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Hans India
5 days ago
- Business
- Hans India
Global gold demand surges: India holds 15 pc of $23trillion global gold market now
The global gold market, now valued at approximately $23 trillion, is witnessing a surge in demand as central banks ramp up their purchases in a move to reduce dependence on the US dollar, according to the July 2025 edition of the DSP Mutual Fund's Netra report. In comparison, global foreign exchange reserves stand at around $12.5 trillion. The report notes that even a modest 5 per cent shift of these reserves into gold could trigger a significant and sustained rally in gold prices. India continues to hold a dominant position in the global gold landscape, accounting for 15 per cent of the total gold held worldwide. Of all the gold mined to date, 65 per cent is in the form of jewellery, indicating both the cultural and financial importance of the metal, particularly in countries like India. Central banks have emerged as the primary drivers of the recent gold demand boom. Between 2000 and 2016, total central bank gold purchases amounted to $85 billion. In stark contrast, in 2024 alone, central banks acquired gold worth $84 billion. Since 2022, central banks have been consistently purchasing nearly 1,000 tonnes of gold annually, which represents over a quarter of the annual global mining supply. This shift highlights the growing preference for non-dollar reserve assets amid concerns about the volatility of US Treasury Bonds, which have historically been viewed as safe-haven investments. The Reserve Bank currently holds 880 metric tonnes of gold, according to the latest figures. However, it has refrained from adding to its reserves in FY26, likely anticipating a correction in gold prices, which have risen by over 80 per cent in the past five years. The rally in gold prices has been driven largely by geopolitical uncertainty, trade tensions, and a lack of attractive alternatives to the US dollar as a global reserve currency. The report points out that potential alternatives to the dollar are riddled with limitations. The Euro continues to show structural weaknesses due to fiscal imbalances within the Economic and Monetary Union. The Chinese yuan, though increasingly influential, remains heavily state-controlled and lacks the transparency and global trust required to function as a major reserve currency. Other currencies are simply too small to attract meaningful interest from central banks. Additionally, the report highlights a positive domestic trend in India, noting that strong operating cash flows have resulted in elevated operating cash flow margins. This signals improved capital allocation discipline and corporate governance, strengthening India's economic fundamentals at a time when global financial systems remain under pressure.
Hans India
5 days ago
- Business
- Hans India
15 pc of $23 trillion global gold market now held in India: Report
New Delhi: While global forex reserves total around $12.5 trillion, the gold market is currently valued at $23 trillion, 15 per cent of which is held in India, according to a report released on Monday. Of the total mined gold ever, 65 per cent is in the form of jewellery, and a mere 5 per cent shift of global reserves into gold could trigger a sustained and significant rally in its price, according to the DSP Mutual Fund's July 2025 Netra report. Central bank gold reserves are rising, and they bought more safe-haven assets in the last four years than in the previous 21 years. Central bank gold purchases from 2000 to 2016 totalled $85 billion. But in a single year, 2024, central banks bought gold worth $84 billion. In fact, since 2022, Central banks have bought nearly 1,000 tonnes of the precious metal each year, which is more than a fourth of the annual mining supply of gold, according to the report. This torrent of gold purchases reflects the affinity of most countries to hold non-dollar reserve assets. The volatile nature of the US Treasury Bonds has made gold an even more attractive instrument for Central banks. Demand for gold, therefore, is strong, for now, the report mentioned. In India, the Reserve Bank of India's total gold holdings amount to 880 metric tonnes, according to the latest data. It has not added to its gold stash in FY26 yet, likely waiting for the softening of the safe-haven asset prices that surged more than 80 per cent in five years amid geopolitical and trade uncertainties. Gold has made a new lifetime high in inflation-adjusted terms and is firmly in a bull market. This happened as the alternatives to the US dollar are scarce. 'Euro has repeatedly shown vulnerabilities due to a rugged fiscal make of the Economic and Monetary Union (EMU). The Chinese yuan is far from market-driven or politically palatable enough to be the reserve currency, and most other competitors are now too small to attract reserve asset purchases,' the report mentioned. The report further stated that sustained strength in operating cash flows has resulted in elevated operating cash flow (OCF) margins in India, which is a positive indicator from both a capital allocation and corporate governance standpoint.
