International gold prices rose 6.6% to $1,921 an ounce on March 21, 2022. According to Association of Mutual Funds of India (AMFI) data, in the two months since the start of 2022, over Rs 700 crore worth of schemes have been shifted from conventional mutual fund gold ETFs to Saver’s gold bond schemes.
Apart from this, the schemes have continuously generated income of Rs.1769 crore from investments in gold ETFs in the last 5 months.
What do mutual fund advisors say?
Silver is just as beneficial as any other material. At the same time, it should be remembered that silver is coming off a decade-long consolidation phase.
If this inflation continues, both silver and gold may continue to perform well as hedges against inflation, says Sindan Haria, head of product and strategy at ICICI Prudential Mutual Fund.
However mutual fund advisors believe that silver has not proven to consistently provide a good return to mutual fund investors.
Advisors therefore advise investors to exercise caution as investments in silver are only made through ETFs and FOFs, unlike gold funds.
Mutual fund advisors also advise investing in ETF mutual funds for more discerning and sophisticated investors.
Disclaimer: Mutual fund schemes are subject to market risks. Consult your advisor before investing and invest at your own discretion.