Gold ETF: Inflows into equity mutual fund schemes saw a record surge of 56 per cent to Rs 40,450 crore in March. This is against Rs 25,978 crore logged in February, reflecting sustained investor confidence in equities amid market volatility and West Asia triggered geopolitical tensions.
Strong participation in Flexi Cap, Mid Cap and Small Cap funds played a major role in driving the inflows. These accounted for a significant share of the total net additions.
Gold Exchange-Traded Funds
Meanwhile, gold exchange-traded funds saw inflows of Rs 2,266 crore in March, which was much lower than the Rs 5,255 crore seen in the previous month.
‘Investor interest in gold-backed products remained positive’
Slower inflows reflecting a combination of normalisation?
“The slower inflows in March likely reflect a combination of normalization after a very strong start to the year and some moderation in fresh allocations. January had seen unusually elevated inflows, likely supported by strong risk aversion, portfolio rebalancing, and momentum in gold prices, making subsequent monthly numbers look softer by comparison,” Meshram said.
Gold ETFs: metal liquid, transparent and convenient way
Even so, March’s positive flows suggest that gold continues to retain investor interest as a diversification tool amid market uncertainty and macro volatility. Gold ETFs remain appealing because they offer a metal liquid, transparent, and convenient way to gain exposure without the frictions of holding physical gold, the analyst added.
From a broader perspective, Q1 2026 inflows stood at INR 31,561 crore, indicating that despite the month-on-month slowdown, the category has had a strong quarter overall. The trend suggests that gold continues to be used both as a tactical hedge and as a strategic portfolio allocation, Meshram said.
—– Total AUM Inflow at Rs. 73.73 Lac Cr vs Rs. 82.03 Lac Cr, MoM
– Net Outflow at Rs. -239910 Cr vs Rs. 94530 Cr, MoM
– Net Equity Inflow at Rs. 40450 Cr vs Rs. 25978 Cr, MoM
– Gold ETFs Inflow at Rs. 2266 Cr vs Rs. 5255 Cr, MoM
– ETF Inflow at Rs. 19802 Cr vs Rs. 4487 Cr, MoM
– Liquid Fund Outflow at Rs. -134988 Cr vs Rs. 59077 Cr, MoM
– Corporate Bond Fund Outflow at Rs. -15293 Cr vs Rs. -2302 Cr, MoM
– Credit Risk Fund Outflow at Rs. -330 Cr vs Rs. -94 Cr, MoM
– Large Cap Fund Inflow at Rs. 2998 Cr vs Rs. 2112 Cr, MoM
– Mid Cap Fund Inflow at Rs. 6064 Cr vs Rs. 4003 Cr, MoM
– Small Cap Fund Inflow at Rs. 6264 Cr vs Rs. 3881 Cr, MoM
– Dividend Yield Fund Outflow at Rs. -59 Cr vs Rs. 21 Cr, MoM
– Sectoral/Thematic Funds Inflow at Rs. 2699 Cr vs Rs. 2987 Cr, MoM
– ELSS Fund Outflow at Rs -437 Cr vs Rs. -650 Cr, MoM
