28-04-2025
With market volatility, Gujarat investors shift from equity MF to gold
Ahmedabad: Gujarat's famed equity investors, known for their bullish spirit, have been reining in their bets. In the January-March quarter of 2025, mutual fund (MF) assets under management (AUM) in the state shrank by a hefty Rs 35,685 crore, according to the latest data from the Association of Mutual Funds in India (AMFI). The total AUM fell from Rs 4.88 lakh crore in Jan to Rs 4.63 lakh crore by the end of March, with
equity mutual funds
bearing the brunt of the slide.
However,
market volatility
isn't the only reason for the shrinking MF kitty. Investors are considering alternative asset classes, such as gold, to park their funds before markets went from bad to worse. According to Ahmedabad Air Cargo Complex (AACC),
gold imports
in the Jan-March quarter stood at 30.5 metric tonnes (MT) in Gujarat, an increase of 33.75% against the same period in 2024, when 22.84 MT of gold was imported.
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Moreover, in a telling shift,
gold exchange-traded funds
(ETFs) saw net inflows of Rs 146.98 crore during the quarter — a small but clear sign of investors seeking the comfort of a traditional safe haven amid the market squall. According to market experts,
Gujarat investors
still veer towards equity investments, and when it comes to gold, physical bullion is more popular than ETFs.
Against this backdrop, the BSE Sensex dipped only 1.3% in the last quarter of 2024-25.
Putting this in perspective, Jayesh Vithalani, a financial consultant, said, "March always witnesses heavy redemption, but this year, there were two key factors — shifting asset class to gold and tax planning. Given the geopolitical uncertainty, the rise in gold prices over the $3,300 level was anticipated, and many shrewd investors therefore also shifted their asset class to gold to keep their wealth growing. Investors also booked gains to manage their capital gains tax liabilities and even booked losses deliberately to offset earlier gains."
Equity MF AUM alone fell from Rs 3.05 lakh crore to Rs 2.94 lakh crore over the last three months of FY25, as investors scrambled to book gains ahead of the financial year-end.
Moreover, US tariff moves kept the Indian equity markets edgy, impacting fresh inflows and pushing some investors to cut their exposure too, said Vithalani.
While systematic investment plan (SIP) inflows nationwide held up relatively well, Gujarat saw a visible dip in fresh investments. Liquid funds recorded an outflow of Rs 10,509 crore, while debt funds shrank by Rs 4,931 crore as risk aversion spread across segments.
(GFX sent to designers)
Head: MF kitty in Q4 of FY25
Month AUM (₹ lakh cr) Erosion (₹ cr)
Jan 4.88 -11,266.58
Feb 4.76 -11,540.65
Mar 4.63 -12,887.86
Source: Association of Mutual Funds in India
AUM: Asset Under Management
