Two years after the launch of the first mutual fund (MF) offering, silver exchange-traded funds (ETFs) are gaining greater traction. The assets under management (AUM) of the eight ETFs offered by various fund houses crossed the Rs 5,000 crore mark in April amid a rally in silver prices.
Last month, the AUM of gold ETFs offered by domestic MFs topped Rs 31,000 crore for the first time.
Inflows into silver ETFs have been elevated since the start of the calendar year 2024. During January–March 2024, the garnered net inflows of over Rs 1,500 crore compared to around Rs 1,300 crore inflow in the previous nine months of 2023–24 shows data from the Association of Mutual Funds in India.
Back-of-the-envelope calculations based on April 25 AUM disclosures show an inflow of around Rs 650 crore in April.
Likewise, inflows into gold ETFs — a more established offering — have averaged Rs 550 crore over the past nine months.
The inflows into these two precious metals through the MF route come on the back of a sharp rally this calendar. From this year’s low, gold and silver prices in the domestic market have advanced 17 per cent each from this year’s low.
The rally has burnished the image of gold and silver as ‘safe-haven’ bets during times of geopolitical crisis.