Synopsis
In FY 2025, Gold ETFs have recorded unprecedented inflows of Rs 14,852 crore, a remarkable increase compared to previous year, indicating a strong investor shift towards safe-haven assets due to global economic uncertainties. The mutual fund industry also showed robust performance with rising retail participation.Key Takeaways
- Gold ETFs saw inflows of Rs 14,852 crore in FY25.
- Investor preference for safe-haven assets grew amid global uncertainty.
- Gold serves as a hedge against market volatility.
- Retail participation in mutual funds increased significantly.
- 30 new open-ended schemes raised Rs 4,085 crore in March.
New Delhi, April 11 (NationPress) Gold Exchange Traded Funds (ETFs) experienced a significant surge in investments during FY 2025, amassing net inflows of Rs 14,852 crore—almost three times the Rs 5,248 crore reported in FY 2024, as per the Association of Mutual Funds in India (AMFI) data released on Friday.
This remarkable increase in inflows highlights the growing inclination of investors towards safe-haven assets amidst ongoing global economic uncertainty, persistent inflation, and rising geopolitical tensions.
As per AMFI, the surge in international gold prices combined with the depreciation of major global currencies against the US dollar has enhanced gold's attractiveness as a portfolio diversifier during the financial year.
The overall trend for FY25 indicates that gold continues to serve as a reliable hedge against market volatility and macroeconomic risks.
With persistent uncertainty surrounding the global economy, experts anticipate that Gold ETFs will remain a vital component of diversified investment portfolios.
Additionally, the mutual fund sector exhibited robust performance in March 2025, with total net Assets Under Management (AUM) reaching Rs 65.74 lakh crore, an increase from Rs 64.53 lakh crore in February.
The average AUM (AAUM) for March stood at Rs 66.70 lakh crore. Retail participation in mutual funds also saw steady growth, with the total number of folios reaching 23.45 crore in March.
Of this, retail investors in equity, hybrid, and solution-oriented schemes accounted for over 18.58 crore folios.
Retail AUM in these categories rose to Rs 38.83 lakh crore, up from Rs 36.44 lakh crore in February.
March 2025 marked the 49th consecutive month of positive equity inflows, a trend commencing in March 2021. Equity-oriented schemes attracted inflows of Rs 25,082 crore during this month.
Systematic Investment Plans (SIPs) continued to gain popularity, with over 40.18 lakh new SIPs registered in March.
The total number of active SIP accounts reached 8.11 crore, contributing Rs 25,925 crore to the mutual fund industry, with SIP AUM hitting Rs 13.35 lakh crore by month-end.
Furthermore, 30 new open-ended schemes were launched in March across diverse categories, collectively raising Rs 4,085 crore, as stated by AMFI.
