New Delhi, April 15: Despite strong demand for physical gold, investment in digital platforms is rapidly increasing. Gold Exchange-Traded Funds (ETFs) have gained significant popularity among both retail and institutional investors. In March 2026, the total assets under management (AUM) surged to ₹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.
On a year-on-year basis, the AUM increased by 191.18% compared to ₹58,887.99 crore in March 2025, indicating a rapid growth in gold-related investments in India.
In March 2026, net inflows into Gold ETFs reached ₹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, a month-on-month decline in inflows was observed. Compared to ₹5,254.95 crore in February 2026, March saw a 56.88% decrease. This drop is attributed to a temporary decline in gold prices and reduced global risk.
Ashwini Kumar, Senior Vice President and Head of Market Data at ICRA Analytics, highlighted two main reasons for the growing interest among investors: global uncertainty and strong gold prices.
He noted that recent geopolitical tensions and rising gold prices have led investors to view Gold ETFs as a safe investment option.
Kumar emphasized that gold has always been considered a safe haven, which explains the increase in investments.
Currently, there are 26 Gold ETF schemes available in the market, with six schemes launched in the fiscal year 2025-26.
These funds have delivered an average one-year return of approximately 58.81% to 62.85%, 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. The reduction in inflows does not indicate a complete halt, demonstrating that investor interest is still intact.
He explained the difference between physical gold and ETF investments, stating that Gold ETF investments are more suitable for portfolio diversification and better returns, while physical gold is primarily purchased for use and traditional reasons.
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