'Allocating 5 to 10 per cent of one's portfolio and staying disciplined through market cycles helps in having a positive investment experience.'
The highlight in January, with no surprise, has been flows into gold and silver ETFs.
'Increasingly, they treat gold as a financial asset in their portfolio rather than just as jewellery.'
Domestic gold exchange-traded funds (ETFs) saw their holdings jump 65 per cent to 95 tonnes in 2025, elevating Indian ETFs to sixth place globally, going by holdings of the yellow metal. At the end of 2024, they ranked eighth with 57.5 tonnes of holding, according to an analysis of data from the World Gold Council (WGC).
Gold ETFs attracted around Rs 11,700 crore, the highest in a calendar month.
All investors should ideally have a 10 to 15 per cent allocation to gold. Whether they invest in gold ETFs or SGBs should depend on their investment horizon.
Inflows into gold exchange-traded funds (ETFs), which manage a total of Rs 37,390 crore, have surged sharply in recent months. This trend is likely to continue, especially after the reintroduction of long-term capital gains tax (LTCG), which is likely to attract smart money into mutual fund offerings amid a robust outlook for the yellow metal. Smart money, also known as opportunistic flows, refers to strategic investments that are generally of a short-term horizon.
When we talk about Exchange-Traded Funds (ETFs), a few of their features that strike our mind are their low cost, easy-to-understand composition, and simple trading. While Index ETFs have always been popular among investors, Gold ETFs have garnered interest in recent years due to gold prices fluctuating near their all-time highs. But from a long-term investing context, do these ETFs really deliver?
Net inflows into equity mutual funds (MFs) moderated for the second straight month in September, declining 9 per cent during the month to Rs 30,422 crore. The slowdown came as redemptions from active equity schemes rose 30 per cent month-on-month (M-o-M) to a one-year high of around Rs 36,000 crore.
Gold exchange traded funds (ETFs) witnessed a net outflow of Rs 199 crore in January, making it the third monthly withdrawal in a row, with investors preferring equities over other segments on buoyant record SIP flow. This was in comparison to a net outflow of Rs 273 crore registered in the segment in December and Rs 195 crore in November. Prior to that, Gold ETFs attracted Rs 147 crore in October, data with Association of Mutual Funds in India (Amfi) showed.
The gold and silver holdings of domestic mutual funds (MFs) crossed the Rs 1 trillion mark for the first time in September, powered by a blistering commodity rally that lifted precious metal prices and drew fresh inflows into dedicated MF schemes.
Gold exchange traded funds (ETFs) witnessed a net outflow of Rs 248 crore in February, making it the second consecutive month of withdrawals as investors preferred equities over other segments on record SIP flows. Net outflows from the gold ETFs were at Rs 452 crore in the month of January. Prior to that, the asset class had seen a net investment of Rs 313 crore, according to the data of Association of Mutual Funds in India (Amfi). Despite the outflows, the category witnessed an increase in net assets under management (AUM) of gold ETFs to Rs 18,727 crore at the end of February from Rs 17,839 crore in January-end.
In their short history, Gold ETFs have been quite successful in capturing investors' fancy. It must be noted that while ETFs as investment avenues may not be very popular among investors, it is the Gold ETFs segment wherein the interest is palpable. The fact remains that Gold ETFs are like any other investment avenues and have their fair share of pros and cons. This in turn highlights the need for investors to properly evaluate the Gold ETF option.
Indian retail investors continue to sell gold ETFs.
Passive funds have resumed gaining ground in the mutual fund (MF) industry after a slowdown in 2024, with their share of assets under management (AUM) reaching an all-time high in 2025. The surge has been driven largely by robust inflows into gold and silver exchange-traded funds (ETFs).
Gold burnished its image as the go-to asset class during turbulent times. However, investors seemed to have missed the bus. Net inflows into gold exchange-traded funds (ETFs) plunged to a four-year low of Rs 653 crore in 2022-23 (FY23), even as gold emerged as the top-performing asset class.
