Gold ETFs on Fire! Record-Breaking Gold Rate in India Pushes 10-Month Inflows Beyond 5 Years of Investment

Gold ETF Inflows: The record-breaking rally in gold rates in India this year has fuelled investors' interest in gold exchange-traded funds (gold ETFs). As gold prices have surged more than 60% in the year 2025 so far, gold ETF asset under management (AUMs) has crossed Rs 1 lakh crore till October 30, 2025.

The sharp surge in gold and silver prices has brought massive inflows into gold and silver ETFs. Gold ETF inflows in the last ten months in 2025, now stand higher than the net inflows of the last five years (between 2020-2024) combined, according to a Zerodha Fund House report released on Monday, December 1.

Meanwhile, the gold rate in India continued its sharp rally in the past two to three days. The precious metal has regained its Rs 1.3 lakh mark on Monday (as per GoodReturns gold price data). Gold rate in India has jumped more than 55% since the beginning of the year, similarly, silver prices have also surged over 60% year to date (YTD). The first gold etf scheme in India was launched in late 2000s.

" It was a long road from concept to reality; when we launched in 2007, it took us nearly two and a half years just to see the AUM reach ₹1,000 crores. To see that the product category which was once an idea we believed in - has now crossed the ₹1 Lakh Crore milestone, is incredibly humbling for me. It is a heartening validation that if you offer funds that are straightforward and meaningful, they will eventually find their place in investor's portfolios," stated Vishal Jain, CEO, Zerodha Fund House.

What is Gold ETF?

A gold ETF is a commodity-based investment instrument that allows investors to park their money in digital gold. Gold ETFs are Securities and Exchange Board of India (SEBI)-approved investment instruments. Gold ETFs track the prices of domestic gold rates. They perform like individual stocks and are traded similarly on stock exchanges.

What is Driving Gold ETFs Investment In India?

The total net inflows in the gold ETFs have crossed Rs 27,500 crores in October, as per the Zerodha Fund House report. With this, the total AUM in Gold ETF has crossed Rs 1 lakh crore. Gold ETFs as the more efficient vehicle since this modern solution not only eliminates storage hassles and making charges but also offers a tax advantage - a shorter holding period to qualify for the 12.5% LTCG tax rate compared to physical gold.

Gold ETF folios have surged from 7.83 lakhs in October 2020 to more than 95 lakhs in October 2025. "With unit prices for Gold ETFs now as low as approx. Rs 20, the commodity has become accessible to all investors. This empowers investors - regardless of capital - to use gold as a core tool for wealth creation, with the assurance that every unit is backed by physical gold of 99.5% purity or higher," stated the report.

Gold ETF AUM Crosses Rs 1 Lakh Crore Mark

Given the record gold ETF inflows, the toal AUM in the instrument has reached a milestone of Rs 1 lakh crore, as it has doubled within the span of a single year.

Silver ETFs

Not just gold, silver ETFs are also seeing sharp surge in inflows over the past few months. Silver ETFs were launched for the first time in 2022 in India. THe total investor folios in silver ETFs have increased to nearly Rs 25 lakhs as of October 2025 with an AUM of nearly Rs 40,000 crore.