The image has been used for representational purposes. file | Photo courtesy: Reuters
After a bull run in gold and sub-optimal returns, mutual fund investors chose gold exchange-traded funds (ETFs) over equity-oriented schemes in December 2025.
Net inflows into gold ETFs, a mutual fund investment vehicle that is relatively in its nascent stage, rose three times to ₹1,16,467 crore in December 2025 from a month earlier, according to Association of Mutual Funds in India (AMFI) data. This is a record high net inflow into gold ETFs. Meanwhile, net inflows into equity-oriented schemes declined 6.2% to ₹28,054 crore in the month under review.
“Gold ETFs have recorded their highest-ever inflows after gold delivered over 70% returns in CY25, pointing to some recent bias,” said Firoz Aziz, joint CEO, Anand Rathi Wealth Ltd.
The emergence of gold ETFs may point to both improving diversification and safe haven demand among Indian mutual fund investors.
There was a net outflow of ₹66,532 crore across all open-ended schemes with rising inflows into gold ETFs and decline in equity inflows.
SIP flows continued to improve on a monthly basis. “The increase was driven by sustained demand for gold-backed products amid elevated macro uncertainty and intermittent risk-off sentiment.
Himanshu Srivastava, Principal Research, Morningstar Investment Research India, said strong gold price momentum through 2025, coupled with increased safe-haven demand, will continue to support investor interest in the sector.
Sure, the benchmark Nifty 50 returned only 10% in the last year as foreign investors sold over ₹1.5 lakh crore in Indian equities due to expensive valuations to justify quarterly earnings.
published – January 09, 2026 11:10 PM IST
