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Gold & Silver ETFs Eclipse Equity Funds
29 Jan
Summary
- Nippon India MF's gold and silver ETFs exceed ₹1 lakh crore AUM.
- Gold and silver ETFs are gaining traction globally.
- Precious metals serve as hedges against inflation and currency depreciation.
Exchange Traded Funds (ETFs) focused on gold and silver are rapidly accumulating assets, with Nippon India Mutual Fund's combined holdings in these precious metals now exceeding ₹1 lakh crore. This significant milestone places them on par with the largest equity mutual funds. ICICI Prudential Mutual Fund follows with substantial assets in its gold and silver ETFs.
The increasing popularity of gold and silver ETFs is driven by their function as transparent, regulated investment channels. Precious metals have historically acted as a store of value and a hedge against inflation and currency devaluation.
Global factors, including rising central bank gold reserves and growing industrial and investment demand for silver, are further boosting the appeal of these ETFs. Experts predict that as economic uncertainties, inflation risks, and currency pressures persist, gold ETFs will become increasingly vital for portfolio diversification.
