This Dhanteras, investors are increasingly turning to digital gold via ETFs instead of traditional jewellery. According to ICRA Analytics, inflows into Gold Exchange Traded Funds (ETFs) surged to ₹8,363 crore in September 2025, up from ₹1,233 crore a year ago — a 578% jump.
Gold ETF inflows have grown at a five-year CAGR of nearly 70%, highlighting a steady shift toward paper gold as a safer, more convenient investment.
Drivers Behind the Surge
- Domestic gold prices have crossed ₹1 lakh per 10 grams, driving demand for gold-linked investments.
- Global factors: Rising geopolitical tensions in Europe and the Middle East.
- Central bank purchases boosting confidence in gold.
- Interest rate expectations: Anticipation of rate cuts fueling safe-haven buying.
- Festive season demand: Dhanteras and Diwali traditionally drive gold purchases.
Key Numbers
| Metric | Value |
| Net inflows | ₹8,363 Cr (Sept 2025) vs ₹1,233 Cr (Sept 2024) |
| AUM | ₹90,136 Cr (up 126% YoY) |
| Month-on-month inflows | Up 282% from ₹2,189 Cr in Aug 2025 |
| Average 1-year return | 50.97% |
| Five-year CAGR | 16.93% |
| Gold ETFs in India | 22 (4 new launches in 2025) |
Why Investors Prefer Gold ETFs
- Safe-haven asset: Protection against global uncertainty.
- Central bank buying: Strengthens confidence in gold.
- Rupee depreciation: Increases domestic gold value.
- Convenience & safety: No purity checks, making charges, or theft risks.
- Tradability: Gold ETFs are like mutual funds but backed by physical gold stored in secure vaults.
This shows a clear shift from physical to digital gold, driven by rising prices, global uncertainty, and investor convenience.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.