The Golden Milestone: Record $10 Billion
India’s fascination with gold has entered a new era — one powered by technology and modern investing.
According to data released by the Association of Mutual Funds in India (AMFI), the total assets under management (AUM) in Gold Exchange-Traded Funds (ETFs) have crossed $10 billion (₹83,000 crore) for the first time ever in October 2025.
This record-breaking milestone marks a 40% year-on-year growth, underscoring the renewed investor confidence in gold amid global market turbulence and domestic inflation concerns.
“Gold ETFs have become the new-age locker for Indian investors,” said Nilesh Shah, Group President, Kotak Mahindra AMC. “They combine India’s traditional love for gold with the convenience and transparency of modern markets.”
📈 Why Gold ETFs Are Booming
Gold has always been India’s favorite hedge against uncertainty. But in 2025, a combination of economic, geopolitical, and currency-related factors pushed investors to load up on the yellow metal through ETFs rather than physical bullion.
Here are the key drivers:
Global Instability – The ongoing conflicts in Eastern Europe and trade tensions between the U.S. and China have made investors flock to safer assets.
Inflation Concerns – Persistent inflation and high energy prices continue to erode real returns from equities and bonds.
Rupee Volatility – The Indian rupee’s depreciation against the dollar has increased domestic gold prices, boosting ETF values.
Ease of Access – Online platforms and apps have made it easier for millennials to invest in fractional gold units through ETFs.
“Digital gold is the new financial jewelry,” quipped Deepak Shenoy, CEO of Capitalmind. “People no longer need lockers — they need mobile apps.”
🏦 Institutional Interest Rising
What’s particularly striking is that institutional and HNI participation in gold ETFs has surged alongside retail investors.
Large banks, pension funds, and corporate treasuries are diversifying their portfolios by allocating 3–5% of assets to gold ETFs, according to a report by Motilal Oswal Financial Services.
“We are witnessing a strategic shift,” said Amit Bhatia, Chief Investment Strategist at Edelweiss AMC. “Gold is no longer just a crisis hedge — it’s a long-term portfolio stabilizer.”
The National Stock Exchange (NSE) reported that trading volumes in gold ETFs have risen 60% compared to 2024, with Nippon India Gold ETF, SBI Gold ETF, and HDFC Gold ETF emerging as top performers.
🪙 The Digital Edge: Millennials and First-Time Investors
Gold ETFs are now becoming popular among younger, tech-savvy investors. Unlike physical gold, ETFs require no storage costs, no making charges, and offer instant liquidity.
“Gold ETFs are perfect for SIP-style investing,” explained Rachana Ranade, financial educator. “You can accumulate gold over time without worrying about purity or safety.”
This new demographic shift is reshaping how Indians perceive gold — not as jewelry, but as a financial instrument aligned with modern wealth planning.
🌍 Global Context: Gold Shines Amid Market Volatility
Globally, gold prices have surged to $2,460 per ounce, nearing an all-time high as investors hedge against global recession fears and fluctuating bond yields.
The World Gold Council (WGC) noted that India now accounts for 12% of the world’s gold ETF inflows, up from 7% last year — a testament to the country’s growing influence in global precious metal markets.
“India has become a major pillar of global gold demand,” said Louise Street, Senior Analyst, WGC. “The ETF revolution is unlocking a new generation of investors.”
📊 Performance Snapshot (as of October 2025)
| ETF Name | 1-Year Return | AUM (₹ crore) | Expense Ratio |
|---|---|---|---|
| Nippon India Gold ETF | +18.2% | 17,650 | 0.36% |
| HDFC Gold ETF | +17.5% | 13,210 | 0.37% |
| SBI Gold ETF | +17.8% | 12,540 | 0.33% |
| ICICI Prudential Gold ETF | +18.0% | 9,870 | 0.38% |
Source: AMFI, NSE Data, October 2025
🔍 Expert Outlook: Can the Rally Continue?
Market analysts believe gold prices could stay elevated through 2026 if inflation remains sticky and central banks maintain high interest rates.
However, some caution that a potential rebound in equity markets might slow the ETF inflows in the short term.
“Gold will remain a strong hedge — but investors should avoid chasing peaks,” advised Devina Mehra, founder of First Global. “A disciplined SIP approach works better than speculative buying.”
🏁 Conclusion: India’s Golden Moment
India’s gold obsession has found a digital future. From vaults to virtual wallets, investors are turning tradition into innovation — and in doing so, making India a global gold ETF powerhouse.
“Gold has always been emotional for Indians,” said Nilesh Shah. “Now it’s rational too.”
As global uncertainties persist, India’s $10 billion gold ETF milestone is not just a number — it’s a sign that the new gold rush has gone digital.
