Editor’s Note
This article highlights a notable shift in investor preferences within the mutual fund market, moving from traditional equity funds toward alternatives like Gold-Silver ETFs, Multi-Asset Funds, and Liquid Funds. This trend reflects evolving strategies in response to current market conditions.
A significant change is visible in the mutual fund market. Investors are now preferring Gold-Silver ETFs and Multi-Asset Funds over equity. Retail participation in Liquid Funds has also increased rapidly.
Amidst the ongoing market volatility, the perspective of mutual fund investors is changing. Investors, who have so far relied on the stock market, are now showing confidence in other options. In the year 2025, investment in schemes like Gold, Silver, and Multi-Asset has increased significantly. This shift is helping investors achieve safer and better returns.
Equity funds have long ruled the mutual fund industry. According to data, nearly 80% of mutual fund accounts are linked to equity schemes. Meanwhile, 90% of individual investors’ wealth is also invested in active equity funds. However, this trend is now changing. In January 2025, the share of active equity in the total portfolio was 69%. By October 2025, it has decreased to 67%.
When the stock market declined, the surge in gold and silver prices attracted investors. In the month of October, nearly 20 lakh new accounts were opened in Gold and Silver ETFs. This figure is 30% higher than the new accounts added in active equity funds. Market volatility has made these commodity-based schemes the first choice for investors.
To avoid market ups and downs, investors have turned to Multi-Asset Funds. This year, more than ₹34,300 crore has been invested in the hybrid mutual fund category. These funds reduce risk by investing money in different asset classes. Additionally, 4.28 lakh new accounts have been added to Liquid Funds. People are now using Liquid Funds as an alternative to savings accounts.
Also, with Real Estate Investment Trusts (REITs) now being granted equity status, investment in them is also expected to increase. In the coming times, new products will further expand the market’s scope.
Specialized Investment Funds (SIFs) may soon establish their place in the market. These funds will fulfill needs that are not met by existing schemes. Due to their high return potential, these funds could attract investors who currently use Portfolio Management Services (PMS). This new category will further expand the scope of mutual funds.