Investment in gold ETF increased
In an environment of stock market fluctuations, global tension and economic uncertainty, investors’ confidence seems to be returning to gold once again. In January 2026, a record level of money has come into Gold ETFs, which clearly indicates that fund managers and big investors are shifting towards safer options to avoid risk.
In the month of January, about Rs 24,040 crore was invested in gold based exchange traded funds. This figure is more than double that of December 2025, when the inflow was around Rs 11,647 crore. This means that in just one month the pace of inflow of money into Gold ETF increased by about 106%. This is considered to be the highest inflow in recent months. Interestingly, the money that came into gold ETFs in January was almost the same as that invested in equity funds in the entire month. This makes it clear that investors are currently giving equal importance to gold as equity.
Why has the attractiveness of Gold ETF increased?
According to Nehal Meshram, Senior Analyst, Morningstar India, investors are currently giving priority to safe-haven and portfolio diversification. At the beginning of the year, investors rebalance their portfolios and are adding gold as a safe haven after the volatility of the last few months.
The biggest feature of Gold ETF is that it is a controlled, transparent and low-cost way of holding gold. No hassle of storage, no worry of purity. This is why gold ETFs are becoming a handy add-on for investors in an uncertain economic environment.
The trend was becoming since the end of 2025
Investment in gold ETFs remained average for most part of 2025, but there was a sharp jump in it in the last months of the year. The inflow in October was around Rs 7,700 crore, there was a slight slowdown in November, but the pace returned again from December. The tremendous increase in January is an indication that the strategy of investors is now clearly leaning towards gold. On the other hand, investment in index funds remained almost negligible in January 2026, which shows that investors are currently investing money in select asset classes only.
Gold’s role changed
Experts believe that the role of gold in the Indian investment portfolio is no longer temporary but is becoming more permanent. Amidst inflation concerns, rupee fluctuations and global geo-political tension, gold gives investors the assurance of stability.
However, some experts are also warning that continuously investing in gold ETFs at high prices can prove to be risky in the long run. Despite this, most fund managers believe that even though equities are important for long-term wealth creation, in the current environment gold has become an important part of the portfolio.
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