Gold Exchange Traded Funds (ETFs) attracted record inflows of ₹8,363 crore in September 2025, according to data from ICRA Analytics, marking a 578% year-on-year surge from ₹1,233 crore in the same month last year.
The strong momentum reflects a significant investor shift toward paper gold, driven by soaring gold prices, geopolitical uncertainty, and expectations of monetary easing. Over the past five years, Gold ETF inflows have grown at a compound annual growth rate (CAGR) of nearly 70%, underscoring rising acceptance of gold as a strategic investment.
Global and Domestic Triggers Fuel Rally
Domestic gold prices breached the ₹1 lakh per 10 grams mark for the first time, triggering heightened investor interest.
Key global and macroeconomic factors contributing to the surge include:
- Escalating geopolitical tensions in Europe and the Middle East
- Record central bank gold purchases, reinforcing confidence in the metal’s long-term value
- Expectations of interest rate cuts, making gold more attractive as yields fall
- Rupee depreciation, which has further lifted domestic gold prices
Seasonal demand also played a role, with Dhanteras and Diwali—traditionally strong periods for gold buying—coinciding with the price rally.
Key Numbers at a Glance
| Metric | September 2025 | September 2024 | Change |
| Net inflows | ₹8,363 crore | ₹1,233 crore | +578% YoY |
| AUM | ₹90,136 crore | ₹39,828 crore | +126% YoY |
| Month-on-month inflows | ₹8,363 crore | ₹2,189 crore (Aug 2025) | +282% MoM |
| 1-year average return | 50.97% | – | |
| 5-year CAGR | 16.93% | – | |
| No. of Gold ETFs | 22 | 18 | 4 new launches in 2025 |
Why Investors Are Turning to Gold ETFs
Gold ETFs have emerged as a preferred alternative to physical gold, offering both safety and convenience.
Major drivers include:
- Safe-haven appeal amid geopolitical risks
- Confidence from central bank buying, supporting gold’s long-term outlook
- Weaker rupee, amplifying domestic returns
- Festive season demand during Dhanteras and Diwali
- Ease and safety, eliminating concerns around purity, theft, or making charges
Unlike physical gold, Gold ETFs are traded on stock exchanges and backed by physical gold stored in vaults, providing investors a transparent and efficient way to gain exposure to the yellow metal’s rally.
Summary
Gold ETFs saw record inflows of ₹8,363 crore in September 2025, propelled by surging gold prices, geopolitical tensions, and a weaker rupee. Total assets under management climbed to ₹90,136 crore, up 126% year-on-year, reflecting the growing investor preference for paper gold over physical holdings. The data underscores gold’s renewed role as a safe-haven and inflation-hedge asset amid uncertain global conditions.
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