Indian gold exchange‑traded funds (ETFs) witnessed their first net outflow in over a year in May, while silver ETFs recorded their fourth straight month of redemptions.
Gold ETFs saw an outflow of ₹725 crore in May, a sharp turnaround from April’s inflow of ₹3,040 crore, according to a report by The Economic Times citing data released by the Association of Mutual Funds in India (AMFI).
The last time gold ETFs recorded net outflows was in April 2025, when outflows amounted to ₹5.82 crore.
The change in investor behaviour suggests a cooling in demand for gold as an investment vehicle after a period of sustained inflows earlier this year.
Silver ETFs continued to experience pressure, with a net outflow of ₹2,133 crore in May, considerably higher than April’s outflow of ₹126 crore.
Over the past four months, silver ETF investors have pulled out a cumulative ₹3,770 crore, with May marking the largest monthly outflow in this period.
According to experts, while gold ETFs had strong inflows at the start of 2026 — including ₹24,040 crore in January — the momentum tapered in subsequent months, culminating in the reversal seen in May.
The shift came as profit booking surged following a rally in gold prices, alongside a broader rotation by investors away from traditional safe‑haven assets as risk appetite improved.
Performance data for the month showed that silver ETFs delivered an average return of 9.59% in May, with DSP Silver ETF leading at about 9.72% and Bandhan Silver ETF at around 9.42%. Gold ETFs averaged a 4% return, with Zerodha Gold ETF at the top at 4.07% and The Wealth Company Gold ETF at roughly 3.92%.
The rising opportunity cost of holding gold — in an environment where fixed‑income yields have become more attractive — may have further influenced investor decisions.
The overall pattern of flows indicates that a substantial portion of previous allocations was tactical, reacting to price movements and short‑term macroeconomic cues, according to experts.
As of the latest figures, assets under management (AUM) for gold ETFs stood at ₹1.84 lakh crore, while silver ETFs had an AUM of ₹86,216 crore, reflecting continued investor interest despite the recent outflows.