Gold ETFs Clock Record Inflows

Mumbai: Gold exchange-traded funds (ETFs) witnessed a massive surge in inflows in January, as investors poured Rs3,751.4 crore into these funds, according to the Association of Mutual Funds in India (AMFI) data. The inflows in January were the highest-ever recorded for gold ETFs in a single month, as Rs640 crore was invested in December 2024.

Gold ETFs have witnessed remarkable growth over the past year. On a yearly basis, these funds recorded a massive 471 per cent increase in inflows, rising from Rs657 crore in January 2024 to Rs3,751.4 crore in January 2025.

In addition to the surge in investments, Gold ETFs delivered impressive returns, offering an average gain of nearly 7.29 per cent in January.

The surge in investments was driven by multiple factors, including rising gold prices and increasing market volatility amid US President Donald Trump’s tariff threats. With global uncertainties and geopolitical tensions affecting investor sentiment, many turned to gold as a safe-haven asset.

Additionally, expectations of interest rate cuts by major central banks, including the US Federal Reserve, have made gold more attractive.