Record ETF Investment Surge: Nippon India’s Gold and Silver ETFs Cross ₹1 Lakh Crore Mark
Investment in gold and silver through Exchange Traded Funds (ETFs) has reached a historic milestone in India. Nippon India Mutual Fund’s Gold and Silver ETFs have crossed a combined Assets Under Management (AUM) of ₹1 lakh crore, highlighting a major shift in how investors are approaching precious metals. This achievement reflects the growing preference for transparent, regulated, and market-linked investment instruments over traditional physical assets.
According to data from the National Stock Exchange (NSE), as of January 28, 2026, Nippon India’s Gold ETF managed assets worth ₹55,124 crore, while its Silver ETF held ₹47,392 crore. Together, the total AUM stood at approximately ₹1.02 lakh crore, making Nippon India Mutual Fund the largest manager of precious metals ETFs in the country.
Precious Metals Become a Mainstream Portfolio Choice
This record is not just about size; it also signals that gold and silver have now become mainstream components of Indian investment portfolios. Earlier, precious metals were mainly considered a traditional store of value, usually held in the form of jewellery or physical bars. Over time, ETFs have transformed the way people invest in these assets by offering easier access, better liquidity, and regulatory protection.
Many investors today already hold gold or silver ETFs within their mutual fund portfolios, often without tracking which fund house manages them. The rising AUM shows that ETFs have become a preferred route for both retail and institutional investors seeking exposure to precious metals.
Leadership Among Asset Management Companies
Nippon India Mutual Fund currently leads the precious metals ETF segment in India. It is followed by other major asset management companies such as ICICI Prudential Mutual Fund, HDFC Mutual Fund, and SBI Mutual Fund.
Collectively, the top 10 asset management companies manage around ₹2.76 lakh crore in gold and silver ETFs. This strong concentration of assets underlines investor confidence in these products and the growing maturity of India’s ETF ecosystem.
Why Gold and Silver ETFs Are Gaining Popularity
The increasing investment in gold and silver ETFs reflects a shift in investor behavior toward safer, more transparent, and regulated investment vehicles. Gold ETFs have long been used as a hedge against inflation and market volatility. During times of currency fluctuations, geopolitical uncertainty, or stock market downturns, gold is often viewed as a stable asset that helps protect portfolio value.
Silver ETFs, on the other hand, have gained momentum in recent years due to silver’s dual role as both a precious and an industrial metal. Demand for silver has risen with growth in renewable energy, electric vehicles, and electronics manufacturing. These sectors rely heavily on silver, making it an attractive option for investors seeking higher growth potential.
Shift from Physical Gold to ETFs
Traditionally, owning gold in India meant buying jewellery or physical gold bars. This approach involved challenges such as storage risks, purity concerns, and additional making charges. ETFs have changed this trend by offering a digital, secure, and cost-effective alternative.
With ETFs, investors do not need to worry about safekeeping or quality. Prices are directly linked to market rates, and buying or selling can be done easily through stock exchanges. In addition, ETFs operate within a regulated framework, ensuring transparency and investor protection.
This convenience has encouraged retail investors, high-net-worth individuals (HNIs), and institutional players to gradually move away from physical gold and toward financial gold through ETFs.
Different Roles of Gold and Silver in Portfolios
The distribution within the ₹1 lakh crore figure reveals interesting insights into investor preferences. Gold continues to attract those seeking long-term stability and risk protection, especially during uncertain economic conditions or global crises.
Silver, meanwhile, has witnessed faster growth over the past two years. Its relatively lower price compared to gold makes it more accessible, while its higher volatility appeals to tactical investors looking for short-term opportunities. Many investors now prefer to hold both metals—using gold for stability and silver for potential higher returns.
A Balanced Investment Strategy
Today’s investors are increasingly adopting a balanced approach by including both gold and silver ETFs in their portfolios. Gold provides security and diversification, while silver offers exposure to industrial growth trends. Together, they help create a more resilient investment strategy.
The record-breaking AUM of Nippon India’s gold and silver ETFs demonstrates how financial products linked to precious metals have evolved into a trusted investment option. As awareness grows and digital trading becomes more widespread, ETFs are expected to attract even more participation from Indian investors.
Conclusion
The crossing of ₹1 lakh crore in combined AUM by Nippon India Mutual Fund’s Gold and Silver ETFs marks a significant milestone for India’s investment landscape. It reflects rising investor confidence in ETFs and the growing importance of precious metals as part of diversified portfolios.
With transparency, ease of access, and regulatory backing, gold and silver ETFs are no longer niche products. They have become essential tools for investors seeking stability, inflation protection, and growth opportunities. This trend suggests that precious metals will continue to play a central role in Indian investment strategies in the years ahead.
Disclaimer: This article is for informational purposes only. Investments in the stock market and ETFs are subject to market risks. Investors should consult a financial expert before making any investment decisions.
