Gold and silver ETFs together constitute 71.9% of total passive fund flows of Rs 19,057 crore, highlighting investors’ growing preference for precious metals as a portfolio diversifier amid global market volatility, according to a monthly note by the Association of Mutual Funds in India (AMFI).

The passive fund market witnessed an uptick in September, with AUM rising 3.9% month-on-month to Rs 12.99 lakh crore, driven by a surge in gold prices and fresh inflows into the category, which totaled Rs 19,057 crore, marking the 59th consecutive month of net inflows.

Gold ETFs were the primary beneficiaries, attracting a record Rs 8,363 crore in inflows (forming 43.9% of total passive fund flows), fueled by a weaker local currency and heightened investor demand for safe-haven assets and a hedge against market volatility amid global uncertainties. Silver ETFs attracted inflows worth Rs 5,342 crore, accounting for 28% of total passive category flows.

The hybrid fund category witnessed moderate growth in September, with assets rising 2.5% month-on-month to Rs 10.33 lakh crore, driven by a net inflow of Rs 9,397 crore. Multi-asset allocation funds led the gains, with a 6.3% surge in assets to Rs 1.40 lakh crore, while equity savings funds and balanced hybrid funds saw increases of 4.5% and 2.0%, respectively. Multi-asset funds recorded the highest inflows and strongest asset growth in the hybrid category during the month.