Gold ETFs Surge as Safe Haven Amid Geopolitical Unrest

Gold Exchange Traded Funds (ETFs) saw a significant influx of Rs 31,561 crore in the March 2026 quarter, driven by geopolitical tensions. Despite a moderation in March, investor interest remains robust, indicating gold's continuing appeal as a diversification tool. The asset base and investor accounts experienced notable growth.

Gold Exchange Traded Funds (ETFs) experienced a notable influx of Rs 31,561 crore in the March 2026 quarter, a nearly six-fold increase from the same period in 2025, attributed to investor concerns over geopolitical tensions. Quarter-on-quarter, the inflows rose 36% to Rs 23,132 crore.

Despite a slowdown in March inflows, which fell to Rs 2,266 crore from Rs 24,040 crore in January, the asset base and investor accounts saw considerable growth. The Association of Mutual Funds in India (Amfi) reported that gold ETFs continue to attract significant interest, acting as a diversification tool amid economic uncertainties.

Senior Analyst Nehal Meshram noted that while March's inflows moderated, the appeal of gold ETFs remains strong due to their liquidity and convenience. The assets under management for these funds nearly tripled to Rs 1.71 lakh crore by March 2026, indicating a sustained investor preference for gold investments.

(With inputs from agencies.)