Mumbai, October 6, 2026: Emkay Global Financial Services reported that assets under management (AUM) in multi-asset allocation funds in India crossed ₹2.07 lakh crore as of August 2026, reflecting a nearly 57% year-on-year increase, amid a broader shift in investor portfolio strategies. The data was presented at Emkay’s inaugural Exclusive Commodities Conference, ‘Mining for Alpha: Strategic Commodities in Institutional Portfolios’, held on September 29, 2026 at Sofitel Mumbai BKC.
The conference brought together stakeholders from commodities, treasury, and investment sectors to discuss the evolving role of commodities in institutional portfolios. Participants noted that commodities are increasingly being viewed not only as a hedge but as a key component of asset allocation, diversification, liquidity, and risk management strategies.
Gold ETF assets and changing investor behaviour
Gold exchange-traded funds (ETFs) in India saw assets rise from approximately ₹72,500 crore in August 2025 to ₹1.91 lakh crore in August 2026, an increase of about 164%. Silver ETFs accounted for an additional ₹85,000–86,000 crore. The trend indicates a shift in how Indian investors access precious metals, with gold gaining prominence in financial portfolios beyond its traditional role in jewellery and physical savings.
Rahul Rege, CEO – Broking, Emkay Global Financial Services, said the opportunity in commodities now extends beyond trading to encompass allocation, diversification, and risk management. He noted that broking firms are evolving from execution to becoming multi-asset advisors and risk-management partners as commodity markets deepen and institutional participation grows.
Structural demand for industrial metals
The conference also highlighted the growing financialisation of gold, the expansion of the commodity derivatives market, and structural demand for industrial metals such as copper and aluminium. Copper demand, driven by electrification, is projected to nearly double to 15.5 million tonnes. Data presented at the event showed copper led six non-ferrous metals in annualised return from 2022 to September 2026, with the lowest volatility and a high Sharpe ratio.
Aurobinda Gayan, Founder & CEO of Bluglance Consulting Private Ltd, described copper as “the next gold,” citing its strong risk-adjusted performance and noting that institutions must consider factors such as carry costs, market structure, and supply constraints.
Commodity derivatives market and regulatory changes
India’s commodity derivatives market continued to expand, with average daily futures and options turnover on MCX reaching about ₹5.4 lakh crore in FY2025-26. Nearly 20.9 lakh clients traded futures and options during the year. Gold and silver accounted for approximately 43% and 34% of futures turnover respectively in Q4 FY2025-26. The National Stock Exchange (NSE) also reported growth in crude oil and natural gas volumes and is focusing on electronic gold receipts (EGRs).
The Securities and Exchange Board of India (SEBI) recently widened foreign portfolio investor (FPI) participation in non-agricultural commodity derivatives, allowing access to non-agricultural commodity index derivatives and non-cash-settled non-agricultural commodity derivatives, subject to delivery and position management safeguards. This move is expected to boost institutional participation and liquidity in the domestic commodity derivatives market.
Gold’s evolving role in portfolios
Sheela Kulkarni, Head of Market Development, Investments and Institutional Investor Relationships, India, World Gold Council, emphasised gold’s strategic role in portfolio diversification, liquidity, and returns. She noted that 2025 was a strong year for gold, which delivered over 60% returns across most currencies and recorded 11 new highs in the first two months of 2026. She also highlighted changing consumption patterns, with jewellery accounting for a smaller share and younger consumers favouring lighter jewellery and experiences.
Kulkarni pointed out that emerging-market central banks hold about 15% of reserves in gold, compared to 30% for developed markets, with the Reserve Bank of India purchasing around 75 tonnes in 2024, making it the third-largest central-bank buyer that year.
Broader trends in commodities and asset allocation
Multi-asset allocation funds have recorded 60 consecutive months of positive flows. While these funds are not exclusively commodity-focused, the trend reflects a shift from investing in individual securities to building diversified portfolios that can navigate various economic conditions. Conference speakers also noted the increasing use of relative-value, spread, and arbitrage strategies, such as calendar spreads, to capture opportunities in commodity markets as they mature.
Emkay Global Financial Services is a financial services firm headquartered in Mumbai, focusing on broking, investment advisory, and asset management.
Disclaimer: This article is based on a press release provided by the concerned organisation and has been edited for style and clarity with the assistance of AI tools. BusinessFortnight does not verify, endorse, or take responsibility for the claims, figures, or statements made in the original release.
