A golden rush defined January for India’s mutual fund investors, as Gold and Silver ETFs amassed over ₹33,000 crore in fresh investments, propelling AUM past ₹3 lakh crore – a record high per AMFI figures. This five-month tripling from August’s ₹1 lakh crore level persisted despite metal price swings.
Folio counts exploded: Gold ETFs from 80.34 lakh to 1.14 crore; Silver from 11.31 lakh to 47.85 lakh. These inflows dwarfed equity funds’ ₹24,029 crore, flipping December’s script where metals drew ₹15,609 crore against equities’ ₹28,055 crore.
Why the shift? Experts cite economic jitters prompting a flight to quality. ‘Allocate 10-15% to precious metals long-term, via SIPs not lumps,’ they advise. Broader AUM: Equity-oriented open-ends at ₹34.86 lakh crore, debt at ₹18.90 lakh crore.
Morningstar’s Himanshu Shrivastava observes, ‘Market ups and downs failed to halt investments, fueled by SIP discipline and belief in India’s growth story.’ January uplifts in large-cap and focused funds contrasted moderating mid/small-cap trends.
This phenomenon highlights maturing investor behavior: blending growth equities with metal hedges. As uncertainties loom – from inflation to geopolitics – Gold and Silver ETFs emerge as indispensable tools for balanced, future-proof portfolios.