Gold exchange-traded funds in India saw strong investor demand in December 2025, with inflows rising 211% to ₹11,647 crore amid a rally in gold prices and heightened safe-haven buying.
Inflows into gold exchange-traded funds (ETFs) in India recorded a sharp rise in December 2025, driven by a rally in gold prices and heightened safe-haven demand amid global economic uncertainty. According to data from the Association of Mutual Funds in India (AMFI), gold ETF inflows rose 211 per cent month-on-month to Rs 11,647 crore in December, compared with Rs 3,741.79 crore in November.
The significant inflow lifted the assets under management (AUM) of gold ETFs by nearly 16 per cent month-on-month to Rs 1.28 lakh crore. Investors increasingly preferred gold ETFs as a regulated, liquid and cost-efficient alternative to physical gold, particularly as volatility persisted across equity and debt markets. Rising folio numbers and expanding AUM indicated continued structural growth in the segment.
Digital investment platforms and easier access to gold through transparent ETF structures further supported investor participation. In December 2025, gold ETFs delivered an average return of 2.96 per cent, with Tata Gold ETF recording the highest monthly return of 3.71 per cent.
Meanwhile, equity mutual fund inflows moderated during the month. Inflows into equity-oriented schemes declined 6.2 per cent to Rs 28,054.06 crore from Rs 29,911.05 crore in November. Small-cap inflows fell 13 per cent to Rs 3,823.82 crore, while mid-cap and large-cap categories recorded declines of 7 per cent and 4.4 per cent, respectively. Flexi-cap funds continued to witness strong demand, attracting nearly Rs 10,000 crore in December.
Debt mutual fund categories reported significant outflows amounting to Rs 1.32 lakh crore, led by liquid fund outflows of Rs 47,307.9 crore and money market withdrawals of Rs 40,464.36 crore. Hybrid fund inflows dropped to Rs 10,755.57 crore from Rs 13,299.2 crore in November.
Systematic investment plan (SIP) contributions reached a fresh record of Rs 31,001.67 crore in December 2025, while the number of active SIP accounts rose to 9.79 crore.
In calendar year 2025, gold ETFs delivered an average return of 71.55 per cent. The category recorded strong performance with leading schemes posting returns above 70 per cent. On a year-on-year basis, gold ETF inflows grew 1,719 per cent compared with December 2024.
Industry data also indicated that seven new gold ETF launches in 2025 collectively mobilised Rs 113 crore. Analysts noted that gold performance in 2026 will remain influenced by global macroeconomic developments, real interest rates, currency movements, and central bank demand. Any easing in geopolitical and economic risk could lead to price consolidation or correction, although gold is expected to continue playing a portfolio hedge and diversification role.
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