Passive Fund Assets Rise 5% to ₹14 Lakh Crore, Driven by Gold ETF Inflows

In October 2025, assets under passive funds experienced a 5.2% rise, reaching ₹13.67 lakh crore. This growth momentum was fuelled primarily by substantial inflows into gold ETFs, reflecting shifting investor preferences amid global uncertainty. 

Gold ETFs Drive Surge in Passive Fund Assets 

Passive fund assets rose by ₹67,000 crore in October, largely due to heightened market valuations and fresh contributions of ₹16,668 crore. Gold ETFs accounted for ₹7,743 crore worth of these inflows, making up 46% of the monthly total.  

Investor interest in gold rose due to safe-haven demand in uncertain global markets, central bank buying activity, and anticipation of interest rate cuts in the US. 

Precious Metals Dominate Passive Fund Landscape 

Gold and silver ETFs together amassed ₹11,155 crore in inflows, capturing over 66% of total passive fund investments. Silver ETFs attracted ₹3,412 crore, driven by diversification strategies among investors. The trend indicates growing demand for precious metals as hedge options and portfolio stabilisers during volatile periods. 

Growth in Hybrid and Equity Fund Segments 

The hybrid fund category saw a moderate 3.6% rise in AUM to ₹10.70 lakh crore, boosted by ₹14,156 crore in net inflows. Arbitrage and multi-asset allocation funds led this trend, helping investors balance exposure across equity, debt, and commodities. During the same month, equity mutual funds posted inflows of ₹24,690 crore, marking the 56th straight month of positive investment. 

Read More: Edelweiss Mutual Fund Files Draft for Gold and Silver ETF FOF! 

Overall Industry AUM and SIP Activity on the Rise 

The mutual fund industry’s total AUM climbed 5.6% to ₹79.88 lakh crore in October, up from ₹75.61 lakh crore in September. Retail participation continued to grow, with 40.81 lakh new folios added during the month. SIP inflows reached a record high of ₹29,529 crore, pushing SIP AUM to ₹16.25 lakh crore, reflecting consistent long-term retail commitment. 

Conclusion 

October 2025 marked another strong month for the mutual fund industry, particularly for passive funds led by gold and silver ETFs. The shift reflects increasing investor appetite for low-cost, transparent investment options with a hedge against market uncertainty. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.