Equity schemes can also have gold and silver transactions.

SEBI has allowed equity mutual fund schemes to invest in gold and silver. The money raised in equity-based schemes is allowed to be invested in gold and silver after investing in specified sectors.

In the case of large-cap funds, SEBI mandates that 80% of the money raised should be invested in stocks of the 100 companies with the highest market capitalization. The remaining money will be treated as a reserve in the fund's account. Mid-cap funds, small-cap funds, and sectoral funds all have to comply with SEBI regulations.

As per the data available in January, equity funds in India manage Rs 38.46 lakh crore. With the new decision, a part of that will also go to the bullion market.