In a definitive signal of the maturing “financialization” of Indian household savings, Nippon Life India Asset Management Limited (NAM India) announced today that the combined Assets Under Management (AUM) of its Gold and Silver Exchange Traded Funds (ETFs) have crossed the historic ₹1 lakh crore (INR 1 Trillion) mark.
This milestone positions Nippon India Mutual Fund (NIMF) as the undisputed market leader in the precious metals segment, commanding a significant lead over its nearest competitors and fundamentally altering the landscape of commodity investing in India.
The Numbers: A “Dual-Engine” Surge
According to data released by the National Stock Exchange (NSE) and the fund house this morning, the aggregate AUM for Nippon India’s precious metal offerings stood at ₹1,02,516.5 crore as of January 28, 2026.
A granular breakdown of the data reveals a striking trend: the rapid convergence of Silver as an asset class rivaling Gold.
- Nippon India ETF Gold BeES: ₹55,124.5 crore
- Nippon India Silver ETF: ₹47,392.0 crore
While Gold BeES has been a legacy product with nearly two decades of trust, the meteoric rise of the Silver ETF—launched only recently in 2022—to nearly ₹48,000 crore highlights a massive shift in investor risk appetite. Indian investors are no longer just seeking safety; they are actively chasing the industrial growth narrative embedded in silver.
To put this dominance in perspective, the top 10 Asset Management Companies (AMCs) in India manage a collective ₹2.76 lakh crore in Gold and Silver ETFs. Nippon India alone accounts for approximately 37% of this entire universe. The gap between the leader and the pack is widening; the second-largest player, ICICI Prudential Mutual Fund, manages ₹48,165.7 crore—less than half of Nippon’s corpus—followed by HDFC Mutual Fund (₹34,075.7 crore) and SBI Mutual Fund (₹33,103.6 crore).
Liquidity as the Ultimate Moat
The surge in AUM is not merely a function of asset price inflation; it is driven by an unparalleled liquidity advantage. On January 21, 2026, the Indian markets witnessed a rare phenomenon: the combined trading volume of Nippon India’s Silver and Gold BeES on the NSE exceeded the trading volume of HDFC Bank, India’s largest private sector lender.
With trading volumes hitting ₹4,784 crore for Silver BeES and ₹3,299 crore for Gold BeES on that single day, these ETFs have transcended their role as passive investment vehicles to become primary liquidity instruments for active traders and institutions.
The “Silver Squeeze” and Volatility: A Strategic Approach
The backdrop to this AUM milestone is the global commodity super-cycle of 2025-2026. Silver prices have rallied aggressively, driven by industrial demand from the solar (photovoltaic) and electric vehicle sectors, coupled with a sixth consecutive year of global supply deficits.
However, the journey has not been without turbulence. Just last week, on January 22, silver ETFs witnessed a “flash crash” of nearly 20% intraday. This volatility was triggered by the unwinding of speculative premiums following rumors of import duty hikes and geopolitical de-escalation regarding US-EU trade tensions over Greenland.
This extreme volatility underscores the importance of choosing the right investment vehicle. While the returns are lucrative—with Silver ETFs delivering over 160% returns in the past year—the disparity in tracking error and liquidity during crash events can be significant between different fund houses.
For investors looking to capitalize on this trend while managing downside risks, understanding the technical nuances of these funds is vital. ( (https://www.google.com) ).
Macro Drivers: Why 2026 is the Year of Bullion
The inflow of capital into Nippon’s funds is also a hedge against a fragile macroeconomic environment.
- Geopolitical Fractures: Persistent tensions in the Middle East and fears of an Iran-Israel escalation have reinstated gold’s status as the ultimate safe-haven asset.
- Currency Depreciation: With the Indian Rupee facing pressure from a strengthening dollar and trade tariff uncertainties under the US administration, domestic gold prices (trading above ₹1.6 lakh per 10g) act as a critical currency hedge for Indian portfolios.
- The “Fear” Trade: The massive volumes in Gold BeES suggest that institutional treasuries are parking surplus cash in gold rather than low-yield liquid funds, anticipating further market corrections.
The Road Ahead
Nippon India’s achievement is a case study in the “winner-takes-most” dynamic of the ETF industry. By establishing the deepest order book early on, they have created a virtuous cycle: high liquidity attracts more institutional flows, which further tightens spreads, attracting even more capital.
As we move further into 2026, the divergence between Gold (Safety) and Silver (Industrial Beta) is expected to grow. Nippon India’s balanced AUM across both metals suggests that the Indian investor has matured, building portfolios that are both defensive and aggressive.
With global analysts projecting Gold to touch ₹1.95 lakh and Silver to breach ₹4 lakh per kg by year-end, the ₹1 lakh crore AUM might just be the opening chapter of a much larger story in India’s financial history.
Key Takeaway for Investors:
- Record Milestone: Nippon India Gold & Silver ETFs cross ₹1 Lakh Crore AUM.
- Market Share: Controls ~37% of the total industry market share.
- Trend: Silver AUM is catching up to Gold, signaling aggressive industrial betting.
- Actionable: Ensure you are invested in ETFs with high liquidity to avoid “impact cost” during market crashes.
Kaashika is a social media strategist and financial content creator at Lakshmishree. She specialises in simplifying complex IPO and stock market concepts into clear, easy-to-understand content. Having created over 500+ pieces of financial content across reels, blogs, website posts and digital creatives, Kaashika helps audiences connect with the world of finance in a more accessible and engaging way.
