Gold ETF inflows match equity fund flows for the first time in January

India’s gold exchange-traded funds (ETFs) witnessed an unprecedented surge in investor interest in January, drawing ₹24,050 crore in net inflows, almost double the ₹11,647 crore recorded in December, according to the latest AMFI data.

The jump marks one of the sharpest month-on-month increases in the category’s history.

For the first time ever,inflows into gold ETFs stood broadly in line with those into equity mutual funds, signalling that investors are treating gold not merely as a hedge but as a mainstream portfolio allocation.

Other ETFs — a category that typically includes silver and thematic products — also saw rising participation, attracting ₹15,006 crore in January versus ₹13,199 crore in December, suggesting broader appetite for exchange-traded products beyond equities.

Global backdrop supports domestic surge

The domestic trend mirrors global momentum. Data from the World Gold Council (WGC) also shows

January’s inflows alone accounted for 12.5% of total gold ETF assets under management in India, highlighting how concentrated the buying was in a single month.

Why investors piled into gold

Market observers attribute the surge to a mix of price correction and macro uncertainty.

Rochan Pattnayak, Chief Investment Officer, Choice AMC, said gold-linked ETFs saw a near-term pullback after strong gains in 2025 and early 2026, driven largely by profit-taking and expectations that the US Federal Reserve may pause further rate cuts.

Gold prices corrected roughly 2–8% from recent highs before stabilising, creating what many investors interpreted as a buying opportunity.

“Despite short-term volatility, gold’s long-term relevance remains intact,” Pattnayak noted, pointing to limited supply growth, persistent geopolitical risks and steady central bank demand as key structural supports.

He suggested that rather than timing the market, investors should maintain disciplined exposure of around 10–15% of a diversified portfolio, depending on risk profile.

He added that with investment demand strengthening and supply response still muted, gold prices are likely to remain well supported unless financial flows reverse sharply.