Nippon India MF Leads Gold and Silver ETF Trade on Akshaya Tritiya with 63% Share

Akshaya Tritiya, a festival celebrated for ushering in wealth and prosperity, typically sees a spike in purchases of gold and other valuables. This year, however, investors showed increasing interest in a more modern form of investing, exchange-traded funds (ETFs) backed by precious metals.

Nippon India MF Emerges as Volume Leader

On this auspicious day, Nippon India Mutual Fund (NIMF) reported ₹404 crore in combined volumes across its gold and silver ETFs. This figure represented an impressive 63% of the total traded volume in this category, firmly positioning NIMF as the volume leader in the segment.

Liquidity and Impact Cost: Key Market Considerations

Higher traded volumes on NIMF’s ETFs are indicative of greater liquidity—an important factor for market participants seeking to reduce tracking errors and minimise impact costs. ETFs with high liquidity allow for more efficient trade execution, enhancing overall investment experience.

Growing Popularity of Gold and Silver ETFs

According to Arun Sundaresan, Head of ETF at Nippon Life India Asset Management, there has been a noticeable uptick in investor interest in gold and silver through ETFs. These products offer a seamless and secure alternative to physical ownership, eliminating concerns about purity, storage, and security.

Read More: Difference Between Gold ETF And Gold Fund.

Strong Industry Presence and Market Share

For the financial year 2024–25, Nippon India Mutual Fund accounted for 60% of the industry’s average daily volume in gold and silver ETFs. The fund house also boasts the largest ETF investor base in India, with 1.43 crore investors, constituting 53% of the total ETF investor count across the mutual fund industry.

Conclusion

With a combination of consistent performance, high liquidity, and widespread investor participation, NIMF continues to reinforce its position in the ETF space. Its dominance during Akshaya Tritiya serves as a testament to its operational scale and investor confidence in its offerings.

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. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.