Gold ETF Inflows in India Surge by 99% Year-on-Year in February
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Synopsis
In February, gold Exchange Traded Funds (Gold ETFs) in India saw significant inflows of Rs 1,979.84 crore, marking a 99% increase year-on-year. This trend reflects investors' shift towards gold amid stock market volatility and economic uncertainty, pushing AUM to an unprecedented Rs 55,677.25 crore.
Key Takeaways
- Gold ETFs in India recorded net inflows of Rs 1,979.84 crore in February.
- 10th consecutive month of positive inflows.
- Total AUM for gold ETFs reached Rs 55,677.25 crore.
- Inflows are 99% higher compared to February 2024.
- Global gold ETF inflows amounted to $9.4 billion in February.
New Delhi, March 12 (NationPress) Investors in India have shown remarkable enthusiasm for gold Exchange Traded Funds (Gold ETFs), with a net inflow of Rs 1,979.84 crore documented in February, as per data from the Association of Mutual Funds in India (AMFI) released on Wednesday.
This represents the 10th consecutive month of net inflows into gold ETFs, fueled by fluctuations in the stock market and uncertainty in the global economy.
The increasing gold prices and steady inflows have elevated the total assets under management (AUM) of gold ETFs in India to an unprecedented Rs 55,677.25 crore by the close of February.
In contrast, the AUM was Rs 28,529.88 crore in February 2024 and Rs 51,839.39 crore in January 2025.
Compared to February 2024, when gold ETFs experienced an inflow of Rs 997.22 crore, this year's inflow demonstrates a remarkable 99 per cent increase.
Market analysts link the growing demand for gold ETFs to the ongoing downturn in equity markets and prevailing global uncertainties.
Investors are pivoting towards secure assets such as gold, which has a history of offering stability amidst market declines.
In February, gold prices in India climbed by 4 per cent, enhancing its appeal as an investment choice. Throughout the entire calendar year of 2024, Gold ETFs in India recorded a total net inflow of Rs 11,266.11 crore, a significant rise from Rs 2,923.81 crore in 2023.
On the international stage, gold ETFs experienced robust inflows for the second consecutive month in 2025. According to the World Gold Council (WGC), February witnessed a net inflow of $9.4 billion into gold ETFs globally, marking the highest monthly growth since March 2022.
The total holdings of gold ETFs rose 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 interest in gold has been driven by worries over trade conflicts and a declining US dollar. In February, gold prices increased by 1 per cent in dollar terms and by 4 per cent in Indian rupees.
