Nippon India Mutual Fund (NIMF) has emerged as a dominant player in the Gold and Silver Exchange Traded Fund (ETF) market during the Diwali 2025 trading period, capturing a significant 53% market share. According to data from the National Stock Exchange (NSE), NIMF's ETFs accounted for 57.6% of the total industry average daily turnover (ADT) in the gold and silver ETF segments between October 17 and 23, 2025.
Gold ETF Performance
The mutual fund industry witnessed a substantial surge in Gold ETF trading volumes during Diwali 2025, with the average daily turnover increasing by 7.9 times year-on-year, from ₹185 crore in Diwali 2024 to ₹1,454 crore in 2025. Nippon India's GoldBeES ETF played a crucial role in this growth, recording an average daily turnover of ₹767 crore during Diwali 2025, a significant increase from ₹97 crore in the same period last year. This impressive performance gave NIMF a 53% market share of the total industry Gold ETF volumes. The fund's ADT was approximately 23 times higher than the industry average (excluding NIMF), highlighting its superior liquidity. The impact cost for Nippon India's GoldBeES stood at a mere 2 basis points (bps), considerably lower than the industry average of 18 bps (excluding Nippon), making it an attractive option for both retail and institutional investors.
Silver ETF Performance
The Silver ETF segment experienced even more remarkable growth, with the industry's average daily turnover surging 14 times, from ₹130 crore in Diwali 2024 to ₹1,823 crore in Diwali 2025. NIMF's SilverBeES ETF made a substantial contribution to this surge, reporting an ADT of ₹1,120 crore, up from ₹84 crore last year, marking a 13.4x increase. As a result, NIMF secured a commanding 61% share of the total industry Silver ETF turnover. The SilverBeES ETF's ADT was over 24 times higher than the industry average (excluding NIMF), further demonstrating its liquidity strength.
NIMF's Dominance and Investor Confidence
Nippon India Mutual Fund's strong performance extends beyond the festive trading period. For the financial year 2024–25, the fund house captured approximately 58% of the industry's total average daily turnover in Gold and Silver ETFs combined. As of September 2025, NIMF boasts India's largest ETF investor base, with 1.53 crore investors, representing nearly half (50%) of the total ETF investors in the country. This strong investor base reflects confidence in the fund house.
A senior spokesperson from Nippon India Mutual Fund emphasized the importance of liquidity in the ETF market, stating that lower impact costs make a significant difference to investors, particularly when entering or exiting large positions. The spokesperson added that NIMF's leadership in the space ensures that investors have access to one of the most efficient ETF platforms in the country.
Market Trends and Expert Opinions
The surge in gold and silver ETF investments during Diwali 2025 aligns with the traditional association of the festival with wealth and prosperity. Gold and silver are considered safe investment avenues, and their prices have seen substantial increases in the past year. However, analysts suggest that after a record-breaking surge, gold and silver prices may experience some consolidation and mild correction as festive demand wanes and profit-booking sets in. Despite potential short-term volatility, the broader trend for precious metals is expected to remain positive due to macroeconomic uncertainty and the appeal of safe-haven assets.
Investment Considerations
While gold and silver ETFs offer a convenient and efficient way to invest in precious metals, experts recommend that investors maintain a balanced portfolio and allocate only 10-15% of their investments to gold and silver. For new investors, it is advisable to gradually increase exposure through Systematic Investment Plans (SIPs) or ETFs, avoiding lump-sum investments due to the inherent volatility of these assets.
