January AMFI Data: Gold ETFs Net Rs 24,040 Crore Inflows, AUM Reaches Rs 1.84 Lakh Crore

Indian retail investors significantly increased allocations to gold exchange traded funds (ETFs) in January, pushing net inflows to a record level and matching inflows into actively managed equity mutual funds for the first time. The surge came as gold continued to outperform domestic equities, reinforcing its role as a preferred hedge amid market uncertainty.

According to data released by the Association of Mutual Funds in India (AMFI) on Tuesday, net inflows into gold ETFs stood at an all-time high of ₹24,040 crore in January. This marked a sharp jump from December’s net inflow of ₹11,647 crore, highlighting growing investor appetite for the precious metal despite a brief pullback in prices during the month.

In a notable comparison, actively managed equity mutual funds recorded net inflows of ₹24,029 crore in January — marginally lower than gold ETFs and down nearly 14% from the previous month. The convergence of flows between the two asset classes underscores a shift in investor preference, as rising volatility in equity markets prompted many to rebalance portfolios toward relatively safer assets.

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Gold ETFs are passive investment instruments that track domestic gold prices and allow investors to gain exposure to the metal without the challenges of physical storage, purity concerns, or security risks. These funds are also considered tax-efficient and offer higher liquidity compared to physical gold, making them increasingly attractive to both retail and institutional investors.

The total assets under management (AUM) of gold ETFs rose to ₹1.84 lakh crore as of January 31. AMFI data indicates that this growth reflects not only strong investor inflows but also the appreciation in gold prices over the period, further boosting the overall valuation of these funds.

Gold prices surged nearly 24% in the local market during the month, supported by global uncertainties, expectations of interest rate cuts by major central banks, and sustained demand for safe-haven assets. Analysts note that these factors have strengthened gold’s appeal as a portfolio diversifier at a time when equity valuations remain stretched.

The sharp rise in gold ETF inflows, combined with slowing equity fund subscriptions, suggests a cautious stance among investors as they seek stability and downside protection. Market participants will now closely watch whether this trend continues in the coming months, especially as global macroeconomic signals and domestic market conditions evolve.

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