Inflows into gold exchange-traded funds (ETFs) surged over 200 per cent in December 2025, led by a sharp rally in gold prices and on safe-haven demand for the yellow metal amid an uncertain global environment. During the month, gold ETF inflows hit a record high of Rs 11,647 crore, a jump of 211 per cent from Rs 3,741. 79 crore in November.

Higher flows resulted in the net assets under management (AUM) of gold ETFs rising to nearly 16 per cent on a month-on-month (m-o-m) basis to Rs 1. 28 lakh crore in the reporting month, according to the latest data from the Association of Mutual Funds in India (AMFI).

Indian investors have increasingly turned to gold ETFs as a regulated, liquid, and cost-efficient alternative to physical gold, particularly during periods of volatility across equity and bond markets. The steady allocation to gold ETFs, even during intermittent market swings, underscores their growing role as a strategic portfolio hedge and diversification tool. “The sharp rise in domestic gold prices over recent months has further reinforced investor confidence in gold-linked products, prompting fresh allocations into ETFs.

These inflows also reflect structural growth in the category, supported by rising folio counts and expanding assets under management as more investors incorporate gold into diversified portfolios to hedge against inflation, currency volatility, and global macro risks,” said Himanshu Srivastava, Principal Research, Morningstar Investment Research India. Besides, greater adoption of digital investment platforms and the ease of accessing gold through transparent ETF structures have aided category growth, he said.

In December 2025, inflows into equity-oriented mutual fund schemes declined 6. 2 per cent to Rs 28,054. 06 crore, as against Rs 29,911.

05 crore on a m-o-m basis. Flows into small cap funds slipped 13 per cent to Rs 3,823. 82 crore from Rs 4,406.

9 crore. Inflows into mid-cap and large-cap funds declined 7 per cent and 4.

4 per cent respectively. Flexi-cap funds continued to attract strong inflows of nearly Rs 10,000 crore. Story continues below this ad “We are also seeing investors turn selective rather than exit the market completely, with continued interest in certain equity categories.

The standout trend in December was the sharp surge in defensive allocations,” said Ankur Punj, MD – Business Head, Equirus Wealth. Debt-oriented schemes witnessed outflows to the tune of Rs 1. 32 lakh crore.

Liquid funds saw the highest outflows at Rs 47,307. 9 crore, followed by Rs 40,464. 36 crore withdrawn from money market funds.

Inflows into hybrid funds dropped to Rs 10,755. 57 crore from Rs 13,299. 2 crore in November.

Inflows through systematic investment plans (SIP) touched a record high of Rs 31,001. 67 crore in December.

The number of contributing SIP accounts stood at Rs 9. 79 crore in December 2025.