Index Fund Corner
Sponsored
| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
The decline was primarily due to profit booking as gold prices surged to an all-time high last month.
Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India, noted that many investors locked in gains, leading to lower fresh allocations.
“Equity market corrections also presented attractive buying opportunities, prompting some investors to shift focus from gold ETFs to equities,” she said.
The anticipation of interest rate cuts by global central banks has further reduced the urgency for safe-haven investments like gold.
Despite the slowdown, Meshram emphasised that gold remains an essential portfolio diversifier.
“With global economic uncertainty persisting, gold will continue to serve as a hedge against market instability,” she added.
Ajay Garg, CEO, SMC Global Securities, highlighted that while inflows declined, the average assets under management (AAUM) for Gold ETFs grew by 15% to ₹55,001.75 crore.
The broader mutual fund industry saw mixed investor sentiment in February.
Equity mutual funds registered 26% drop from January, reflecting cautious investor behavior amid global uncertainties.
The number of mutual fund schemes rose to 1,739, with 28 new launches during the month.
Investor outlook
Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), stated that despite the fall in inflows, gold ETFs remain a preferred investment during volatile times.
“Gold’s safe-haven appeal continues to attract investors, even though other asset classes offer compelling opportunities,” she said.
First Published: Mar 12, 2025 4:50 PM IST
