Monday 03 February 2025 11:27 am  |  Updated:  Monday 03 February 2025 11:32 am

Precious metals funds boom as investors seek safe haven assets

By: Elliot Gulliver-Needham

Indian investment funds tanked during January, as gold and Latin America-focused UK funds led the way in the first month of 2025.

47 of the 49 Investment Association sectors delivered a positive return last month, with only India funds (-5.2 per cent) and UK smaller companies funds (-0.9 per cent) losing out, according to data from FE fundinfo.

Indeed, all ten of the worst performing funds in January were focused on India, with the worst, Invesco India Equity, losing 10.6 per cent.

The country has suffered a fall in currency values and the flight of foreign capital, causing its benchmark Nifty 50 to lose over 11 per cent since September.

Meanwhile, gold and Latin American funds dominated the top of the tables, with six of the top ten funds in January focusing on gold and precious metal.

The best, Baker Steel Gold & Precious Metals, rose 17.4 per cent throughout the month, as gold prices rose to new highs over the last month, reaching $2780 (£2258) per ounce for the first time in history.

Meanwhile, two of the best funds were focused on Latin America, with two outliers: Pictet Premium Brands (14 per cent rise) and Pictet Digital (13.8 per cent rise).

As there is not an Investment Association category for precious metal funds, Latin America topped the table, rising 11.4 per cent on average in January.

“The Argentinian bourse hit an all time high on the back of President Milei’s remarkable turnaround of the economy,” noted Ben Yearsley, director of Fairview Investing.

This was followed by Europe ex UK (7.6 per cent), financials (7.4 per cent), healthcare (7.3 per cent) and Europe including UK (7.2 per cent).