Gold and Silver ETFs Surpass Equity Funds in Metal Investment
Last month marked a significant shift in investment trends as gold and silver exchange-traded funds (ETFs) attracted more net inflows than equity funds for the first time in history. Investors poured approximately Rs 33,000 crore into gold and silver ETFs, overshadowing the Rs 24,029 crore that flowed into equity schemes. This surge in precious metal investments coincided with a remarkable rally in their prices, prompting industry experts to note a clear trend of “performance chasing behavior” among investors.
Record Inflows into Precious Metals
In January, the combined net inflows into gold and silver ETFs reached an impressive Rs 33,000 crore, significantly surpassing the net inflows of Rs 24,029 crore into equity funds. This shift is particularly noteworthy as it reflects a growing preference for precious metals amid market volatility. Viraj Gandhi, CEO of Samco Mutual Fund, highlighted that the inflows into gold and silver ETFs were unprecedented compared to their average collections over the previous year. The data from the Association of Mutual Funds in India (AMFI) indicates that Rs 24,040 crore of the total inflows were directed towards gold ETFs, while approximately Rs 9,000 crore went into silver ETFs.
Price Surge Amid Market Volatility
The rally in gold and silver prices has been remarkable. Between December 31, 2025, and January 29, gold prices surged by 23%, reaching an all-time high of $5,586 per ounce on the New York Commodity Exchange. Silver experienced an even more dramatic increase, climbing over 60% from $70 per ounce to $121 before settling at $84. In the domestic market, the weak rupee contributed to gold prices soaring to around Rs 2 lakh per 10 grams and silver reaching Rs 4 lakh per kilogram, both record levels. This price surge, coupled with a downward trend in the equity market, has prompted many investors to shift their focus to gold and silver ETFs.
Systematic Investment Plans Reach New Heights
In addition to the inflows into ETFs, the mutual fund industry reported gross inflows through systematic investment plans (SIPs) totaling Rs 31,002 crore in January. This figure remained consistent with December 2025’s numbers but marked a new all-time high. The total assets under management (AUM) in the industry crossed Rs 81 lakh crore during the month, reflecting the growing interest in various investment avenues. The data released by AMFI underscores the resilience of the mutual fund sector, even as investors navigate through fluctuating market conditions.
Leading Players in the ETF Market
Nippon Life Mutual Fund, a key player in the gold and silver ETF market, reported that its gold ETFs held total assets worth Rs 1.63 lakh crore, while its silver ETFs accounted for Rs 1.13 lakh crore. According to AMFI, the total AUM for gold ETFs reached Rs 1.84 lakh crore, while silver ETFs, which are aggregated with other similar funds, totaled Rs 10 lakh crore as of January. This data highlights the growing significance of gold and silver ETFs in the investment landscape, especially as investors seek stability in uncertain economic times.
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