Gold ETFs See Record $3B Inflows: Why Investors Are Flocking to Safety

With cumulative net inflows of Rs 27,573 crore in 2025, gold ETFs remain among the most resilient segments in the passive space, reaffirming their growing role in portfolio stability and risk mitigation, said Nehal Meshram, Senior Analyst - Manager Research, Morningstar Investment Research India.

The sustained momentum highlights investors' continued preference for gold as a safe-haven and portfolio diversifier, amid lingering geopolitical risks, global market volatility, and uncertainty around the interest-rate trajectory of major central banks.

According to Meshram, while global gold prices remained range-bound through the month, the domestic investors maintained allocations, viewing the metal as an effective hedge against both inflation and currency fluctuations.

The consistent inflows also suggest that investors are using gold tactically to preserve wealth and diversify exposure particularly as global bond yields remain elevated and equity markets fluctuate.

According to Suranjana Borthakur, Head of Distribution and Strategic Alliances, Mirae Asset Investment Managers (India), gold ETFs continue to see healthy inflows of around Rs 7,000-Rs 8,000 crore over the past few months, as investors maintain their allocation to this safe-haven asset and good returns in this category in last one year continues to draw attention.

Other ETFs have also been seeing good flows in the last couple of months, perhaps with interest and participation increasing in this space, said Borthakur.

India's gold ETFs reached a record $3.05 billion in 2025 to date -- the highest-ever for a single year, according to the latest World Gold Council (WGC) data. Continued positive flows for the fifth consecutive month took the assets under management (AUM) to $11.3 billion.

Overall, global gold ETF inflows reached $8.2 billion in October, placing the bullion market set to achieve one of its strongest years on record.

India ranked third globally in ETF inflows during October, following the US with $6.33 billion and China with $4.51 billion. Japan followed India with $499.5 million of inflows, while France recorded $312 million.

- IANS