Gold ETFs Record 6-Fold Jump In September Inflows Amid Geopolitical Tensions, Price Rise: Report

New Delhi: Gold ETFs saw a sixfold rise in inflows in September due to geopolitical tensions, central bank purchases, and expectations of US interest rate cuts, a report said on Wednesday.

Net inflows increase by 578.28 per cent to Rs 8,363.13 crore in September 2025 ahead of Dhanteras, up from Rs 1,232.99 crore last year, the report from ICRA Analytics said.

Net inflow has witnessed a CAGR growth of 69.53 per cent over last 5 years from Rs. 597.26 crore in September 2020, the report noted.

Net assets under management for Gold ETFs surged to Rs 90,135.98 crore in September, nearly doubling from Rs 39,823.50 crore a year earlier, marking a 126.34 per cent increase. On a month-on-month basis, net AUM increased by 24.33 per cent from Rs 72,495.60 crore in August this year, the report noted.

“Escalating geopolitical tensions, global uncertainties and overall dynamic outlook seem to be boosting the safe-haven appeal of the bullion,” said Ashwini Kumar, SVP and Head Market Data, ICRA Analytics.

Further, investors prefer gold ETFs for their liquidity, transparency, cost-effectiveness, and ease of trading over physical gold, he added.

The demand for physical gold has steepened generally across various countries, which shall continue further and keep the gold price firm in the festive season and beyond in the near to mid-term, Kumar added.

Kumar also noted that ETFs provide portfolio diversification, inflation protection, and tax efficiency. He recommended strategic entry after short-term corrections, such as post-Diwali, which could offer attractive opportunities for phased investments.

Currently, there are 22 gold ETFs, including four launched in 2025. As of September 30, 2025, gold ETFs reported average returns of 50.97 per cent over one year, 30.36 per cent over three years, and 16.93 per cent over five years. The top five funds have a five-year CAGR ranging from 16.95 per cent to 17.23 per cent.

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