Gold ETF Inflows Skyrocket by 99% YoY in India – Here’s Why!
Investors in India have shown a growing interest in gold Exchange Traded Funds (Gold ETFs), with a net inflow of Rs 1,979.84 crore recorded in February 2025.
Gold ETF Investments Continue to Rise in India
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Investors in India have shown a growing interest in gold Exchange Traded Funds (Gold ETFs), with a net inflow of Rs 1,979.84 crore recorded in February 2025. According to the latest data from the Association of Mutual Funds in India (AMFI), this marks the 10th consecutive month of positive inflows into gold ETFs.
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Total AUM of Gold ETFs Hits Record High
The rising demand for gold investments has pushed the total assets under management (AUM) of gold ETFs in India to a record Rs 55,677.25 crore by the end of February. This is a significant increase compared to:
- Rs 28,529.88 crore in February 2024
- Rs 51,839.39 crore in January 2025
This 99% year-on-year (YoY) growth highlights the growing preference for gold as a safe-haven asset amid market volatility.
Market Factors Driving the Gold ETF Surge
Market analysts attribute this surge in Gold ETF inflows to several key factors:
- Stock Market Volatility: Uncertainty in equity markets is driving investors towards safer investment options.
- Global Economic Uncertainty: Rising concerns over inflation and global trade tensions are increasing gold’s appeal.
- Surging Gold Prices: In February alone, gold prices in India rose by 4%, further boosting investor confidence.
Yearly Gold ETF Inflows See Major Jump
The trend of increasing investment in gold ETFs is evident from yearly inflow data:
- 2024: Rs 11,266.11 crore inflow
- 2023: Rs 2,923.81 crore inflow
This demonstrates a strong shift in investor sentiment towards gold as a stable investment.
Global Gold ETF Market Witnesses Strong Growth
The global gold ETF market has also seen significant momentum. According to the World Gold Council (WGC), February 2025 witnessed a net inflow of $9.4 billion into gold ETFs, marking the highest monthly increase since March 2022.
Additionally, the total global holdings of gold ETFs increased by 99.9 tonnes, taking the total global AUM to a record $306 billion.
Gold Prices Continue Upward Trend
Gold prices have been on an upward trajectory both in India and globally:
- In India: A 4% increase in February
- In Global Markets: A 1% rise in dollar terms
The weakening US dollar and increasing economic uncertainties are fueling this price rally.
