INCOME TAX29 Sept 2026
Does 35% gold, silver and InvIT allocation flexibility make equity mutual funds a better buy? Experts explain | Mint
SEBI's revised framework lets eligible equity mutual funds put part of their non-equity money into gold ETFs (exchange-traded funds), silver ETFs and Infrastructure Investment Trusts. A scheme needing 65% equity can use up to 35% elsewhere. Fund managers can shift between asset classes inside the fund, saving you separate transactions. But don't pick a fund only for this. Read its scheme document and monthly fact sheets.
Key Statutory Highlights
- Under the revised SEBI framework, eligible equity mutual funds can use their residual portfolio allocation for gold ETFs, silver ETFs and Infrastructure Investment Trusts, subject to the minimum equity exposure set for each category.
- A scheme with a 65% minimum equity requirement could have up to 35% available for other permitted investments, while a large-cap scheme with an 80% core equity exposure would have a smaller residual allocation.
- Experts say investors should not pick an equity mutual fund just because it can allocate to gold, silver or InvITs, and should instead check the scheme information document and monthly fact sheets for the fund's actual exposure.
Actionable Advice for Taxpayers / Founders:Before investing more, check your fund's scheme information document and latest monthly fact sheet to see whether the manager actually uses this flexibility, and confirm the fund still matches your own risk appetite and time horizon.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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