Overall, other passive schemes, which include gold and silver ETFs, FoFs, and index funds, saw monthly inflows fall 65% to ₹13,879 crore from ₹39,954 crore in January.
The decline in gold ETF inflows follows January’s exceptional surge, which was driven by start-of-year portfolio allocations and rebalancing, as well as some profit-booking by investors. Silver ETFs, meanwhile, saw both outflows and a degrowth in assets under management on a month-on-month basis.
Nehal Meshram, Senior Analyst – Manager Research at Morningstar Investment Research India, said that despite the moderation, gold and silver ETFs remain popular due to their liquidity, transparency, and portfolio diversification benefits.
Investors are using these products not just for tactical exposure, but as a strategic allocation to hedge against market and geopolitical risks.
Santosh Joseph, Founder and Partner at Germinate Investor Services LLP, added that multi-asset funds are complementing this trend by offering dynamic or static allocation to gold and silver, along with hedging and currency exposure benefits.
“Investors are beginning to realise the unmissable potential of these funds in building balanced portfolios,” he said.
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