Inflows in gold ETFs decline 7% to Rs 7,743 crore in October. Is investor interest fading?

Wed Nov 12 2025

The inflows in gold ETFs have declined by 7% to Rs 7,743 crore in October after witnessing the highest-ever monthly inflow of Rs 8,363 crore in September, according to the monthly data released by the Association of Mutual Funds in India (AMFI).

Market experts say that sustained momentum highlights investors’ continued preference for gold as a safe-haven and portfolio diversifier.

“Gold ETFs continued to attract steady investor interest in October 2025, with net inflows of Rs 7,743 crore, following record inflows of Rs 8,363 crore in September. The sustained momentum highlights investors’ continued preference for gold as a safe-haven and portfolio diversifier, amid lingering geopolitical risks, global market volatility, and uncertainty around the interest-rate trajectory of major central banks,” Nehal Meshram, Senior Analyst, Morningstar Investment Research India, said.

“While global gold prices remained range-bound through the month, domestic investors maintained allocations, viewing the metal as an effective hedge against both inflation and currency fluctuations. The consistent inflows also suggest that investors are using gold tactically to preserve wealth and diversify exposure, particularly as global bond yields remain elevated and equity markets fluctuate,” Nehal added.

Another expert says healthy inflows show investors' preference for this safe haven and the historical performance delivered last year.

Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), says Gold ETFs continue to see healthy inflows of around Rs 7,000–8,000 crore over the past few months, as investors maintain their allocation to this safe-haven asset and good returns in this category in last one year continue to draw attention.

The inflow in gold ETFs in September is the all-time high level in the category and the highest monthly addition so far in the current fiscal. On a monthly basis, the inflows in gold ETFs witnessed a surge of nearly 282% from Rs 2,189 crore in August to Rs 8,363 crore in September.

In comparison to an inflow of Rs 1,961 crore in October 2024, the inflows witnessed a growth of 295% on a yearly basis.

In the calendar year 2025 so far, the total inflow in gold ETFs has been recorded at Rs 27,572 crore. On the other hand, other ETFs have also managed to gain investor interest in the last few months.

“With cumulative net inflows of Rs 27,573 crore in 2025, Gold ETFs remain among the most resilient segments in the passive space, reaffirming their growing role in portfolio stability and risk mitigation,” Nehal Meshram said.

Other ETFs, which include silver-based ETFs, attracted an inflow of Rs 6,181 crore compared to an inflow of Rs 8,150 crore in September and to Rs 7,244 crore in August.

“Other ETFs have also been seeing good flows in the last couple of months, perhaps with interest and participation increasing in this space,” Suranjana Borthakur said.

The assets under management (AUM) of gold ETFs were recorded at Rs 1.02 lakh crore in October.

"India's Gold ETFs are graduating from tactical trade to strategic allocation. Net inflows accelerated from Rs 2,189.51 crore in August to a record Rs 8,363.13 crore in September, then stayed elevated at Rs 7,743 in October as the corpus crossed the Rs 1 lakh crore mark—evidence of persistence, not a one-off print,” Karthick Jonagadla, investment manager on smallcase, said.

With elevated, repeated inflows, rising share within passive, and a Rs 1 trillion-plus corpus, Gold ETFs in India look firmly embedded as a strategic sleeve in diversified portfolios,” Jonagadla added.

Source: https://economictimes.indiatimes.com/