Gold ETFs Attract Retail Investors: Recorded ₹31,561 Crore Inflows

Gold exchange-traded funds (ETFs) witnessed a remarkable surge in investor interest during the March 2026 quarter, attracting inflows of ₹31,561 crore. This represents nearly a six-fold increase compared to ₹5,654 crore recorded in the same period last year, highlighting a sharp rise in demand for gold-backed investment products.

On a sequential basis, inflows climbed 36% to ₹23,132 crore, indicating that investor participation remained strong throughout the quarter. However, the pace of inflows showed signs of moderation toward the latter part of the period.

Market analysts attribute the continued traction in gold ETFs to their inherent advantages, including high liquidity, transparency, and ease of access compared to physical gold. These features make them an appealing choice for modern investors.

Experts note that gold ETFs serve a dual purpose in portfolios, acting as a tactical hedge during periods of uncertainty while also functioning as a strategic long-term allocation.

Monthly Trend Shows Cooling Momentum

In March alone, gold ETFs saw net inflows of ₹2,266 crore, significantly lower than ₹5,255 crore in February and ₹24,040 crore in January. This slowdown follows an exceptionally robust start to the year, when heightened risk aversion and a rally in gold prices triggered aggressive allocations.

According to data from the Association of Mutual Funds in India (AMFI), despite the easing in monthly inflows, the overall appetite for gold ETFs remained resilient. Persistent macroeconomic uncertainties continued to drive investors toward safe-haven assets like gold.

AUM Sees Sharp Expansion

The sustained inflows pushed the total assets under management (AUM) of gold ETFs to ₹1.71 lakh crore by the end of March 2026. This marks a substantial increase from ₹58,888 crore a year ago, reflecting the growing scale of investments in this category.

Investor engagement also expanded notably during the period. The number of folios rose to 1.24 crore, up from 69.69 lakh a year earlier, signaling a broader shift toward financialised forms of gold investment.

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