Mumbai’s investment scene is buzzing with unprecedented activity in precious metals. Data from the Association of Mutual Funds in India (AMFI) reveals that Gold and Silver Exchange Traded Funds (ETFs) shattered records in January, with Assets Under Management (AUM) soaring past the ₹3 lakh crore mark for the first time.
This milestone comes after a remarkable five-month surge, where AUM nearly tripled from ₹1 lakh crore in August to over ₹3 lakh crore by January’s end. Despite fluctuations in gold and silver prices, investors poured in massive sums, signaling strong confidence in these safe-haven assets.
Investor participation has skyrocketed too. Gold ETF folios jumped from 80.34 lakh to 1.14 crore, while Silver ETF folios exploded from 11.31 lakh to 47.85 lakh. In January alone, ₹24,039 crore flowed into Gold ETFs and ₹9,463 crore into Silver ETFs, totaling over ₹33,000 crore – outpacing the ₹24,029 crore in equity funds for the same month.
For context, December saw ₹15,609 crore in these ETFs compared to ₹28,055 crore in equities. Experts attribute this shift to economic uncertainties, urging long-term investors to allocate 10-15% of portfolios to precious metals via systematic investments rather than lump sums.
Meanwhile, open-ended equity-oriented schemes closed January with ₹34.86 lakh crore AUM, and debt-oriented at ₹18.90 lakh crore. Himanshu Shrivastava, Principal Research at Morningstar Investment Research India, noted sustained investments amid market volatility, bolstered by SIPs and faith in India’s long-term equity growth. Large-cap and focused funds saw gains over December, though mid and small-cap inflows moderated slightly.
This trend underscores a strategic pivot towards diversification, as investors brace for global headwinds while eyeing India’s robust economic trajectory.