ETFs

March AMFI data revealed a shift from gold to equities in investment preferences, with gold ETFs' inflows declining by 56.9%. Equity funds benefited from retail participation, reporting strong inflows amidst market volatility.

Indian households hold 25,000 to 30,000 tonnes of gold, mostly in jewellery and coins, with significant wealth gains from rising gold prices. Here's how to navigate the questions over storage, safety, insurance, investment and risk-returns.

Gold ETFs: Analysts say February’s decline largely reflects a normalisation after January’s unusually strong inflows, which were boosted by start-of-year portfolio allocations, defensive positioning and record-high gold prices.

The new SEBI rules for valuing gold and silver in ETFs will rely on domestic stock exchange prices, improving alignment with local market conditions. This change will take effect on April 1, 2026, ensuring consistency across mutual fund schemes.

In a circular issued on Thursday, the market regulator said mutual funds will now value physical gold and silver held by schemes using polled spot prices published by stock exchanges.

Silver ETFs in India gained popularity due to market volatility and SEBI reforms, offering easy access and liquidity. They provide exposure to silver without physical ownership, but investors should be cautious of the associated risks and tax implications.

Analysts at DSP Mutual Fund recently noted that gold prices have surged well beyond monetary fundamentals, raising questions about how much of this non-yielding asset central banks should hold.

Gold and Silver ETFs provide a way to invest in precious metals without physical storage. However, investors must consider taxation, expense ratios, price volatility, tracking errors, and their role in a portfolio before investing to avoid unexpected costs and risks.