India’s Gold and Silver Mutual Fund Assets Cross ₹1 Lakh Crore Amid Rising Demand

India’s gold and silver mutual funds have crossed a combined assets under management (AUM) of ₹1 lakh crore, reflecting rising investor interest in precious metals during a period of global uncertainty. According to the AMFI CEO in an interview with Moneycontrol, both metals are witnessing strong traction due to different demand drivers.

Gold is benefiting from sustained central bank buying, while silver is seeing a surge in industrial usage. The shift marks a broader trend of investors diversifying portfolios into commodities.

Why Are Investors Turning to Gold and Silver?

Gold and silver are increasingly being added to portfolios as part of a broader diversification strategy.

• Heightened global volatility prompting a move toward safe-haven assets
• Strong central bank accumulation supporting gold demand
• Industrial demand boosting long-term interest in silver
• Expectations of a widening demand–supply gap in silver

Chalasani explained that investors are exploring precious metals to enhance stability during periods of uncertainty.

Gold Gains from Strong Safe-Haven Appeal

Gold continues to attract significant inflows due to macroeconomic and geopolitical factors. Chalasani noted that gold and US Treasuries have traditionally acted as global safe havens, but the tilt towards gold has strengthened in recent years due to persistent buying by central banks.

Silver’s Rise Driven by Industrial Demand

Silver’s investment case is being shaped by its growing use in modern industries. The metal’s dual role as both an industrial input and a precious asset is increasing its relevance for diversified portfolios.

Surge in Mutual Fund Inflows

Gold and silver mutual funds have seen strong inflows over the last five to six months and the combined AUM has crossed ₹1 lakh crore. While commodity prices move in cycles, recent inflows show a clear preference for stability-oriented investments.

Read More: Best Equity Mutual Funds in November 2025 Based on AUM.

Conclusion

India’s gold and silver mutual fund category crossing ₹1 lakh crore in AUM reflects a significant shift in investor behaviour. Gold is gaining from central bank demand, while silver is benefiting from rising industrial usage and supply constraints.

Together, these trends are driving strong inflows into precious metals as investors look to diversify portfolios and manage risk amid global uncertainty. The momentum underscores the growing role of commodities in long-term wealth strategies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.