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Does 35% gold, silver and InvIT allocation flexibility make equity mutual funds a better buy? Experts explain
Mint 53 min ago·29 Sept 2026, 4:21 pm
The Securities and Exchange Board of India (SEBI) has introduced a new rule allowing equity mutual funds to allocate up to 35% of their portfolio to gold ETFs, silver ETFs, and Infrastructure Investment Trusts (InvITs). This flexibility is designed to help fund managers diversify their investments and manage risk more effectively.
For investors, this change could make equity mutual funds more attractive by offering a built-in hedge against market volatility. Including assets like gold and InvITs can provide stability and potentially improve returns during uncertain market conditions. However, it is important to remember that this is a structural change, not a guarantee of higher performance.
Investors should continue to focus on the fund's long-term track record and the expertise of its fund manager. As this framework rolls out, it will be interesting to see how fund houses utilize this new allowance to optimize their portfolios.
Excerpt from Mint
Under the revised SEBI framework, eligible equity mutual funds can allocate their residual portfolio to assets such as gold ETFs, silver ETFs, and Infrastructure Investment Trusts. In early 2026, the Securities and Exchange Board of India (SEBI) introduced a significant change in the mutual fund framework, giving…Read the original at Mint
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