The pace of investment in Gold ETFs has slowed down significantly in March 2026. According to data from the Association of Mutual Funds in India, investments in gold ETFs fell 57% to ₹2,265 crore, from ₹5,254 crore in February. At the same time, money continued to be withdrawn from silver ETFs for the second consecutive month, due to which there is pressure on this segment.
Outflow continues in silver ETF
According to AMFI, there was an outflow of ₹683 crore from silver ETFs in March, while an outflow of ₹826 crore was recorded in February. This is the second consecutive month when investors are withdrawing money from silver ETFs, which shows weak confidence in the market.
Commodity ETF performed poorly
The performance of commodity based ETFs was quite weak in March. Out of total 43 commodity ETFs, all gave negative returns. UTI Silver ETF fell the most and declined by about 14.72%.
Apart from this, a decline of more than 13% was also recorded in DSP Silver ETF, Aditya Birla SL Silver ETF, Zerodha Silver ETF and HDFC Silver ETF. Gold ETFs were also not left behind – 25 gold ETFs saw a decline of 7% to 9.5%.
Investors are still interested
According to Nehal Meshram, senior analyst at Morningstar, net inflows into gold ETFs continued in March, but its pace has become slower than before. He said that after the rapid investment in the beginning of the year, the situation is now becoming normal, but investors’ interest in gold still remains.
Pressure increased due to global reasons
Many changes were seen in global markets during March. US Federal Reserve Chair Jerome Powell indicated that interest rates may remain high for a long time due to inflationary pressure. This strengthened the dollar and increased pressure on gold and silver prices. As a result, the price of gold fell by more than 10% in a week in mid-March, while silver fell by as much as 15%.
AUM also declined
A decline was also seen in the assets under management (AUM) of gold and silver ETFs. The AUM of gold ETFs declined by nearly 6% to ₹1.71 lakh crore, while the AUM of silver ETFs fell by 13% to ₹79,805 crore.
What advice for investors?
According to Tata Mutual Fund, gold prices may remain within a limited range in the short term, but there is a possibility of a rise in it in the long term. Investors have been advised to increase investment gradually during the downturn. Be careful while investing in silver and invest in installments, because there are more fluctuations in it. Overall, March was a challenging time for commodity ETFs, but there are still opportunities for long-term investors.