Gold ETFs See Rs 2,080 Crore Inflows In June, Highest In Five Months

Interestingly, despite rising gold prices in March and April, investors had pulled back from gold ETFs during those months, capitalizing on gains through profit booking

This marked a sharp six-fold increase compared to May’s inflows of Rs 292 crore, indicating a substantial revival in investor appetite for the yellow metal

Source : Freepik

Gold exchange-traded funds (ETFs) attracted significant investor interest in June 2025, drawing Rs 2,080.85 crore in net inflows — the highest seen in five months — as domestic gold prices hovered near all-time highs, according to data released by the Association of Mutual Funds in India (AMFI) on Wednesday.

This marked a sharp six-fold increase compared to May’s inflows of Rs 292 crore, indicating a substantial revival in investor appetite for the yellow metal.

“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.

Meshram attributed the surge to multiple factors, including persistent geopolitical tensions, robust gold prices, and turbulence in both equity and debt markets. “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,” she added.

Profit Booking In Previous Months

Interestingly, despite rising gold prices in March and April, investors had pulled back from gold ETFs during those months, capitalizing on gains through profit booking. However, the trend appears to have reversed as investors now seek refuge in gold amid increased market volatility.

Simultaneously, mutual fund investments through systematic investment plans (SIPs) hit a new milestone, with inflows reaching Rs 27,269 crore in June — a 2 per cent rise from May’s Rs 26,688 crore and the highest ever recorded.

Total AUM Hits New Peak

The mutual fund industry's assets under management (AUM) soared to a record Rs 74.41 lakh crore, surpassing Rs 72.20 lakh crore in May and Rs 69.99 lakh crore in April.

Overall mutual fund inflows stood at Rs 49,301 crore in June, up 67 per cent month-on-month from Rs 29,572 crore in May. Equity mutual funds accounted for Rs 23,587 crore of the inflow, registering a 24 per cent jump. All equity-oriented categories, except equity-linked savings schemes (ELSS), contributed to the surge.