Indian Gold Exchange Traded Funds (ETFs) recorded their highest-ever monthly net inflows in April 2026, attracting ₹3,800 crore from retail and institutional investors. The total Gold ETF AUM (Assets Under Management) in India has now crossed ₹45,000 crore, according to data from the Association of Mutual Funds in India (AMFI).
What Is Driving the Inflows?
Several factors have converged to make Gold ETFs particularly attractive in the current environment. First, rising gold prices have attracted momentum-driven buyers hoping to benefit from continued appreciation. Second, the removal of indexation benefit on physical gold from Budget 2024 has made the tax treatment of Gold ETFs (12.5% LTCG after 24 months) no different from physical gold, removing a previous disincentive. Third, increased financial literacy among younger investors has driven SIP (Systematic Investment Plan) registrations in gold funds to record levels.
Number of Folios Crosses 1.6 Crore
The number of unique investor folios in Gold ETFs has crossed 1.6 crore (16 million), up from approximately 1 crore a year ago. This expansion in the investor base reflects growing awareness of Gold ETFs as a cost-efficient, storage-free alternative to physical gold purchases.
Gold ETF vs Gold Fund: What Is the Difference?
Gold ETFs trade on stock exchanges like shares and require a demat account to hold. Gold Funds (or Gold Fund of Funds) invest in Gold ETFs and can be purchased through regular mutual fund platforms without a demat account. Gold Funds carry a slightly higher expense ratio than direct Gold ETF purchases but are more accessible to investors without a trading account.