Gold ETFs Ignite 5% Jump in Passive Fund Assets to Rs 14 Lakh Crore

The latest AMFI data highlights a robust 5.2% month-on-month growth in passive fund assets under management (AUM), with the total crossing Rs 13.67 lakh crore in October 2025. Gold ETFs were the primary driver, attracting fresh inflows of Rs 7,743 crore after a record Rs 8,363 crore in September. Together with silver ETFs, which garnered Rs 5,342 crore, commodities constitute nearly 72% of passive fund flows, signaling investor preference for safe havens in uncertain times.

The surge also saw an 8% rise in passive investor folios, reaching 4.82 crore accounts, marking a significant adoption of index and commodity ETFs by retail investors. Equity index funds recorded steady inflows, with assets touching Rs 3.20 lakh crore, underscoring continued confidence in low-cost passive investing strategies.

Experts suggest this momentum mirrors a structural shift in the Indian investment landscape as investors diversify away from active funds to transparent, cost-effective passive instruments like gold and silver ETFs. However, caution remains as some inflows may be sentiment-driven.

Key Highlights

Passive fund AUM rose 5.2% to Rs 13.67 lakh crore in October 2025.

Gold ETFs attracted Rs 7,743 crore in inflows after a record Rs 8,363 crore in September.

Silver ETFs followed with Rs 5,342 crore inflows, jointly accounting for 72% of passive flows.

Passive investor folios increased 8% to 4.82 crore, driven by commodity and equity ETFs.

Equity index funds' AUM rose to Rs 3.20 lakh crore, fueled by retail participation.

Surge indicates growing investor trust in low-cost, diversified passive investing.

Analysts caution that part of recent inflows might be motivated by short-term market sentiment.

Source: Association of Mutual Funds in India (AMFI), Economic Times, Angel One, NiftyTrader