Strong performance, investor appetite for safety and diversification, and macroeconomic uncertainty all contributed to the record inflows of Rs 8,363 crore into gold exchange-traded funds (ETFs) in September 2025. AUM increased 126% annually and 24% weekly.
Record Gold ETF Demand
Amid global risk, geopolitical tensions, and market volatility, investors sought protection and portfolio diversification, which resulted in unprecedented inflows into gold ETFs in September.
Gold exchange-traded funds (ETFs) had record inflows of capital in September, with inflows quadrupling to Rs 8,363 crore, the largest monthly inflow in the category’s history. Experts in mutual funds credit the spike to recent outstanding performance as well as rising investor need for diversity and safety.
“Over the last several months, precious metals—especially gold and silver—have done very well. Flows into gold nearly quadrupled in September, rising from about Rs 2,000 crore in August to around Rs 8,300 crore. Strong performance and investors looking for safety and diversification were major factors in this spike. In a similar spirit, Anand Vardarajan, Chief Business Officer of Tata Asset Management, said that multi-asset funds had robust flows within the hybrid category.
Investors Rush to Gold
Regarding the reasons why investors favor gold, another expert said that the increase in inflows into gold exchange-traded funds (ETFs) is a result of both global risk aversion and strategic positioning in front of significant central bank policy reviews.
In September 2025, demand for gold exchange-traded funds (ETFs) surged as a safe haven due to a mix of global risk aversion and strategic positioning ahead of significant central bank policy reviews. Amidst increased geopolitical tensions, unstable markets, and a stronger U.S. dollar, investors resorted to gold as a dependable store of wealth, according to Nehal Meshram, Senior Analyst — Manager Research, Morningstar Investment Research India.
September’s inflow into gold ETFs was the greatest monthly increase so far this fiscal year and the category’s highest level ever. From an inflow of Rs 2,189 crore in August to Rs 8,363 crore in September, the inflows into gold ETFs increased by about 282% on a monthly basis.
Gold Funds See Boom
According to statistics supplied by the Association of Mutual Funds in India (AMFI), the inflows on an annual basis grew by 578% compared to an inflow of Rs 1,232 crore in September 2024.
Nehal Meshram claims that the robust momentum highlights gold’s increasing significance as a hedge against macrouncertainty and a strategic portfolio diversifier. At home, investors increasingly saw gold as a useful counterbalance to equity exposure, particularly in the face of currency fluctuations and conflicting global growth signals.
In September, gold ETFs’ total assets under management (AUM) increased by about 24% to Rs 90,135 crore from Rs 72,495 crore in August. AUM increased by around 126% on an annual basis from Rs 39,823 crore in September 2024.
Gold ETFs Drive Portfolio Growth
Gold ETFs have solidly re-established themselves as a favored option for portfolio stability and inflation protection, underscoring their importance in protecting wealth during difficult times, with total net inflows reaching INR 19,830 crore in FY2025, according to Nehal.
The inflow into other ETFs, such as those based on silver, was Rs 8,150 crore in September as opposed to Rs 7,244 crore in August.
Gold ETFs are still growing, while other ETFs have increased from around Rs 1,500 crore last month to over Rs 8,000 crore today. Passive ETFs have also witnessed growth. While some investors are accumulating assets and others are seeking profits, silver exchange-traded funds (ETFs) are also gaining traction. Unless there is a significant downturn, we anticipate that demand in gold and silver will continue to grow, said Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India).
Silver ETF Subscriptions
Kotak Mutual Fund has declared that, as of October 10, it would no longer accept lump sum or switch subscriptions to its silver ETF Fund of Fund.
Due to severe shortages in India’s physical silver market, local silver is presently selling at a large premium compared to international prices. This action was taken in reaction to the situation.
The fund firm claims that as of October 9, 2025, the intraday premium peaked at 12% before closing at 5.7%, indicating that the premium has risen from around 0.5% in early September 2025 to 5.7% as of that date. Given the state of the market, there is now a 10% purchasing premium and a 3% selling premium.
“The September data highlights the growing relevance of precious metals in long-term asset diversification,” said Kartik Jain, MD & CEO, Shriram AMC. It serves as a reminder to investors that a combination of conventional stock and debt hybrid methods and a thoughtful metals allocation may fortify portfolios against economic volatility while opening up opportunities for long-term prosperity.