India’s investment scene has witnessed an astonishing growth in the popularity of ETFs. The most recent data reveal that have hit a record asset under management (AUM) of approximately $10 billion. The heavy inflows into gold ETFs arrived in September 2025 when most investors flocked to gold as a safe-haven asset during market turbulence and a depreciating rupee.
saw increased interest, though some fund houses suspended new investments temporarily in October 2025 as there was a shortage of supply and due to high physical premiums.
Equity mutual fund flows, however, also indicated moderation at the same time. Equity fund inflows in September 2025 fell to around Rs. 30,422 crore, a 9% decline from the previous month. In spite of this slowdown, SIPs remained consistent in terms of taking part of retail investors, indicating that small and frequent investments continue to be favored.
The larger industry of mutual funds in India now oversees total assets valued at around Rs. 75.61 lakh crore, the highest level yet. Passive products like index funds and ETFs played a huge role here, attracting about Rs. 19,056 crore worth of net inflows in September 2025. The spectacular performance of gold and silver ETFs was among the most important drivers behind this number, demonstrating how more investors are turning to ETFs for diversification and safety in their portfolios.