Economic Times
6 days ago
- Business
- Economic Times
Nifty50 + Nifty Next50: The no-brainer formula for long-term wealth creation
Synopsis In an exclusive chat, Anil Ghelani of DSP Mutual Fund advocates for simplicity in investing through Nifty 50 and Nifty Next 50 index funds. He explains how passive funds offer low-cost, transparent exposure and suit both SIP and lump-sum strategies. As thematic and sectoral ETFs grow, Ghelani sees a balanced 'core and satellite' approach gaining traction in India. In a market flooded with countless investment options and complex strategies, sometimes the most effective approach is also the simplest. According to Anil Ghelani, CFA and Head of Passive Investments at DSP Mutual Fund, investors looking for long-term wealth creation need only consider a straightforward combination: Nifty 50 and Nifty Next 50 funds. ADVERTISEMENT "These two indices offer a good mix of stability and growth," explains Ghelani, highlighting how the Nifty 50 provides exposure to established sector leaders that have weathered multiple business cycles, while the Nifty Next 50 captures the next generation of potential market leaders across diverse economic sectors. Edited excerpts from a chat: The most important financial goals are usually common — for most of us, they are aligned with the happiness of the family, a better life for children, or starting or expanding a business/profession. Yet, many of us often get preoccupied with the wrong priorities — like increasing the number of funds or chasing the next fancy investment product. Instead, a better approach could be to keep it simple and just aim to achieve our financial goals with a reasonable degree of certainty. So, with that approach in mind, yes — most certainly, passive investing can be considered a very effective solution to the potential confusion created by the growing number of investment products. Passive funds simplify the journey by providing low-cost, transparent, and relatively easy-to-understand exposure to markets, without the human bias of a fund manager. This reduces the need to constantly analyse sectors, stocks, or fund manager performance. So, passive investment funds like ETFs and index funds can offer a simpler and more disciplined approach that helps you stay invested without two indices offer a good mix of stability and growth. The companies in the Nifty 50 Index give exposure to sector-leading firms that have navigated multiple business cycles. On the other hand, companies in the Nifty Next 50 Index, while mainly large-cap stocks, often include the next generation of potential leaders from a wider range of sectors that are key economic drivers. So yes, if you are a long-term investor seeking simplicity and efficiency, I agree with the popular recommendation of combining Nifty 50 and Nifty Next 50. This can form the core of your portfolio, without the need for frequent changes or monitoring. Similarly, we could also consider the BSE Sensex Index and BSE Sensex Next 30 Index. ADVERTISEMENT Yes, awareness of passive funds has surely reached a tipping point in India. But I strongly believe that in decision-making, 'AND' is always more powerful than 'OR.' So why should one be the default? In my view, a better outcome is to have passive funds as part of a core allocation and other products like active funds or AIFs as part of a satellite allocation. You may get better risk-adjusted returns by having a passive core portfolio delivering market returns, and a satellite portfolio attempting to generate excess returns beyond the broader market. SIPs and passive funds are a natural fit. Systematic investing helps manage volatility and builds discipline, while passive funds lower costs and avoid selection bias. That said, lump-sum investments in passive funds are also very useful — especially during market dips or for long-term goals. Another important use case is when you believe a certain market segment or sector is undervalued. For example, if you feel defensive sectors like healthcare or IT are relatively undervalued today and have growth potential, then lump-sum allocations to an index fund or ETF focused on that sector may be a good decision. Yes. When markets fall sharply, ETF volumes on NSE and BSE often spike. This reflects long-term investors finding corrections to be attractive entry points. One of the key advantages of ETFs is that, rather than picking a few stocks which could go right or wrong, you can buy a broad-based ETF and participate in the market's recovery. So, if you're a well-informed investor comfortable trading on the exchange, ETFs can be effective trading tools during short-term dips. ADVERTISEMENT Every afternoon I go to my cafeteria and have the standard thali — simple chapati, sabzi, dal, and chawal. But once a quarter, after our rebalance trades are done, I like to enjoy fancy Italian food with the team — maybe with some dessert too. In my view, it's always good to have options — both in the cafeteria and in investing. As our markets evolve, we'll see more index funds and ETFs that offer exposure to narrow segments, sectors, or niche themes. Many investors will still stick to simple core products, but such thematic products must be available for those who want we'll see both. Certain investors or advisors will want products targeting specific sectors or themes for portfolio allocation. There will also be packaged products for DIY investors. While broad-market funds will continue to dominate AUM, smart beta and sectoral funds will persist — albeit with smaller AUM. To offer context, in the U.S., as of December 2024, smart beta funds comprised about 13% of total equity passive fund AUM. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Time of India
6 days ago
- Business
- Time of India
Nifty50 + Nifty Next50: The no-brainer formula for long-term wealth creation
