Physical gold remains popular, but gold exchange-traded funds (ETFs) are gaining traction in the digital realm. Total assets under management (AUM) for gold ETFs in India soared to Rs 1,71,468.4 crore in March 2026, nearly tripling from the previous year. This growth represents a five-year compound annual growth rate (CAGR) of 64.76%, compared to Rs 14,122.72 crore in March 2021, according to an ICRA Analytics report.
On a yearly basis, net AUM surged by 191.18% from Rs 58,887.99 crore in March 2025, highlighting the increasing interest in gold-linked investments in the country. In March 2026, net inflows into gold ETFs amounted to Rs 2,265.68 crore, a significant turnaround from net outflows of Rs 77.21 crore in the same period last year. This figure was notably lower at Rs 662.45 crore in March 2021.
Despite the positive trend, monthly inflows saw a notable decline of 56.88% from Rs 5,254.95 crore in February 2026. This drop was attributed to a temporary correction in gold prices and a decrease in global risk sentiment. Ashwini Kumar, Senior Vice President and Head of Market Data at ICRA Analytics, credited the surge in investor interest to global uncertainty and strong gold price performance.
Investors, both retail and institutional, have increasingly turned to gold ETFs as a defensive and tactical investment amid geopolitical volatility. The market currently offers 26 gold ETF schemes, with six new ones launched in the financial year 2025-26. Average one-year returns for most funds range from approximately 58.81% to 62.85%, while five-year CAGR returns vary from around 25.78% to 26.11%.
Despite the recent dip in inflows, Kumar emphasized that investor commitment to Gold ETFs remains strong. He highlighted the structural relevance of Gold ETFs even during short-term corrections, noting that these investments provide a transparent and efficient way to access gold prices for financial investors.
