Nippon India Gold BeES Leads Indian Gold ETF Inflows in 2025

In 2025, Nippon India ETF Gold BeES dominated fund flows among domestic products and ranked fifteenth worldwide, leading Indian participation in the global gold ETF markets.

Indian Gold ETFs See Strong Global Participation in 2025

According to statistics from the World Gold Council, Indian gold exchange-traded funds (ETFs) together accounted for about 5% of worldwide net inflows and around 2.5% of all global assets under management. With $4.37 billion in inflows into Gold ETFs, India came in third place internationally, behind only China and the United States.

Globally, gold exchange-traded funds (ETFs) had net inflows of $88.55 billion in 2025, bringing their total assets under management to $558.9 billion and aggregate holdings to 4,025.4 tonnes as on December 31. Over the course of the year, net inflows into Indian gold ETFs totaled $4.37 billion. By year’s end, they had 95 tons of assets totaling $14.0 billion.

Nippon India Gold BeES Leads Domestic Market

With $4.38 billion in assets at the end of 2025, $1.17 billion in net inflows, and 10.1 tonnes of net demand, Nippon India Gold BeES dominated Indian gold ETFs at the individual fund level. On January 12, Gold BeES was trading at Rs 116.76 on the NSE, up 2.77%, with 63.5 million units traded.

The fund claimed returns of 73.84% after one year, 32.43% after three years, and 20.79% after five years. Despite volatility, investor interest in gold ETFs was consistent, according to Vikram Dhawan, Head of Commodities and Fund Manager at Nippon India Mutual Fund. Over the last year, economic uncertainty and a rising inclination for regulated investment channels have contributed to the growth of gold exchange-traded funds (ETFs). Managing short-term price volatility associated with global liquidity cycles and interest-rate expectations is still a crucial factor, he added, even if gold and silver continue to serve as portfolio diversifiers.

Other Top Indian Gold ETFs

Strong flows were also seen in other top Indian gold ETFs. With 13.2 tonnes of holdings and US$1.95 billion in assets at the end of the year, the 22nd-ranked ICICI Prudential Gold iWIN ETF saw $683 million in net inflows. With assets under management reaching Rs 17,000 crore and one-year returns of about 73–74%, SBI Gold ETF and HDFC Gold ETF, rated 26th and 25th internationally, respectively, also had steady inflows. A wide range of investors participated in domestic inflows via mid-sized products including Kotak Gold ETF, Axis Gold ETF, Zerodha Gold ETF, Mirae Asset Gold ETF, DSP Gold ETF, UTI Gold ETF, Aditya Birla Sun Life Gold ETF, and Quant Gold ETF.

Why Investors Prefer Gold ETFs

Experts point out that gold serves as a hedge rather than a growth asset in portfolios, and that ETFs are more efficient and economical than actual gold. According to Himanshu Shrivastava of Morningstar, Indian investors are increasingly using gold exchange-traded funds (ETFs) as a regulated and liquid substitute for actual gold, especially during times of turbulence in the bond and equities markets. According to him, “steady allocations into gold ETFs, even amid sporadic market fluctuations, reflect their rising importance as a strategic hedging and portfolio diversification tool rather than a simply tactical investment.” New allocations into ETFs have been prompted by rising domestic gold prices, which have further strengthened trust in gold-linked products.

Investors must comprehend the nature of gold and their investing goals, according to Shweta Rajani, Head of Mutual Funds at Anand Rathi Wealth. Gold has historically been used as a buffer against global unpredictability, inflation, and geopolitical threats, but it also experiences cycles similar to those of stocks. “Depending on central bank purchases and jewelry demand, gold may go through down cycles or reversals in the future. Gold may function more like a debt allocation in portfolios than a growth asset, therefore it cannot take the role of equities. ETFs are the most effective method to invest, she said, since they minimize storage problems and expenses and are often less expensive than fund-of-funds.

Frequently Asked Questions

1. In 2025, which Indian gold ETF dominated fund flows?

With 10.1 tonnes of net demand and $1.17 billion in net inflows, Nippon India Gold BeES led Indian participation. Its assets by the end of 2025 were $4.38 billion.

2. What is the worldwide significance of Indian gold ETFs?

Approximately 2.5% of all global gold ETF assets and over 5% of worldwide net inflows came from Indian gold ETFs. After the US and China, India came in third place worldwide for gold ETF inflows.

3. How did the leading Indian gold ETFs perform?

Nippon India Gold BeES: 73.84% for one year, 32.43% for three, and 20.79% for five. One-year returns for SBI Gold ETF and HDFC Gold ETF are about 73–74%. Additionally, mid-sized ETFs shown consistent investor involvement and growth.

4. Why do investors prefer gold ETFs over real gold?

Gold ETFs are affordable, liquid, and subject to regulations. They provide a practical means of portfolio diversification while avoiding the storage problems and costs connected with actual gold.

5. How does gold fit into a portfolio?

The main uses of gold are as a hedge against market volatility, inflation, and geopolitical threats. Instead of using it as a growing asset to supplement stocks and other assets, experts advise using it as a debt allocation.

Conclusion

Gold ETFs attracted a lot of interest from Indian investors in 2025, with Nippon India Gold BeES dominating flows. Gold ETFs are becoming more and more popular as a strategic hedge and portfolio diversifier due to their cost-effectiveness, efficiency, and regulation, which reflects the rising importance of gold in Indian investing plans in the face of market volatility.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Investors should consult a financial advisor before making investment decisions.