Tired of too many ads? Remove Ads As the Indian market matures, we are seeing a number of new products, categories, and investment options. But has this created a 'problem of plenty'? Can passive investing help solve this? Tired of too many ads? Remove Ads One common no-brainer strategy is investing in Nifty 50 and Nifty Next 50 ETFs or funds. Is this effective for those looking for simplicity? Are we finally at a tipping point in India where passive investing becomes the default, not the alternative? While SIP is often called the wisest way to invest, is it especially relevant for passive funds? Does lump-sum investing make sense in passives? There have been reports of increased ETF buying during sharp market falls. Can ETFs serve as trading products during such times? We spoke about how passives can simplify investing, but the market is now flooded with thematic indices. How do you see this trend evolving? What's your outlook on new product launches — will we see more thematic or factor-based ETFs, or will broad indices still dominate? In a market flooded with countless investment options and complex strategies, sometimes the most effective approach is also the simplest. According to Anil Ghelani , CFA and Head of Passive Investments at DSP Mutual Fund , investors looking for long-term wealth creation need only consider a straightforward combination: Nifty 50 and Nifty Next 50 funds."These two indices offer a good mix of stability and growth," explains Ghelani, highlighting how the Nifty 50 provides exposure to established sector leaders that have weathered multiple business cycles, while the Nifty Next 50 captures the next generation of potential market leaders across diverse economic most important financial goals are usually common — for most of us, they are aligned with the happiness of the family, a better life for children, or starting or expanding a business/profession. Yet, many of us often get preoccupied with the wrong priorities — like increasing the number of funds or chasing the next fancy investment a better approach could be to keep it simple and just aim to achieve our financial goals with a reasonable degree of certainty. So, with that approach in mind, yes — most certainly, passive investing can be considered a very effective solution to the potential confusion created by the growing number of investment products. Passive funds simplify the journey by providing low-cost, transparent, and relatively easy-to-understand exposure to markets, without the human bias of a fund manager. This reduces the need to constantly analyse sectors, stocks, or fund manager performance. So, passive investment funds like ETFs and index funds can offer a simpler and more disciplined approach that helps you stay invested without two indices offer a good mix of stability and growth. The companies in the Nifty 50 Index give exposure to sector-leading firms that have navigated multiple business cycles. On the other hand, companies in the Nifty Next 50 Index, while mainly large-cap stocks, often include the next generation of potential leaders from a wider range of sectors that are key economic drivers. So yes, if you are a long-term investor seeking simplicity and efficiency, I agree with the popular recommendation of combining Nifty 50 and Nifty Next 50. This can form the core of your portfolio, without the need for frequent changes or monitoring. Similarly, we could also consider the BSE Sensex Index and BSE Sensex Next 30 awareness of passive funds has surely reached a tipping point in India. But I strongly believe that in decision-making, 'AND' is always more powerful than 'OR.' So why should one be the default? In my view, a better outcome is to have passive funds as part of a core allocation and other products like active funds or AIFs as part of a satellite allocation. You may get better risk-adjusted returns by having a passive core portfolio delivering market returns, and a satellite portfolio attempting to generate excess returns beyond the broader and passive funds are a natural fit. Systematic investing helps manage volatility and builds discipline, while passive funds lower costs and avoid selection bias. That said, lump-sum investments in passive funds are also very useful — especially during market dips or for long-term goals. Another important use case is when you believe a certain market segment or sector is undervalued. For example, if you feel defensive sectors like healthcare or IT are relatively undervalued today and have growth potential, then lump-sum allocations to an index fund or ETF focused on that sector may be a good When markets fall sharply, ETF volumes on NSE and BSE often spike. This reflects long-term investors finding corrections to be attractive entry points. One of the key advantages of ETFs is that, rather than picking a few stocks which could go right or wrong, you can buy a broad-based ETF and participate in the market's recovery. So, if you're a well-informed investor comfortable trading on the exchange, ETFs can be effective trading tools during short-term afternoon I go to my cafeteria and have the standard thali — simple chapati, sabzi, dal, and chawal. But once a quarter, after our rebalance trades are done, I like to enjoy fancy Italian food with the team — maybe with some dessert too. In my view, it's always good to have options — both in the cafeteria and in investing. As our markets evolve, we'll see more index funds and ETFs that offer exposure to narrow segments, sectors, or niche themes. Many investors will still stick to simple core products, but such thematic products must be available for those who want we'll see both. Certain investors or advisors will want products targeting specific sectors or themes for portfolio allocation. There will also be packaged products for DIY investors. While broad-market funds will continue to dominate AUM, smart beta and sectoral funds will persist — albeit with smaller AUM. To offer context, in the U.S., as of December 2024, smart beta funds comprised about 13% of total equity passive fund AUM.
