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Below the Perspective on AMFI data by Karthick Jonagadla, investment manager on smallcase and Founder and CEO of Quantace Research

Rs.1 Lakh Crore and Rising: Gold ETF Flows Enter an Additive Regime

India’s Gold ETFs are graduating from tactical trade to strategic allocation. Net inflows accelerated from Rs.2,189.51 crore in August to a record Rs.8,363.13 crore in September, then stayed elevated at Rs.7,743 in October as the corpus crossed the Rs.1 lakh crore mark—evidence of persistence, not a one-off print.

 Gold seized leadership within passive in September, with precious-metal ETFs accounting for ~71.9% of passive inflows, and it remained the dominant single contributor in October—signalling that investors are layering insurance rather than abandoning equity beta. AUM math in September already showed a sharp step-up in gold ETF assets, setting the base for October’s milestone.

 Internationally, continuing ETF additions and macro uncertainty kept the global hedge bid intact, reinforcing domestic flows. From an Indian portfolio-construction lens: keep an eye on

(i) whether implied price returns remain positive alongside inflows, and

(ii) gold’s share of passive flows holding materially above trend; both would confirm that the current regime is additive (price + flow), not a zero-sum rotation.

 Bottom line: with elevated, repeated inflows, rising share within passive, and a Rs.1 trillion-plus corpus, Gold ETFs in India look firmly embedded as a strategic sleeve in diversified portfolios.

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