Gold ETF inflows cross Rs 11,000 crore as investors turn strategic amid continued volatility

As of December 2025, the total AUM of Gold ETFs was at Rs 1,27,896 crore. During the month only two gold ETFs were launched - Bandhan AMC and The Wealth Company - mobilising around Rs 20 crore.

• Gold ETF inflows hit a yearly high in December at Rs 11,646 crore
• Total Gold ETF AUM reached Rs 1,27,896 crore by December 2025
• Investors flock to gold due to global uncertainty and expected monetary easing.

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Gold ETF inflows scaled a yearly high in December, closing the year on a strong note after months of volatility. This trend continues as investors increasingly turned to the yellow metal for stability and long-term portfolio allocation. December posted a sharp rise to Rs 11,646 crore, significantly higher than November’s Rs 3,742 crore. The surge followed steady gains from August (Rs 2,190 crore) and September (Rs 8,363 crore), after gold had struggled in the early part of the year. April and May saw muted activity, before sentiment began to improve from June onwards. October and September saw a shift in momentum, with figures remaining elevated at Rs 7,743.19 crore and Rs 8,363 crore, respectively, before consolidating briefly in November.

As of December 2025, the net AUM of Gold ETFs was at Rs 1,27,896 crore. During the month only two gold ETFs were launched - Bandhan AMC and The Wealth Company - mobilising around Rs 20 crore.

Market experts attribute the renewed interest to a combination of global uncertainty, expectations of monetary easing, and growing institutional participation through exchange-traded funds (ETFs).

“Gold has seen an exceptional year and the net inflows into gold ETFs have gone up four times compared to last year,” said Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India). She added that gold is increasingly being viewed not only as a hedge but as a more strategic and long-term component of investor portfolios.

Most believe the cotinued interest in gold highlights its resilience and evolving role in asset allocation.  Himanshu Srivastava, Principal Research, Morningstar Investment Research India noted that Indian investors have increasingly turned to Gold ETFs as a regulated, liquid, and cost-efficient alternative to physical gold, particularly during periods of volatility across equity and bond markets.

He added that the sharp rise in domestic gold prices over recent months has further reinforced investor confidence in gold-linked products, prompting fresh allocations into ETFs. "These inflows also reflect structural growth in the category, supported by rising folio counts and expanding assets under management as more investors incorporate gold into diversified portfolios to hedge against inflation, currency volatility, and global macro risks." Srivastava added that greater adoption of digital investment platforms and the ease of accessing gold through transparent ETF structures have aided category growth. "Gold’s resilience amid fluctuating real yields and persistent geopolitical tensions, particularly in the Middle East and Eastern Europe, has continued to anchor domestic demand," he said.