When it comes to investment advice, two powerful figures are making waves: Larry Fink, the Chairman and CEO of BlackRock, and Mukesh Ambani, the Chairman of Reliance Industries. Both are urging Indian investors to consider putting their money into equities rather than traditional gold.
This call for action arrives amid a period of significant fluctuations in the price of gold, while the performance of Indian stocks has been less than stellar, with the Nifty 50 index dipping nearly 2% so far this year. In a recent conversation, Ambani pointed out that a substantial amount of domestic savings tied up in gold and silver is “unproductive.” He emphasized that investments in the stock market have the potential to grow over time, stating that money invested wisely can compound significantly.
Notably, Reliance Industries, the largest conglomerate in India, has partnered with BlackRock, the leading global asset manager, to establish mutual funds in India. Their collaboration led to the launch of Jio BlackRock Asset Management’s first equity fund in August of last year. By December, this fund had accumulated assets totaling 31.98 billion rupees, which is approximately $353 million.
Indians have a strong tradition of investing in gold, consistently ranking among the top buyers worldwide. However, there is an observable trend toward financialization of savings within the nation, as mutual funds are gaining traction among investors. This shift is supported by a report from global consultancy Bain & Company, which forecasts that assets driven by retail investors in Indian mutual funds could soar to 300 trillion rupees, or about $3.3 trillion, by 2035, growing from 45 trillion rupees in fiscal year 2025.
Despite this shift, a significant portion of Indian wealth remains in physical assets, particularly gold and real estate. According to Bain’s findings, nearly 59% of assets were allocated to these categories in fiscal year 2025, down from 66% in fiscal year 2015.
At the event where Fink and Ambani spoke, Fink expressed his belief that the next two to three decades would herald an “era of India.” He urged Indians to invest in their own country’s future through capital markets. The International Monetary Fund (IMF) supports this outlook, projecting India will continue to be the fastest-growing major economy, estimating a growth rate of 6.4% in 2026 compared to a global average of 3.3%. In stark contrast, economies such as Germany, the UK, and Japan are expected to see much slower growth rates.
Fink also shared insights from BlackRock's experiences in the United States, noting that those who invested in the growth of the American economy fared significantly better than individuals who merely stored their money in bank accounts. He confidently predicted that the Indian equity market could potentially double, triple, or even quadruple in value over the next 20 years, asserting that he does not foresee gold appreciating at a similar rate.
Even amidst a trend of foreign investors selling off Indian equities for over a year, an increase in domestic participation has helped keep the markets buoyant. Investment via systematic investment plans—where investors contribute small amounts regularly—has surged, tripling to 2.89 trillion rupees, or $31.9 billion, from 2021 to fiscal year 2025, according to data from the Association of Mutual Funds in India.
In terms of returns, the MSCI India Index has posted a modest dollar return of 2.61% over the last year, which pales in comparison to the impressive 43.67% return of the MSCI Emerging Markets Index. However, over a five-year span, the India index has managed to deliver nearly double the returns of its broader emerging market counterpart.
It's clear that the investment landscape in India is evolving rapidly, and the insights from Fink and Ambani raise critical questions about the future of investment choices for Indians. Are you inclined to follow their advice and shift your investments toward equities? What do you think about the traditional preference for gold? Let us know your thoughts in the comments!
