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Gold ETF Inflows Soar 50% to Rs 24,040 Cr, Outpace Equity Funds

Gold exchange-traded funds witnessed a dramatic 50% surge in inflows to approximately Rs 24,040 crore in January, exceeding the inflows into the entire equity mutual fund segment for the month. The mutual fund industry's total flows turned positive at Rs 1.56 lakh crore, primarily driven by strong inflows into debt schemes. Analysts note this highlights the resilience of investor participation and the growing trend of gold being treated as a financial investment asset. Despite market volatility, steady SIP contributions and confidence in India's long-term equity growth prospects supported constructive flows.

Key Points: Gold ETF Inflows Jump 50%, Exceed Equity Funds in Jan: AMFI

  • Gold ETF inflows hit ~Rs 24,040 cr in Jan
  • Equity fund inflows fell 14% to Rs 24,029 cr
  • Total MF industry flows positive at Rs 1.56 lakh cr
  • Debt schemes led with net inflows of Rs 74,827 cr
2 min read

Gold ETFs see steep 50 pc rise at Rs 24,040 crore in India in January: AMFI data

Gold ETF inflows surged to Rs 24,040 crore in January, a 50% rise, surpassing the entire equity mutual fund segment, AMFI data shows.

"Key standout, however, were gold ETFs... pointing to the increasing financialisation of gold as an investment asset. - Varun Gupta"

New Delhi, Feb 10

Gold exchange-traded funds saw a steep 50 per cent rise in India in the month of January, with their monthly inflows exceeding the entire equity mutual fund segment, according to data released by the Association of Mutual Funds in India on Tuesday.

Gold ETF inflows surged to about Rs 24,040 crore in January, more than double the Rs 11,647 crore in December, making gold one of the standout segments for the month.

Meanwhile, equity mutual fund inflows stood at Rs 24,029 crore in January, nearly 14 per cent lower than Rs 28,054 crore in December.

The mutual fund industry saw total flows turn positive at Rs 1.56 lakh crore, led by debt schemes, which recorded net inflows of Rs 74,827 crore, according to the AMFI data.

While Hybrid schemes attracted Rs 17,356 crore, "other schemes", including ETFs, brought in Rs 39,955 crore.

Despite a volatile month for equity markets, mutual fund AUM expanded in January, highlighting the resilience of investor participation, said analysts.

"Key standout, however, were gold ETFs, with AUM rising nearly 50 per cent and monthly inflows exceeding those into the entire equity segment, pointing to the increasing financialisation of gold as an investment asset," said Varun Gupta, CEO, Groww Mutual Fund.

The mutual fund industry returned to positive net inflows, with total flows turning positive at Rs 1.56 lakh crore. This was mainly led by debt schemes, which recorded net inflows of Rs 74,827 crore.

The AUM of open-ended equity-oriented schemes stood at Rs 34.86 lakh crore, while open-ended debt-oriented schemes managed Rs 18.90 lakh crore.

Himanshu Srivastava, Principal Research, Morningstar Investment Research India, said that flows remained constructive despite bouts of market volatility, supported by steady SIP contributions and continued confidence in the long-term structural growth prospects of Indian equities.

The moderation in overall inflows was largely driven by cooling momentum in the mid- and small-cap segments, he mentioned. Large-cap and focused funds also witnessed healthy traction in January, recording higher inflows compared with December.

- IANS

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Reader Comments

P
Priya S
Gold ETFs are so convenient! No need to worry about storage or purity like with physical gold. My parents always bought jewellery, but I'm glad the younger generation is adopting these modern instruments. It's still gold, but smarter 💡.
R
Rohit P
While gold is a safe haven, I hope people aren't abandoning equity SIPs. The article says SIP contributions remain steady, which is good. Long-term wealth in India is still built through equities. Gold should be a part of the portfolio, not the whole portfolio.
S
Sarah B
Interesting data. The fact that gold ETF inflows exceeded the ENTIRE equity segment is staggering. It shows how sentiment can shift so quickly. The "financialisation of gold" point is key - it's becoming a traded asset class like any other.
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Vikram M
This is typical Indian investor psychology. Bhai, market thoda down, toh sab sone ki taraf bhagte hain. But we must remember, gold doesn't give dividends or grow like a business can. It's for security, not high returns.
K
Karthik V
Respectfully, I think the headline is a bit misleading. It focuses on the 50% rise in Gold ETFs, but the real story is the overall positive flow of 1.56 lakh crore and the resilience of the MF industry. That's the bigger, more positive takeaway for the Indian economy.
M

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