Gold ETF inflows jump 100% to ₹24,040 crore in January
What's the story
India's gold exchange-traded funds (ETFs) witnessed a historic surge in investor interest in January. The funds attracted ₹24,039.96 crore in net inflows, nearly double the ₹11,647 crore recorded in December. The spike is one of the sharpest month-on-month increases ever seen for this category and has brought gold ETF inflows on par with equity fund flows for the first time.
Investment shift
Broader trend in ETF investments
The latest data from the Association of Mutual Funds in India (AMFI) shows that gold ETFs are no longer just a hedge but have become a mainstream portfolio allocation. Other ETFs, which usually include silver and thematic products, also saw rising participation with ₹15,006 crore in January against ₹13,199 crore in December.
Market alignment
Global momentum
The domestic trend of rising gold ETF inflows mirrors global momentum. Data from the World Gold Council (WGC) shows that January's inflows alone accounted for 12.5% of total gold ETF assets under management in India. This highlights how concentrated buying was in a single month and further emphasizes the growing popularity of these funds among investors.
Market analysis
Factors behind the surge
Market observers attribute the surge in gold ETF inflows to a combination of price correction and macroeconomic uncertainty. Rochan Pattnayak, Chief Investment Officer at Choice AMC, said that gold-linked ETFs witnessed a near-term pullback after strong gains in 2025 and early 2026. The price drop was mainly due to profit-taking and expectations that the US Federal Reserve may pause further rate cuts.
Investment advice
Long-term view on gold
Despite the short-term volatility, Pattnayak emphasized that "gold's long-term relevance remains intact," citing limited supply growth, persistent geopolitical risks, and steady central bank demand as key structural supports. He advised investors to maintain a disciplined exposure of around 10-15% of a diversified portfolio depending on their risk profile. He also predicted that with investment demand strengthening and supply response still muted, gold prices are likely to remain well supported unless financial flows reverse sharply.