Gold ETFs attract inflows of Rs 2,080 crore, highest in last 5 months

Mumbai, July 9 (IANS) Gold exchange-traded funds (ETFs) recorded an inflow of Rs 2,080.85 crore in June 2025, the highest inflows in five months amid bullion prices in the domestic market traded near life highs, Association of Mutual Funds in India (AMFI) data showed on Wednesday.

The ETFs witnessed a six-fold, month-on-month surge in inflow in the month as compared to Rs 292 crore in May, AFFI data showed.

"Gold ETFs witnessed a sharp uptick in investor interest in June 2025, recording the highest monthly inflow since January. This builds on the modest recovery in May, following muted activity and marginal outflows in March and April," said Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India.

"The robust inflows in June indicate a decisive shift in sentiment, likely supported by resilient gold prices, geopolitical uncertainties, and volatility in equity and fixed income markets", the analyst added.

Bullion ETFs are passive investment vehicles that track the movement of the gold prices. In March and April, when yellow metal prices were soaring, investors withdrew funds from gold exchange-traded funds (ETFs) in order to book profits.

Meanwhile, the mutual fund systemic investment plan (SIP) inflows reached a record high of Rs 27,269 crore in the said month, registering a gain of 2 per cent from the preceding month's data of Rs 26,688 crore, AMFI data showed.

The first time SIP inflows have surpassed the Rs 27,000 crore mark, according to the data.

Compared to Rs 72.20 lakh crore in May and Rs 69.99 lakh crore in April, the mutual fund industry's total net assets under management (AUM) reached an all-time high of Rs 74.41 lakh crore.

In June, mutual fund inflows totalled Rs 49,301 crore, up 67 per cent (month-over-month) from May's inflow of Rs 29,572 crore. To which, inflows into equity mutual funds increased by 24 per cent to 23,587 crore. Except for ELSS funds, all equity categories saw strong inflows.

--IANS

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