Why Asia's Richest Man and BlackRock CEO Want Indians to Invest in Equities
In a recent development, Larry Fink, CEO of BlackRock, and Mukesh Ambani, Chairman of Reliance Industries, are urging Indians to shift their investment focus from gold to the country's equity markets. This advice comes at a critical juncture, as gold prices have been highly volatile, while Indian stocks have underperformed, with the Nifty 50 index down nearly 2% year-to-date.
During a fireside chat, Ambani highlighted the unproductive nature of holding domestic savings in gold and silver, emphasizing the potential for wealth creation 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. Their joint venture, Jio BlackRock Asset Management, introduced its first equity fund in August 2025, amassing assets under management of 31.98 billion rupees ($353 million) by the end of December.
Despite being among the world's leading gold buyers, Indians are increasingly diversifying their savings into mutual funds. This trend is expected to continue, with the Indian mutual fund industry's retail investor-driven assets projected to reach 300 trillion rupees ($3.3 trillion) by 2035, according to Bain & Company.
However, the report by Bain also reveals that Indians still hold a significant portion of their assets in gold and real estate, allocating nearly 59% in the financial year 2025. This compares to 66% in physical assets in the financial year 2015. Fink, during the event, emphasized the importance of Indians investing in their country's growth through capital markets, predicting that the next 20-25 years will be an 'era of India'.
Fink's optimism is backed by the International Monetary Fund's projection that India will remain the world's fastest-growing economy, with a growth rate of 6.4% in 2026. In contrast, the global economy is expected to grow by 3.3%, and major economies like Germany, the U.K., and Japan are likely to experience low single-digit growth. Fink also drew parallels between India's equity market and the U.S., stating that those who invested in America's growth are 'better off' than those who kept their money in bank accounts.
In a separate interview, Fink expressed confidence in the Indian equity market's potential, predicting that it will 'double, triple, and quadruple' over the next two decades. He contrasted this with gold, suggesting that it is unlikely to follow a similar trajectory. Despite foreign investors being net sellers of Indian equities for over a year, rising domestic participation has helped the markets maintain a positive outlook.
The data from the Association of Mutual Funds in India reveals a significant increase in investment through systematic investment plans, which tripled to 2.89 trillion rupees ($31.9 billion) in the financial year 2025 from 2021. 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.
In conclusion, Fink and Ambani's advice to Indians to invest in equities instead of gold is based on a combination of economic projections, market performance, and the potential for wealth creation. As the Indian economy continues to grow, the equity market is expected to offer attractive returns, making it an appealing investment option for those looking to diversify their portfolios.
