Gold ETFs Witness ₹725.04 Crore Net Outflow in May 2026; Silver ETFs See Massive ₹2,133 Crore Inflow

Gold exchange-traded funds (ETFs) in India recorded a significant net outflow of ₹725.04 crore in May, a stark contrast to the previous month's inflow.   

This development marks a notable change as investors shift focus towards silver ETFs, which saw inflows of ₹2,133 crore in the same period. 

Gold ETFs Witness Notable Outflows 

Data from the Association of Mutual Funds in India (AMFI) reveals that Gold ETFs experienced a net outflow of ₹725.04 crore in May. This is a significant reversal from the ₹3,040 crore inflow logged in April.  

The decline in May is largely attributed to profit booking by investors following a strong rally in gold prices earlier this year, which prompted many to seize gains realised during the price surge. 

Silver ETFs Attract Strong Inflows 

In contrast to gold, silver ETFs attracted strong inflows in May, drawing a total of ₹2,133 crore. The growing interest in silver can be linked to both its industrial applications and its role as an investment as per CNBCTV18 news report.  

This divergence in investor behaviour coincides with fluctuating prices in the broader precious metals market. 

Operational Restrictions by Fund Houses 

Amid these flows, several fund houses have imposed restrictions on large investments in gold investment products.  

For instance, HDFC Mutual Fund has introduced temporary limits on subscriptions to its gold ETF and related schemes.  

Other asset management companies, such as Nippon India Mutual Fund, Tata Mutual Fund, Axis Mutual Fund and Aditya Birla Sun Life Mutual Funds, have followed suit with similar measures.  

These restrictions reflect an evolving landscape in the gold investment domain. 

Read More: $61 Million Exits India Gold ETFs as Investors Capitalise on Gold Rally! 

Year-to-Date Performance 

Despite the record outflow observed in May, the demand for gold ETFs has remained robust on a year-to-date basis.  

Data from the World Gold Council suggests that Indian gold ETFs have generally attracted solid inflows throughout 2026.  

This indicates that recent investor actions may be more about reassessing allocations following a sharp run-up in prices rather than a wholesale move away from gold. 

Conclusion 

The month of May 2026, witnessed a stark contrast in the dynamics of gold and silver ETFs, with gold experiencing outflows and silver seeing robust inflows.  

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