Gold and Silver ETFs Beat Equity Inflows in January in India
Gold and Silver ETFs Beat Equity Inflows in January in India
January data shows gold and silver ETFs attracting over ₹33,500 crore, surpassing equity funds as precious metals rally.
Mumbai: Mutual fund investors doubled their allocations to precious metals in January, riding a surge in gold and silver prices. Gold and silver ETFs attracted ₹33,503 crore in January, more than double December's ₹15,600 crore, and the inflows easily topped equity mutual funds, which drew ₹24,029 crore. This marks the first time the precious-metals category outpaced equity funds in monthly flows, highlighting a shift toward safe-haven assets amid volatile markets.
Gold ETFs drew ₹24,040 crore in January, up from ₹11,647 crore in December, while silver ETFs attracted ₹9,463 crore. The combined inflows into gold and silver ETFs stood at ₹33,503 crore, underscoring the magnitude of the move into precious metals.
Over the past year, gold has returned about 80% in rupee terms, while silver has surged roughly 158%. The extraordinary performance has helped bolster investor interest in precious metals and multi-asset funds, which also saw rising inflows as investors seek diversified exposure.
January also saw robust flows into other fund categories. Overnight funds recorded ₹46,280 crore in inflows, and liquid funds drew ₹30,682 crore, indicating a broad-based appetite for short-duration assets amid uncertain rates and markets.
Analysts say the trend reflects performance-chasing behavior as investors chase higher returns in precious metals. Even as gold and silver attracted record monthly inflows, equity mutual funds remained positive, with SIP collections steady at ₹31,002 crore, while equity inflows stood at ₹24,029 crore for the month. This mix points to a nuanced investor stance: while some seek safety and returns in metals, others continue to deploy money across equities and SIPs for long-term growth.
