- Kotak Mahindra's Nilesh Shah calls for mutual funds to monetize gold and silver assets
- Current gold and silver funds mainly include ETFs and Fund of Funds products
- Gold ETF inflows slowed to Rs 1,559 crore in July, down 55% from June's Rs 3,443 crore
Kotak Mahindra Asset Management MD Nilesh Shah has highlighted the need for mutual fund products that allow investors to tap the value of precious metals such as gold and silver without physically buying or selling the assets, offering greater flexibility.
Speaking at FICCI's Annual Capital Markets Conference 2026 on Wednesday, August 19, Shah said, "We need mutual fund products to monetize gold and silver."
At present, gold and silver mutual fund products primarily include Exchange Traded Funds (ETFs) and Fund of Funds (FoF).
Shah's remarks come as inflows into gold ETFs slowed sharply in the month of July 2026, according to the data released by the Association of Mutual Funds in India (AMFI). Gold ETFs received net inflows of Rs 1,559 crore last month, lower by nearly 55% from Rs 3,443 crore in June.
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AMFI data shows that inflows into Gold ETFs remained positive for a second consecutive month after witnessing net outflows in May. These funds had recorded net outflows of Rs 725 crore in May. Hence, gold ETFs have sustained positive inflows for two consecutive months following single-month profit-booking in May.
In addition to gold and silver mutual fund products, Nilesh Shah recommended to create dedicated fund for retail InvITs. Meanwhile, SEBI's Whole Time Member Amarjeet Singh said, "For launch of dedicated retail invITs funds, we need more liquidity to protect retail investor money."
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