October Sparkle: India Becomes World’s Third Biggest Gold ETF Buyer

Gold ETFs in India witnessed the third-highest inflow worldwide in October 2025, behind only the United States and China, signaling a shift from physical gold to digital gold investments. According to the Economic Times and The Hindu Business Line, net inflows stood at ₹7,743 crore ($850 million) following a record ₹8,363 crore in September.

Experts attribute this sustained momentum to gold’s traditional safe-haven status amid fluctuating equity markets, inflationary pressures, and geopolitical risks. The convenience of digital platforms and fintech apps offering easy access to gold ETFs attract a younger demographic increasingly opting for tactical investment strategies.

As gold prices remained relatively range-bound, investors used gold ETFs to hedge against currency depreciation and inflation. The total assets under management (AUM) for gold ETFs crossed ₹1 lakh crore during October, reflecting rising strategic allocations.

Gold ETFs offer advantages like liquidity, ease of storage, and lower transaction costs compared to physical gold. Coupled with tax-efficient structures, these factors enhance their appeal as portfolio diversifiers.

Key Highlights:

India ranked 3rd globally in gold ETF inflows in October 2025, with ₹7,743 crore invested.

Sustained net inflows after September’s record ₹8,363 crore.

Growing investor preference for digital gold due to convenience and safety.

Gold ETFs seen as tactical hedges against inflation, currency risk, and market volatility.

Total AUM of gold ETFs crossed ₹1 lakh crore in October.

Benefits include liquidity, cost efficiency, and tax advantages over physical gold.

Sources: The Hindu Business Line, Economic Times, NDTV Profit