Gold ETF inflows soar 578% YoY in September: Investors flock to yellow metal amid geopolitical tensions; will this trend continue?
Over the past five years, Gold ETF inflows have grown at a CAGR of 69.53%, up from Rs 597.26 crore in September 2020, according to ICRA Analytics, reported ET.“Gold prices have breached Rs 1 lakh per 10 grams, while central bank buys, ongoing geopolitical tensions, and expectations of US rate cuts have reinforced gold’s appeal as a safe-haven.
Investors are increasingly turning to Gold ETFs for liquidity, transparency, and alignment with global prices, without the risks of storage or purity concerns,” said Ashwini Kumar, Senior Vice President and Head, Market Data, ICRA Analytics.Month-on-month inflows also surged nearly 282%, from Rs 2,189.51 crore in August 2025.
The net AUM of Gold ETFs grew 126.34% year-on-year to Rs 90,135.98 crore in September 2025, while month-on-month AUM increased 24.33% from Rs 72,495.60 crore in August. “The current market outlook, combined with global uncertainties, has strengthened gold’s position as a reliable portfolio hedge.
ETFs are attractive for investors seeking cost-effective, tax-efficient, and easily tradable gold exposure.
While returns have been strong, strategic entry at the right time can maximise gains.” Kumar explained, quoted ET.
Currently, there are 22 Gold ETFs in India, including four launched in 2025.
Over the past year, these funds delivered an average return of 50.97%, while three-year and five-year returns averaged 30.36% and 16.93%, respectively.
Top performers over five years include LIC MF Gold ETF (17.23%), Quantum Gold Fund (17.09%), Invesco India Gold ETF (17%), Axis Gold ETF (16.97%), and ICICI Prudential Gold ETF (16.95%).“Gold demand is being driven not just by domestic investors, but also by global buying and heightened geopolitical risks.
ETFs are capturing this momentum, offering an alternative to physical gold.
We expect this trend to continue in the near to mid-term, though investors should remain mindful of potential volatility and high valuations,” Kumar added.
