Business

Gold ETF inflows in India soar 99 pc YoY in Feb

March 12, 2025

New Delhi, March 12

Investors in India continued to show strong interest in gold Exchange Traded Funds (Gold ETFs), with a net inflow of Rs 1,979.84 crore recorded in February, according to data from the Association of Mutual Funds in India (AMFI) on Wednesday.

This marks the 10th consecutive month of net inflows into gold ETFs, driven by stock market volatility and global economic uncertainty.

The rising gold prices and consistent inflows pushed the total assets under management (AUM) of gold ETFs in India to a record Rs 55,677.25 crore by the end of February.

In comparison, the AUM stood at Rs 28,529.88 crore in February 2024 and Rs 51,839.39 crore in January 2025.

Compared to February 2024, when gold ETFs saw an inflow of Rs 997.22 crore, this year’s inflow is 99 per cent higher.

Market analysts attribute the rising demand for gold ETFs to the ongoing decline in equity markets and global uncertainty.

Investors are shifting towards safe-haven assets like gold, which has historically provided stability during market downturns.

In February, gold prices in India surged by 4 per cent, making it a more attractive investment option. For the entire calendar year 2024, Gold ETFs in India recorded a total net inflow of Rs 11,266.11 crore, a significant jump from Rs 2,923.81 crore in 2023.

On the global front, gold ETFs witnessed strong inflows for the second consecutive month in 2025. According to the World Gold Council (WGC), February saw a net inflow of $9.4 billion into gold ETFs worldwide, marking the highest monthly increase since March 2022.

The total holdings of gold ETFs increased by 99.9 tonnes, bringing the global AUM of gold ETFs to a record $306 billion by the end of February.

The surge in global investment demand for gold has been fuelled by concerns over trade tensions and a weakening US dollar. In February, gold prices rose by 1 per cent in dollar terms and by 4 per cent in Indian rupees.

 

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