Gold ETF inflows increase 100% to Rs 24,040 crore in January 2026, on par with equity

Market experts attribute the rising trend in gold ETF inflows over recent months to global economic uncertainty, expectations of monetary policy easing, and persistent geopolitical risks.

• Gold ETFs saw Rs 24,039.96 crore inflows in January 2026, up 106% from December
• Investor shift to gold ETFs driven by global uncertainty and geopolitical risks
• Total ETF and overseas fund inflows reached Rs 39,954.63 crore in January 2026

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Gold-focused exchange-traded funds (ETFs) recorded a strong surge in investor inflows in January 2026, extending a momentum that began building in the final quarter of last year as investors increasingly sought safety amid uncertain market conditions.

Gold ETFs attracted Rs 24,039.96 crore in January, more than doubling from Rs 11,646.74 crore in December 2025, representing a 106% month-on-month rise. The January figure stands out as the highest monthly inflow in recent months. With this rise, they are almost on par with equity flows for the month of Rs  24,029.

On the increase in Gold ETF inflows, Nehal Meshram, Senior Analyst, Morningstar Investment Research India noted that the surge suggests gold demand remained exceptionally strong, supported by continued investor preference for safe-haven and diversification exposure. "Part of the strength likely reflects fresh allocations at the start of the year, as investors rebalance portfolios and add hedges after a volatile period across risk assets. Gold ETFs continue to benefit from their positioning as a regulated, liquid, and cost-efficient way to hold gold versus physical formats, making them an easy “add-on” allocation during uncertain macro phases," she said.

After remaining moderate through much of the year, inflows into gold ETFs began picking up towards the end of 2025. Inflows rose to Rs 7,700 crore in October, softened to Rs 3,741.79 crore in November, before rebounding  in December. The sustained increase over the past two months suggests a clear shift in investor allocation strategies in favour of gold beyond multi asset funds. On the other hand, index funds saw negligible inflows of Rs 23 crore in January 2026.

The strong performance of gold ETFs helped push total net inflows across ETFs and overseas-oriented fund categories to Rs 39,954.63 crore in January, up from Rs 26,723.24 crore in December. Other ETFs continued to attract steady interest, while funds of funds investing overseas saw stable but modest inflows, indicating that investors are selectively increasing exposure rather than broadly chasing risk. "The persistence of strong flows also indicates that gold’s role is becoming more structural in Indian portfolios. With investors still mindful of inflation risks, currency volatility, and global geopolitical uncertainty, allocations to gold-linked products have remained steady, and January’s spike reinforces the category’s growing appeal as a portfolio stabiliser," Meshram said.

Market experts attribute the rising trend in gold ETF inflows over recent months to global economic uncertainty, expectations of monetary policy easing, and persistent geopolitical risks. But A Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC added, "The recent rise in gold and silver has led to a sharp increase in demand for gold & silver ETFs as investors look for different avenues to gain exposure to precious metals. However, equities continue to remain the preferred asset class for investment from a long-term wealth creation point of view."  Similarly, Vikas Gupta of Omniscience Capital added, "Investors continued allocating to Gold ETFs at significantly elevated gold prices which might turn out to be a mistake in the long-term."

During the month, silver ETFs saw an inflow of around 9,463.4 crores, taking the AUM to Rs 1.16 lakh crore.