New Delhi, April 15: Despite strong demand for physical gold, investments in digital platforms have surged rapidly. Gold exchange-traded funds (ETFs) have gained significant popularity among both retail and institutional investors. In March 2026, the total assets under management (AUM) reached ₹1,71,468.4 crore, nearly tripling year-on-year.
According to a report by ICRA Analytics, this figure reflects a compound annual growth rate (CAGR) of 64.76% over the past five years. In March 2021, the AUM was only ₹14,122.72 crore.
Year-on-year, the AUM increased by 191.18% compared to ₹58,887.99 crore in March 2025, indicating a rapid rise in gold-related investments in India.
In March 2026, net inflows into gold ETFs amounted to ₹2,265.68 crore, contrasting sharply with an outflow of ₹77.21 crore during the same period last year. In March 2021, inflows were just ₹662.45 crore.
However, month-on-month inflows saw a decline. Compared to ₹5,254.95 crore in February 2026, March experienced a 56.88% drop. This decrease is attributed to a temporary dip in gold prices and reduced global risks.
Ashwini Kumar, Senior Vice President and Head of Market Data at ICRA Analytics, noted two main reasons for the growing investor interest: global uncertainty and strong gold prices.
He explained that recent geopolitical tensions and rising gold prices have led investors to view gold ETFs as a safe investment option. Gold has always been considered a safe haven, contributing to the increased investment.
Currently, there are 26 gold ETF schemes available in the market, with six launched in the fiscal year 2025-26.
These funds have delivered an average return of approximately 58.81% to 62.85% over the past year, while the five-year CAGR return ranges from about 25.78% to 26.11%.
Although inflows have slightly decreased in recent months, investor confidence in this asset class remains strong.
Kumar further stated that despite short-term declines, the significance of gold ETFs persists. Even with reduced inflows, interest among investors is still evident.
He highlighted the differences between physical gold and ETF investments, noting that gold ETFs are more suitable for portfolio diversification and better returns, while physical gold is primarily purchased for use and traditional reasons.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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