Gold ETF assets almost double to Rs 55,677 crore in February
Gold ETFs enable investors to access gold without actually owning it, following the price of gold and trading on stock markets
Mumbai, March 15 – Assets under management (AUM) of Gold Exchange-Traded Funds (ETFs) in India have recorded an impressive increase, rising 95% over the year to ₹55,677 crore in February 2025, as per reports from the Association of Mutual Funds in India (AMFI). This increase indicates an increasing trend for gold as a safe-haven asset with economic uncertainty and market fluctuations.
Gold ETFs, through which investors can monitor gold prices without owning the metal per se, have also gained popularity because of their liquidity, transparency, and convenience of trading. The current geopolitical tensions as well as inflation fears have also pushed investors into gold-backed assets, further cementing the metal‘s role as an effective hedge.
As per the World Gold Council (WGC), much of January‘s high inflows into Gold ETFs were prompted by investors diversifying their portfolios due to uncertainty in global and domestic markets. The 40% increase in gold prices over the last year, with Gold 999 currently at ₹86,140 per 10 grams in Mumbai, has also increased interest in these funds.
Nonetheless, February recorded a marginal fall in net inflows to ₹1,979 crore from ₹3,751 crore in January. Experts attribute this to profit-booking since gold reached a record high, in addition to investors returning focus to equities during market correction.
Silver ETFs too have picked up steam, with AUM crossing ₹13,500 crore as of January 2025, a sign of increased interest in precious metals other than gold.
With India as the second-largest gold consumer globally, market experts foresee Gold ETFs as an important investment option. Will the golden rally last? Keep reading for more news!
