Gold ETF Inflows Double to ₹24,040 Crore in January 2026, Surpass Equity Funds

India’s investors showed a clear shift towards safety in January 2026 as gold-backed exchange-traded funds (ETFs) recorded a sharp surge in inflows, overtaking equity mutual funds for the month, according to industry data.

Investor interest in gold ETFs nearly doubled on a month-on-month basis, with net inflows touching ₹24,039.96 crore in January 2026, data released by the Association of Mutual Funds of India (AMFI) showed. This marked a significant jump compared to December 2025 and reflected growing demand for safe-haven assets amid global economic and geopolitical uncertainty.

Gold ETFs Edge Past Equity Funds

The inflow into gold ETFs narrowly surpassed net investments in growth and equity-oriented mutual fund schemes, which stood at ₹24,028.59 crore during the same month. While the difference was marginal, the crossover highlights a notable change in investor behaviour, with caution temporarily outweighing growth-driven equity strategies.

Market participants say this is one of the rare instances in recent times when gold-focused investment products have outpaced equities in monthly inflows.

‘Other Schemes’ Attract Nearly ₹40,000 Crore

When combined with index funds, other ETFs, and overseas fund-of-funds (FoFs), total inflows into the ‘Other Schemes’ category reached ₹39,954.63 crore in January 2026, as per AMFI data. This indicates a broader move toward diversification, with investors spreading capital across asset classes rather than concentrating solely on stocks.

Why Investors Are Turning to Gold

Experts attribute the renewed interest in gold ETFs to several factors:

• Rising geopolitical tensions

• Persistent global market volatility

• Demand for portfolio hedging

• Increased awareness of gold’s role as a store of value

The rally in precious metals has further strengthened gold’s appeal among retail and institutional investors alike.

A Balasubramanian, Managing Director and CEO of Aditya Birla Sun Life AMC, said the recent price momentum has encouraged investors to seek exposure through ETFs.

“The recent rise in gold and silver has led to a sharp increase in demand for gold and silver ETFs as investors look for different avenues to gain exposure to precious metals. However, equities continue to remain the preferred asset class for long-term wealth creation,” he said.

Caution Advised Despite Strong Inflows

Some market strategists, however, have cautioned against aggressive allocations to gold at elevated price levels. Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital, pointed out that investors may have under-allocated to large-cap equities that are currently trading at attractive valuations.

He added that while gold ETFs offer stability during uncertain periods, long-term wealth creation still favours equities, especially when market corrections create opportunities in fundamentally strong stocks.

What This Means for Investors

The January 2026 data suggests investors are becoming increasingly risk-aware, prioritising capital protection and diversification. While equities remain central to long-term portfolios, gold ETFs are emerging as a preferred short- to medium-term hedge against uncertainty.

If global volatility persists, gold ETF inflows are likely to remain strong. However, financial experts advise investors to maintain balanced asset allocation strategies aligned with long-term financial goals rather than reacting solely to short-term market movements.