For first time, Indians invest more in gold ETFs than equity MFs, Pg17

Key Highlights:

• Gold Exchange Traded Funds (ETFs) saw record inflows of Rs 24,040 crore in January 2026, surpassing equity-oriented mutual funds for the first time in India.
• Inflows into equity-oriented Mutual Funds (MFs) decreased by 14% to Rs 24,029 crore in January 2026, marking the third consecutive month of decline.
• Systematic Investment Plans (SIPs) remained stable at Rs 31,002 crore in January, with the number of SIP accounts increasing to 10.29 crore.
• Foreign Portfolio Investors (FPIs) net sold nearly Rs 36,000 crore of Indian equities in January but returned in February, purchasing over Rs 15,000 crore worth of shares.

Detailed Insights:

• The surge in gold ETF investments is attributed to rising gold prices, driven by a weakening US dollar, central bank buying, and geopolitical instability.
• Silver ETFs also experienced significant inflows, reaching Rs 9,463 crore, with total assets under management at Rs 1.17 lakh crore by the end of January.
• Despite the decline in equity MF inflows, the Assets Under Management (AUM) of equity funds stood at Rs 34.87 lakh crore as of January 31, 2026, indicating continued investor interest.
• Debt mutual funds saw inflows of Rs 74,827 crore in January, a decrease of 42% compared to the previous year, primarily driven by post-year-end cash redeployment by corporate and institutional investors.
• Hybrid funds experienced a surge of over 61% to Rs 17,356 crore, while the net AUM of debt funds increased by 11% year-on-year to Rs 18.9 lakh crore as of January 31.

Key Concepts Involved:

• Exchange Traded Fund (ETF): A type of investment fund that is traded on stock exchanges, similar to stocks.
• Mutual Fund (MF): A professionally managed investment fund that pools money from many investors to purchase securities.
• Systematic Investment Plan (SIP): An investment plan where investors make regular, fixed payments into a mutual fund.