One-to-Two Year Investment Plan: Reallocating from Equities to Gold/Silver and Debt—ETF vs FoF Dynamics in India

The 1–2 year playbook buzzing in Indian investing circles is simple: move away from equities toward gold ETFs and silver ETFs. The trigger? posts highlighting rising gold ETFs and silver ETFs, and chatter about a wobble in equity returns ^[1].

In the ETF vs FoF showdown, silver-related FoFs have hit a snag. AMCs such as ICICI Prudential, Kotak, SBI, and UTI have paused fresh subscriptions to the Silver ETF FoF this month, though existing SIPs keep going ^[3].

Meanwhile, investors are seeing momentum in metal ETFs. One post shows gold ETFs up around 18% and urges incremental exposure; others warn against overexposure, favoring diversified, measured bets ^[2].

On the bonds vs mutual funds question, many argue a conservative split—think a 70/30 stocks-to-bonds tilt—with debt funds or short-term bonds for steady income, and caution about default risk in corporate bonds ^[4].

For a 1–2 year horizon, the plan leans into monthly savings into mutual funds, Recurring Deposits (RDs), and short-duration bond options, while keeping doors open for 8+ year strategies via SIPs as discussed by longer-horizon posters ^[5].

This mix—spotting the ETF vs FoF dynamics, keeping exposure to metals measured, and leaning on debt and SIPs—offers a practical template for a short horizon. Keep an eye on how allocations evolve in the coming weeks.

References