What is a risk-adjusted return?

    The Sharpe ratio is a measure of risk-adjusted returns. It calculates the excess return generated by an investment over the risk-free rate for every unit of risk taken, measured by standard deviation. Here are the gold commodity-based funds with the highest Sharpe ratios, all above 1.15, along with their three-year returns. (Source: MF Screener)

    UTI Gold ETF FoF

    UTI Gold ETF FoF had a Sharpe ratio of 1.27. The fund delivered a return of 29.96% over the past three years.

    Kotak Gold Fund

    Kotak Gold Fund had a Sharpe ratio of 1.23, while its three-year return stood at 29.37%.

    Axis Gold Fund

    Axis Gold Fund had a Sharpe ratio of 1.23 and delivered a three-year return of 29.33%.

    Quantum Gold ETF FoF

    Quantum Gold ETF FoF recorded a Sharpe ratio of 1.22. The fund generated a return of 29.75% over the past three years.

    Invesco India Gold ETF FoF

    Invesco India Gold ETF FoF had a Sharpe ratio of 1.20, while its three-year return stood at 29.56%.

    HDFC Gold ETF Fund of Fund

    HDFC Gold ETF Fund of Fund recorded a Sharpe ratio of 1.19 and delivered a three-year return of 29.50%.


    SBI Gold Fund

    SBI Gold Fund had a Sharpe ratio of 1.18, with a three-year return of 29.53%.

    LIC MF Gold ETF FoF and ICICI Prudential Gold ETF FoF

    Both LIC MF Gold ETF FoF and ICICI Prudential Gold ETF FoF recorded a Sharpe ratio of 1.15. Their three-year returns stood at 29.43% and 29.52%, respectively.