AMFI Data, April 10 -- Investor preference appears to be shifting away from gold toward equities, with March data showing a sharp moderation in flows into gold-backed investment products even as equity mutual funds saw a surge in inflows.

Gold exchange-traded funds (ETFs) recorded net inflows of Rs.2,265.68 crore in March, sharply lower than Rs.5,254.95 crore in February, marking a decline of about 56.9%. The moderation in flows came as relative valuations turned more favourable for equities compared with gold.

Data from the Association of Mutual Funds in India (AMFI) also showed that silver ETFs continued to see outflows for the second consecutive month, with outflows of Rs.683 crore in March compared to Rs.826 crore in February.

Gold...