Gold ETFs shine amid rising geopolitical tensions and strong gold price rally: ICRA Analytics
Wed Apr 15 2026
Gold ETFs (Exchange Traded
Funds) have witnessed a clear rise in preference among investors, both retail
and institutional, amid heightened geopolitical volatility and sharp
appreciation in gold prices, according to a release by ICRA Analytics.
Total assets under management (AUM) of Gold ETFs registered a five-year CAGR of
64.76% at Rs 1,71,468.4 crore in March 2026, as against Rs 14,122.72 crore in
March 2021. On a year-on-year basis, net AUM has almost doubled, increasing by
nearly 191.18% as compared to Rs 58,887.99 crore in March 2025.
“Gold ETFs have seen a clear
rise in preference during the recent phase of heightened geopolitical
volatility and sharp gold price appreciation, as investors, both retail and
institutional, have actively used them as a defensive and tactical allocation within
portfolios. This preference has been driven by the dual impact of global
uncertainty and strong returns from gold, which reinforced its traditional role
as a safe haven asset,” said Ashwini Kumar, Senior Vice President and Head
Market Data, ICRA Analytics.
There are as many as 26 Gold ETF schemes in the market at present, out of which
six were launched in 2025-26. A quick analysis of the returns generated by the
Gold ETFs suggests that the average 1-year returns across most of these funds
range from around 58.81% to 62.85%, while the 5-year CAGR returns across most
of these funds range from around 25.78% to 26.11%.
“Even during periods of short-term correction, Gold ETFs retained investor relevance. Although inflows moderated sharply in Feb and Mar 2026, due to gold price correction, and temporary easing of global risk aversion, flows remained positive, indicating that investor interest had not structurally reversed,” Kumar said.
|
March |
March 2022 |
March |
March |
March |
March |
|
|
Gold ETFs net AUM (Rs. Crore) |
14,122.72 |
19,280.89 |
22,736.99 |
31,223.69 |
58,887.99 |
1,71,468.4 |
|
Net Inflows (In Rs crore) |
662.45 |
205.15 |
-266.57 |
373.36 |
-77.21 |
2265.68 |
Source: AMFI; MFI360Explorer
Talking about the growing investor preference for Gold ETFs, Kumar said, “Gold
ETFs are better suited for investment, portfolio diversification and tactical
asset allocation, while physical gold is more appropriate for consumption and
long-term holding driven by cultural preference.”
He further said, “For most financial investors, Gold ETFs offer a cleaner, more
efficient and transparent way to gain exposure to gold prices, whereas physical
gold serves non-investment objectives better.”
Top 10 Best-performing funds:
|
Scheme name |
NAV |
Launch date |
1 year |
3 years |
5 years |
|
Axis Gold ETF |
122.0704 |
10-Nov-2010 |
60.3327 |
33.9760 |
26.0264 |
|
ICICI Prudential Gold ETF |
125.3616 |
24-Aug-2010 |
60.6526 |
33.7359 |
26.0792 |
|
Mirae Asset Gold ETF |
142.2772 |
20-Feb-2023 |
60.3259 |
33.6929 |
-- |
|
Kotak Gold ETF |
122.1798 |
27-Jul-2007 |
60.4500 |
33.6328 |
25.9981 |
|
UTI Gold ETF |
122.1682 |
10-Apr-2007 |
61.5975 |
33.5087 |
25.9130 |
|
Quantum Gold Fund - Growth |
121.3113 |
22-Feb-2008 |
60.2381 |
33.4738 |
25.9772 |
|
Invesco India Gold ETF |
12,701.5881 |
12-Mar-2010 |
60.0238 |
33.4500 |
26.0569 |
|
Nippon India ETF Gold BeES |
121.1830 |
08-Mar-2007 |
60.1767 |
33.4050 |
25.7762 |
|
Aditya Birla Sun Life Gold ETF |
128.1922 |
13-May-2011 |
62.8487 |
33.3477 |
25.9337 |
|
HDFC Gold ETF |
124.5900 |
13-Aug-2010 |
62.5867 |
33.3428 |
25.8342 |
Source: MFI360Explorer, As of March 31, 2026