Silver ETFs have surged up to 188% over the past year on strong industrial demand and supply constraints. While experts remain constructive on the long term outlook, they advise profit booking, portfolio rebalancing and staggered investments amid elevated volatility.

Mutual funds raised their cash holdings by ₹5,913 crore in December to ₹2.07 lakh crore, increasing cash levels to 4.81% of AUM from 4.68% in November. Meanwhile, total equity AUM rose modestly by ₹11,000 crore month-on-month to ₹43.25 lakh crore.

Investor interest in sectoral and thematic mutual funds saw a significant drop in December. Monthly inflows fell by 49% as many funds failed to beat their benchmarks. Experts attribute this to the cyclical nature of these funds and investors reacting to underperformance. This trend reflects a cautious approach to concentrated strategies, with a shift towards alternative assets like precious metals.

Multi-asset allocation funds, heavily weighted towards gold and silver, witnessed a significant 40% surge in December inflows. This rise suggests a growing investor preference for diversified, defensive strategies, driven by recent performance and a potential increase in risk aversion.

Flexicap mutual funds saw record inflows of over Rs 10,000 crore in December. This surge highlights investor confidence in the category's flexibility and consistent performance. Experts advise sticking to long-term asset allocation rather than chasing trends. Flexicap funds are recommended as core holdings for investors, especially first-time equity investors, best accessed through SIPs.

JioBlackRock Flexi Cap Fund raised exposure to Adani Energy, HAL and several largecap stocks in December while trimming holdings in IndiGo and others. The fund also exited multiple stocks, added new names and saw a rise in assets under management.

Parag Parikh Flexi Cap Fund boosted its holdings in ITC and ten other stocks during December, notably adding significant stakes in Power Grid Corporation and HDFC Bank. The fund also introduced The Great Eastern Shipping Company to its portfolio. Meanwhile, exposure to Infosys was reduced, with no complete exits reported.