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Rising gold costs and sub-optimal returns led mutual fund buyers to go for gold exchange-traded funds (ETFs) over equity-oriented schemes in December 2025.
Internet inflows into gold ETFs, a comparatively nascent mutual fund funding automobile, tripled month-on-month to Rs 1,164.67 billion in December 2025, in accordance with knowledge from the Affiliation of Mutual Funds in India (AMFI). That is the best web influx right into a gold ETF ever. In the meantime, web inflows into equity-oriented schemes declined by 6.2% in the course of the month to Rs 28,054 crore.
“Gold ETFs have seen document inflows after gold delivered over 70% returns in 2025, indicating a point of recency bias,” mentioned Feroze Azeez, co-CEO, Anand Rati Wealth Restricted.
The emergence of gold ETFs might sign each the rising diversification of mutual fund buyers in India and their demand as a protected haven asset.
Greater inflows to gold ETFs and decrease fairness inflows led to web outflows of Rs 66,532 crore throughout all open-ended schemes.
SIP inflows continued to enhance on a month-to-month foundation. “This surge was pushed by sustained demand for gold-backed merchandise amid heightened macro uncertainty and intermittent risk-off sentiment.
“The strong momentum in gold costs via 2025, coupled with rising demand for safe-haven property, continued to assist investor curiosity within the house,” mentioned Himanshu Srivastava, Principal Researcher, Morningstar Funding Analysis India.
Certainly, the benchmark Nifty 50 returned simply 10% final 12 months as overseas buyers bought over Rs 1,500 crore of Indian shares within the wake of lofty valuations to justify quarterly income.
