Gold, Silver ETFs dominate inflows: Precious metals drive nearly 72% of passive fund investments; AUM hits Rs 12.99 lakh crore

Gold and silver exchange-traded funds (ETFs) together accounted for 71.9% of total passive fund inflows of Rs 19,057 crore in September, underscoring investors’ growing inclination towards precious metals as a safe-haven investment amid global market volatility, as per the Association of Mutual Funds in India (AMFI).According to the monthly note, the passive fund market’s assets under management (AUM) rose 3.9% month-on-month to Rs 12.99 lakh crore in September, buoyed by rising gold prices and fresh inflows. Gold ETFs were the top performers, drawing record inflows of Rs 8,363 crore, or 43.9% of total passive fund flows, supported by a weaker rupee and heightened demand for stability amid global uncertainties. Silver ETFs followed with Rs 5,342 crore inflows, making up 28% of total passive flows, reported ET.Meanwhile, the hybrid fund category saw a 2.5% rise in AUM to Rs 10.33 lakh crore, led by multi-asset allocation funds, which surged 6.3% to Rs 1.40 lakh crore. Equity savings and balanced hybrid funds recorded gains of 4.5% and 2%, respectively. Multi-asset funds continued to post the strongest inflows and asset growth in the category.The equity mutual fund category registered net inflows for the 55th straight month, totalling Rs 30,422 crore in September, supported by domestic investors despite volatility from foreign outflows and mixed global cues.

Recent GST rate cuts and a US Fed rate reduction further bolstered market sentiment.On the debt side, the AUM of open-ended debt funds fell 4.9% to Rs 17.80 lakh crore as investors withdrew funds to meet advance tax obligations, a typical quarter-end trend. However, this was partially offset by mark-to-market gains due to easing yields.ET reported that SIP inflows touched an all-time high of Rs 29,361 crore, marking 3.9% month-on-month and 19.8% year-on-year growth.

SIP assets reached Rs 15.52 lakh crore, reflecting strong retail participation and confidence in systematic investing.Overall, the mutual fund industry’s total AUM rose to Rs 75.61 lakh crore in September, up from Rs 75.19 lakh crore in August, indicating 12.7% year-on-year growth. The industry also added 30.14 lakh new folios, taking the total to 25.19 crore, driven mainly by equity and passive fund categories.