Investors pumped Rs 491 crore in gold exchange traded funds (ETFs) in February as they seem be taking advantage of the lower domestic prices caused due to declining international rates, appreciating rupee and reduction in custom duty. This came following a net investment of Rs 625 crore in January and Rs 431 crore in December. Prior to this, gold ETFs had seen an outflow of Rs 141 crore in November, data available with Association of Mutual Funds in India showed.
"We are now looking at a new fund under the gold category, which will enable small investors to subscribe to the units from the offices of UTI, without even having a demat account," said sources at UTI Mutual Fund. "With the equity markets rising by almost 30 per cent between mid-March and April, investors are no longer interested in gold ETFs. Also most Indians prefer holding physical gold, rather than gold ETFs," said a broker.
Though gold ETFs are traded on stock exchanges, they are taxed at a higher rate.
ilver continues to outperform the yellow metal, with the gold-to-silver price ratio declining to its lowest level since 2013. The ratio fell to around 57 on Wednesday in the international market, from a five-year high of 100.8 at the end of April 2025.
'While investing in a silver ETF, one should be aware that it has historically exhibited higher price volatility than gold.'
Gold exchange traded funds are a new product, so investors should look at the cost of investing in them before making a decision.
'We expect modest returns in 2026 versus the steep gains seen over the past few years.'
Data from the Association of Mutual Funds in India show that in 2010-11 till date, gold ETFs have seen net inflows rise by close to four times, to Rs 1,169 crore (Rs 11.69 billion), compared with Rs 312 crore (Rs 3.12 billion) during the same period last year.
'The pace of gold's ascent is striking, with prices rising from $3,500/oz to $4,000/oz in just 36 days -- far quicker than the historical average of 1,036 days taken to achieve similar $500/oz gains.'
During April-July, the investor-base in gold ETFs expanded 24 per cent.
This is the first time Reliance MF has crossed Rs 1,000 crore mark in its ETF in a single day.
Experts attributed the inflows to sudden rally in gold prices, mainly due to uneasy trade negotiations between the US and China and lower than expected global GDP growth.
From Rs 73k to over Rs 1.2L between January-December 2025 -- is buying gold in 2026 still sensible?
Are you debating between buying physical gold and investing in paper gold schemes or ETFs? Anil Rego has the answer
The recent correction suggests that while precious metals hedge geopolitical tension and inflation, they are not immune to sharp short-term corrections and profit-booking.
The Bombay Stock Exchange on Thursday said it will keep a special window open for trading in gold ETFs (exchange traded funds) on 'Akshaya Tritiya' day on May 16.
After touching a high of Rs 32,01/10g in October 2013, gold prices fell to a low of Rs 26,900/10g in June
The Indian metal market is a promising sector to invest in as it provides a good balance between the prospects of growth and stability in dynamic economic conditions and a changing geopolitical environment. Metals such as gold, silver, copper, etc, have gained renewed significance in 2025, amidst growing inflation and India's push towards infrastructural growth and green energy initiatives.
The Indian metal market is a promising sector to invest in as it provides a good balance between the prospects of growth and stability in dynamic economic conditions and a changing geopolitical environment. Metals such as gold, silver, copper, etc, have gained renewed significance in 2025, amidst growing inflation and India's push towards infrastructural growth and green energy initiatives.
Gold prices are likely to trade firm next week as traders await key economic data, including US inflation numbers, for fresh cues on interest rate outlook, while silver may remain volatile amid shifting risk sentiment and speculative activity, analysts said.
Paper gold saves your investments from volatility, and you from hassles that come with the physical form. The chance of good returns gives that extra shine.
According to the latest statistics from the Association of Mutual Funds of India, gold ETFs have lost 18 per cent of their investor base since May.
Last week, gold achieved a new peak at Rs 16,100 per 10 grams, after the precious metal in the overseas markets surged to $1,003 an ounce to a six-month high as a weaker dollar boost its appeal as an alternative investment. With most of the asset classes giving positive returns, investment demand for gold is rising, she said, adding, there has been a net inflow of about Rs 80 crore (Rs 800 million) in the last three months (June-August).
To help mobilise idle gold in households.
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