Gold continues to shine as a reliable asset in turbulent times. From January 2024 to May 2025, gold not only delivered solid price appreciation but also witnessed a surge in investor interest- particularly through Gold Exchange Traded Funds (ETFs). Amid global economic uncertainties, investors have increasingly turned to gold as a hedge and safe-haven asset, and Gold ETFs have emerged as a preferred vehicle for this exposure.
According to the latest industry data:
- Assets Under Management (AUM) for gold ETFs jumped from approximately ₹27,778 crore in Jan 2024 to over ₹61,422 crore in April 2025, representing a growth of nearly 121%.
- Investor folios surged from 49.72 lakh to 71.44 lakh, showing a 44% rise in participation, indicating growing acceptance among retail investors.
- In just four months of 2025, gold ETFs have witnessed net inflows of ₹5,648 crore– reflecting heightened investor conviction amidst market volatility.
Also read: Is investing in gold is a good option?
| Metric | Jan’24 | April’25 | Growth |
|---|---|---|---|
| Total AUM (₹ cr.) | 27,778 | 61,422 | ~121% |
| No. of Folios | 49.72 lakh | 71.44 lakh | ~44% |
| Funds Mobilised (₹ cr.) | 734 | 1,663 | ~127% |
| Gold Price (INR per oz) | ₹1,69,014 | ₹2,74,652 | ~63% |
What makes this growth even more remarkable is that it comes after gold ETF AUM had already grown 27% in 2023, suggesting strong, sustained momentum rather than a one-off surge.
Not Just Price-Driven Growth
While gold prices increased approximately 59% from around ₹64,000 to ₹1,02,000 per 10 grams, the growth in AUM and investor folios outpaced the price movement. This points to net new investments, not just mark-to-market gains. Investors are actively adding gold, not merely benefiting from appreciation.
This behaviour indicates strategic asset allocation rather than speculative buying. It’s also a sign that investors now recognize the role of gold as a core portfolio holding, not just a temporary inflation hedge or crisis buffer.
Gold is one of the few asset classes with low or negative correlation to equities and fixed income. It performs particularly well in times of geopolitical stress, currency depreciation, inflation spikes, and stock market corrections.
In the last 1.5 years, several of these risks materialized—rate hikes, Middle East tensions, weak global growth—and gold has delivered. Allocating 5–10% of the portfolio to gold as part of a diversification strategy can help manage such risks.
Also read: Gold and silver-two attractive investment options
Continue Adding Gold
Given the consistent rise in AUM and folios—backed not just by price but by growing conviction- gold is likely to remain a favoured asset class. Whether through ETFs, sovereign gold bonds, or digital gold platforms, investors should continue periodic allocation to gold.
In a world of shifting macroeconomic conditions, gold remains an anchor of stability. It’s not just gold’s price that matters, but how it supports a portfolio through ups and downs.
Disclaimer
The data in this presentation is meant for general reading purpose only and is not meant to serve as a professional guide/investment advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data, and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as on date. The information placed on the presentation is for informational purposes only and does not constitute an offer to sell or buy a security.
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