Gold, Silver ETFs Attract Strong Inflows As Investor Demand Rises
Thu Sep 11 2025
Exchange-traded funds (ETFs), particularly gold and silver funds, continued to draw strong inflows in August 2025. According to the Association of Mutual Funds in India (AMFI), gold ETFs logged their highest inflows in seven months, while silver ETFs posted their best month since June.
Gold ETFs: Safe-Haven Appeal Returns
Gold ETFs recorded inflows of Rs 2,190 crore in August, the largest since January’s Rs 3,751 crore. After brief outflows in March and April, gold funds regained momentum as investors sought defensive assets amid global uncertainty and stable domestic bullion prices.
On the Multi Commodity Exchange (MCX), gold rose 5% in August, touching a monthly high of Rs 1,01,967 per 10 grams. On a year-on-year basis, gold prices are up 35–40%, placing the metal close to record highs.
Silver ETFs: Industrial and Safe-Haven Demand
Silver ETFs attracted Rs 1,759 crore in August, supported by both safe-haven buying and rising industrial demand. Silver prices on the MCX gained 9% during August, peaking at Rs 1,17,468 per kg, and are up 40–45% year-on-year.
A Motilal Oswal report attributed silver’s strength to geopolitical tensions, tariff uncertainty, a weaker dollar, and growing industrial use in solar panels, electric vehicles, and 5G equipment. Institutional buying by Russia and Saudi Arabia, along with India’s imports of over 3,000 tonnes in H1 2025, added further support.
Expert Views
Nehal Meshram, Morningstar Investment Research India: “For domestic investors, gold acts as a shield against currency fluctuations and inflation, while providing tactical positioning ahead of pivotal global monetary policy decisions."
Hemen Bhatia, CEO, Angel One AMC: “Gold has once again proven its strength as a value asset and a reliable hedge in volatile markets. With cumulative investments surpassing ₹5,648 crore year-to-date, Gold ETFs have emerged as a key allocation for long-term investors."
Passive AUM Growth
Passive investment products have also seen robust expansion. AMFI data shows:
Passive Category Aug 2024 AUM Aug 2025 AUM YoY Growth
Gold ETFs Rs 37,390 cr Rs 72,496 cr 93.9%
Silver ETFs Rs 22,963 cr* Rs 26,294 cr +₹3,331 cr
Other ETFs Rs 7.94 lakh cr Rs 8.42 lakh cr 6%
Total Passive AUM Rs 11.2 lakh cr Rs 12.5 lakh cr 11.5%
*July 2025 base for Silver ETFs
On a monthly basis, overall passive AUM rose 0.2%.
Top Performing Gold ETFs
ETF Name AUM (Rs cr) 1-Year Return (%)
Nippon India Gold BeES 23,832 51.0
HDFC Gold ETF 11,379 51.4
SBI Gold ETF 9,506 51.4
ICICI Prudential Gold ETF 8,770 51.7
Top Performing Silver ETFs
ETF Name AUM (Rs cr) 1-Year Return (%)
Nippon India Silver ETF 9,099 50.8
ICICI Prudential Silver ETF 7,257 51.2
HDFC Silver ETF 1,369 50.4
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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