Gold ETFs led the surge with ₹8,363 crore, while silver ETFs also saw rising traction as investors looked for hedges amid market uncertainty.
Industry participants say the spike is driven by both return-chasing retail flows and a tactical shift toward low-cost, liquid allocations.
“While gold ETFs have been gaining steam every month, this time we’re also seeing other ETFs jump sharply—from about ₹1,000 crore last month to nearly ₹8,000 crore now,” said Suranjana Borthakur, Mirae Asset Investment Managers.
“Silver, too, is catching investor attention as part of the commodity allocation mix.”
However, some strategists caution that the surge may be influenced less by asset allocation discipline and more by short-term performance chasing.
“More than ₹8,000 crore—over 10% of the previous month’s AUM—flowed into gold ETFs, exactly in parallel with gold delivering over 10% returns in a single month and nearly 60% for the year,” noted Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital.
“This reflects classic recency bias. It feels rewarding now, but can distort portfolios over time.”
Multi-asset funds also recorded ₹5,000 crore in inflows, suggesting that many investors are opting for indirect gold exposure without betting exclusively on it.
Analysts say this indicates fear-driven hedging rather than long-term diversification.
Despite the rush to commodities, core equity categories such as flexi-cap and large-cap ETFs continued to draw steady interest.
Experts believe ETF flows will stay elevated as volatility persists and investors seek liquidity with lower decision fatigue, but caution that allocation discipline — not momentum — should guide exposures.
First Published: Oct 10, 2025 3:18 PM IST