Mint
25-06-2025
- Business
- Mint
Expert view: Bullish on Indian stock market for long term despite persisting uncertainty, says DSP MF head of equities
Expert view: Vinit Sambre, the head of equities at DSP Mutual Fund, is positive about the Indian stock market for the medium to long term, expecting healthy corporate earnings. In an interview with Mint, Sambre shared his views on key triggers that will shape the market, outlook for the mid and small-cap segments and sectors he is positive about. Here are edited excerpts of the interview: Macroeconomic indicators are showing signs of improvement, setting a constructive backdrop for the markets. Some key developments include aggressive cuts in interest rates in the last five months, which should support consumption and credit growth, easing inflation, primarily driven by softening food prices, tax relief through higher minimum income slabs, expected to positively impact nearly 20 million taxpayers and boost disposable incomes, a normal monsoon outlook, which bodes well for agricultural output and rural demand and benign commodity prices, helping keep input costs in check. Together, these factors are expected to benefit both the low- and middle-income segments, potentially driving a broad-based consumption recovery. Additionally, corporate earnings should see an uplift not only from this improving macro setup but also due to the low base of FY25, amplifying growth figures. While some earnings volatility may persist over the next quarter or two, the overall outlook for equities remains positive over the medium term. Instead of offering a traditional year-end market outlook, I'd like to approach the question from a different perspective. We must come to terms with the fact that uncertainty is here to stay. Our base case is that the environment will remain volatile, and it will be increasingly difficult to anticipate, calculate, or price in the variety of risks emerging — whether from tariffs, geopolitics, or shifting policy landscapes. In such a world, our focus as portfolio managers is to own businesses that can endure and thrive. Specifically, companies that have built strong, defensible franchises, anchored in competitive moats, and have consistently proven their ability to navigate through economic and industry-level disruptions. After all, markets are simply a reflection of the aggregate health and performance of individual companies. And we see no shortage of companies in India that are steadily building such resilient propositions. That gives us continued conviction in the medium to long-term outlook for Indian equities. As mentioned in the earlier answer, our core assumption is that a combination of supportive factors — including tax benefits, lower interest rates, easing inflation, and a positive agri outlook — will drive a recovery in consumption, which in turn should support corporate earnings growth going forward. However, any risk that challenges this thesis — whether macroeconomic or sector-specific — could make it difficult for current elevated valuations to hold. If companies fail to deliver on growth expectations, market volatility is likely to follow. Mid and small caps have witnessed a meaningful broadening of opportunities over the past few years, driven by the emergence and participation of new sectors such as electronic manufacturing, insurance, quick commerce, platform companies, wires and cables, speciality chemicals, healthcare (hospitals, diagnostic labs), etc. This has expanded the investable universe beyond what is typically available in the large-cap space. This shift has led to greater capital flows into these segments, resulting in elevated valuations. However, in many cases, these valuations appear justified given the stronger growth prospects and structural tailwinds supporting some of these sectors. We believe that mid and small caps offer a compelling long-term opportunity to invest in high-quality businesses that are tapping into underpenetrated and fast-growing segments of the economy. While market volatility may lead to near-term uncertainty, investors with a five to seven-year horizon are well-positioned to benefit from the potential wealth creation these businesses can offer. With the decline in interest rates, we hold a constructive view on several segments of the market. We are particularly positive on consumer discretionary businesses, which are likely to benefit from improved affordability and rising demand. We also see lending institutions — especially NBFCs — as well-positioned to capitalise on lower funding costs and potential credit growth. In addition, speciality chemicals have emerged from a subdued cycle over the past three years and could see a meaningful recovery. Lastly, within the energy sector, we are optimistic about select companies that stand to benefit from the increased capital expenditure linked to the ongoing energy transition. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
