Gold exchange-traded funds (ETFs) in India experienced a significant 50% increase in January, surpassing the inflows of the entire equity mutual fund sector. Data from the Association of Mutual Funds in India (AMFI) revealed that gold ETF inflows reached around Rs 24,040 crore during the month, more than double the Rs 11,647 crore recorded in December. This surge positioned gold as a standout performer in January.
Equity mutual fund inflows, on the other hand, amounted to Rs 24,029 crore in January, marking a decrease of nearly 14% from Rs 28,054 crore in December. The overall mutual fund industry witnessed positive flows totaling Rs 1.56 lakh crore, driven by net inflows of Rs 74,827 crore in debt schemes as per AMFI data. Hybrid schemes attracted Rs 17,356 crore, while “other schemes,” including ETFs, brought in Rs 39,955 crore.
Despite market volatility, mutual fund assets under management (AUM) expanded in January, showcasing investor resilience. Notably, gold ETFs saw a remarkable 50% growth in AUM, with monthly inflows surpassing those of the entire equity segment. This trend underscores the increasing financialization of gold as an investment asset, according to Varun Gupta, CEO of Groww Mutual Fund.
The mutual fund industry reported positive net inflows totaling Rs 1.56 lakh crore, primarily fueled by net inflows of Rs 74,827 crore in debt schemes. AUM for open-ended equity-oriented schemes reached Rs 34.86 lakh crore, while open-ended debt-oriented schemes managed Rs 18.90 lakh crore. Analysts highlighted the constructive flow environment, supported by steady SIP contributions and investor confidence in the long-term growth potential of Indian equities.
Himanshu Srivastava, Principal Research at Morningstar Investment Research India, noted that despite market fluctuations, flows remained positive, backed by consistent SIP contributions and confidence in the long-term growth prospects of Indian equities. The moderation in overall inflows was attributed to a slowdown in the mid- and small-cap segments, while large-cap and focused funds witnessed increased traction in January compared to December.
