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Gold ETFs Attract Steady Investor Interest Amid Global Uncertainties
10 Sep
Summary
- Gold ETFs see net inflows of ₹2,190 crore in August 2025
- Investors seek gold as a hedge against currency fluctuations and inflation
- Equity mutual funds record 54th consecutive month of positive flows
As of September 10, 2025, gold exchange-traded funds (ETFs) have continued to see steady investor interest, with net inflows of ₹2,190 crore in August. This marks the fourth consecutive month of positive flows into the segment, up from ₹1,256 crore in July.
Analysts attribute this ongoing demand to gold's role as a portfolio diversifier and a tactical hedge amid global macroeconomic uncertainties. Despite elevated gold prices, investors have remained firm in their allocations, driven by safe-haven allocations, persistent geopolitical tensions, and central bank purchases worldwide.
The cumulative investments in Gold ETFs have surpassed ₹5,648 crore in 2025 so far, underscoring their growing importance for domestic investors as a hedge against currency fluctuations and inflation. This trend is part of a broader diversification strategy, with investors allocating across equities, hybrids, and gold depending on their risk appetite and time horizons.
Alongside the gold ETF inflows, the overall equity mutual fund segment has also recorded net inflows of ₹33,417 crore in August, extending its positive streak for the 54th consecutive month. The total assets under management (AUM) stood at ₹75.18 lakh crore in August, compared to ₹75.35 lakh crore in the previous month.
