Investors are flocking to Gold and Silver ETFs like never before, pushing combined AUM beyond ₹3 lakh crore in January, according to AMFI data. This represents a staggering near-tripling in just five months, from ₹1 lakh crore in August amid price volatility in the metals market.
The influx reflects a broader appetite for stability. January inflows hit ₹24,039 crore for Gold and ₹9,463 crore for Silver, eclipsing equity fund collections of ₹24,029 crore. Folios tell a similar story of explosive growth: Gold ETFs now boast 1.14 crore accounts, up from 80.34 lakh; Silver from 11.31 lakh to 47.85 lakh.
Contrast this with December’s ₹15,609 crore in metal ETFs versus ₹28,055 crore in equities – a clear reversal. Market watchers point to geopolitical tensions and inflation fears driving this safe-haven rush. Financial advisors recommend 10-15% portfolio exposure to gold and silver, invested gradually through SIPs for optimal returns.
Equity schemes held steady with ₹34.86 lakh crore AUM, debt at ₹18.90 lakh crore. Morningstar’s Himanshu Shrivastava highlights resilience: ‘Volatility didn’t deter flows, thanks to steady SIPs and optimism on India’s equity markets.’ Large-cap funds outperformed, gaining traction post-December, even as mid/small-caps cooled.
As global markets wobble, this ETF boom signals savvy diversification. With India’s mutual fund industry maturing, precious metals are cementing their role as portfolio anchors, promising resilience in turbulent times.