Silver funds see meteoric rise-AUM surges over 200% in 10 months

view original post
From surging assets under management (AUM) to stellar returns, silver is quickly becoming the go-to investment for those seeking more lucrative options in the metals market. In January 2024, the total AUM of silver funds stood at ₹4,890 crores. By October, this figure had soared to ₹14,969 crores, marking an astonishing growth of over 200% in just 10 months.

When it comes to silver’s performance, the price action has been equally impressive. On May 14, 2024, silver was priced at ₹86,000 per kg. Fast forward to October 23, and the metal had risen to ₹1,04,000, a solid 20.93% increase. While silver showed some volatility, dipping to ₹93,000 per kg by November 11 (a 10.58% drop from its peak), the overall trajectory remains positive. Despite the fluctuations, silver’s rally in 2024 has outpaced gold, catching the attention of investors eager to capitalise on stronger returns.

Silver mutual funds have also emerged as a star performer. Over the last three months, these funds have delivered a return of 12.41%, outpacing both gold and international equity funds. But it’s over the past year that silver mutual funds have really shone, with returns of more than 26%, making them the strongest category in the mutual fund space. With their remarkable performance, silver funds have become a popular tool for diversifying investment portfolios.

However, investors should be mindful of the inherent volatility in silver prices. While the gains have been impressive, the sharp fluctuations in price highlight the risks involved, making it essential for investors to be prepared for potential swings in value.

Loading…