit those investors who have an appetite or desire for gold.