Gold ETF Inflows Triple in December as Investors Rush to Safe-Haven Assets

Gold exchange-traded funds (ETFs) attracted strong investor inflows in December 2025, emerging as one of the top-performing asset classes of the year. Rising gold prices and ongoing global uncertainty pushed investors towards gold as a safe investment option.

According to data from the Association of Mutual Funds in India (AMFI), gold ETFs recorded net inflows of ₹11,646.7 crore in December, more than 3 times the inflows seen in November.

Gold ETF Inflows Jump Both Monthly and Year-on-Year

Gold ETF inflows surged 212% month-on-month, compared to ₹3,741.8 crore in November 2025.

The rise was even more dramatic on a yearly basis. In December 2024, gold ETFs saw inflows of just ₹640 crore. This means inflows increased by over 1,800% year-on-year, highlighting the growing demand for gold during uncertain times.

Assets Under Management Cross ₹1.27 Lakh Crore

Strong inflows and rising gold prices pushed gold ETF assets under management (AUM) to ₹1.27 lakh crore in December 2025. This marks a sharp 187% increase compared to ₹44,596 crore a year ago.

On a monthly basis, AUM also rose nearly 16%, up from ₹1.10 lakh crore in November 2025.

Strong Returns Support Gold ETF Demand

Gold ETFs have delivered strong returns, closely tracking the rally in gold prices. Over the past one year, gold ETFs have generated returns of around 74%, while one-month gains stood at about 6.5%.

Physical gold prices have also risen sharply, gaining roughly 65% over the past year. Weak equity markets and high volatility during 2025 encouraged investors to shift part of their portfolios towards gold.

Key Reasons Behind the Gold ETF Boom

Several global and domestic factors supported the rise in gold ETFs:

• Ongoing geopolitical tensions increased demand for safe assets
• Strong gold purchases by global central banks boosted confidence
• Expectations of US interest rate cuts improved gold’s appeal
• A weaker US dollar supported global gold prices

Together, these factors helped drive both gold prices and ETF inflows higher.

Also Read: Best Gold Mutual Funds in India for Jan 2026!

Risks to Keep in Mind

Despite their strong performance, gold ETFs carry risks. Returns depend entirely on gold price movements, which can fall if global conditions improve. Gold also does not provide regular income and can be volatile in the short term.

Conclusion

The sharp rise in gold ETF inflows in December 2025 shows a clear shift by investors towards safety amid uncertainty. While gold has delivered strong returns, it is best used as a diversification tool rather than a primary investment, keeping long-term goals in focus.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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