Why Asian Billionaire and BlackRock CEO Urge Indians to Invest in Equities Over Gold
In a recent development, Larry Fink, CEO of BlackRock, and Mukesh Ambani, Chairman of Reliance Industries, have advised Indians to shift their investment focus from gold to the country's equity markets. This recommendation comes at a time when gold prices have been highly volatile, while Indian stocks have underperformed, with the Nifty 50 index down nearly 2% year-to-date.
Ambani, during a fireside chat with Fink, highlighted the unproductive nature of holding domestic savings in gold and silver, emphasizing the potential for wealth accumulation through the stock market. This sentiment is further supported by the partnership between Reliance Industries and BlackRock, which launched mutual funds in India last year, with Jio BlackRock Asset Management introducing its first equity fund in August 2025, amassing assets under management of 31.98 billion rupees ($353 million) by December.
Despite being among the world's leading gold buyers, Indians are increasingly diversifying their savings into mutual funds, a trend that Bain & Company predicts will continue. The consultancy firm estimates that retail investor-driven assets in the Indian mutual fund industry will reach 300 trillion rupees ($3.3 trillion) by 2035, up from 45 trillion rupees in the fiscal year 2025. However, Indians still hold the majority of their assets in gold and real estate, with a 59% allocation in the financial year 2025, according to Bain's report.
Fink emphasized the potential for India's growth, stating that the next 20-25 years will be an 'era of India.' He urged Indians to invest in their country's capital markets to capitalize on its projected 6.4% growth rate in 2026, significantly higher than the world's 3.3% growth forecast by the IMF. Fink also drew parallels between India's equity market and the U.S., suggesting that those who invest in America's growth are better off than those who keep their money in bank accounts.
In a separate interview, Fink predicted that the Indian equity market will see substantial growth over the next two decades, potentially doubling, tripling, or quadrupling. This optimism contrasts with gold's perceived lack of growth potential. Despite foreign investors being net sellers of Indian equities for over a year, rising domestic participation has helped maintain positive market sentiment.
Data from the Association of Mutual Funds in India reveals a threefold increase in investment through systematic investment plans, reaching 2.89 trillion rupees ($31.9 billion) in the financial year 2025. While the MSCI India Index's dollar return of 2.61% in the last year is lower than the 43.67% for the MSCI Emerging Markets Index, the India index has delivered nearly twice the returns of the broader emerging market index over the last five years.
