Surge in Gold ETFs Amidst Broader Mutual Fund Outflows

In September, gold exchange-traded funds (ETFs) experienced a remarkable surge in investor interest, with net inflows increasing by 71.4% to Rs 4,451 crore. This growth occurred despite the broader mutual fund industry facing significant outflows of Rs 1.33 lakh crore. While debt-oriented funds saw substantial withdrawals, equity mutual funds maintained their momentum, attracting Rs 38,307 crore. Small-cap and mid-cap funds were particularly popular among investors. The article delves into the contrasting trends within the investment landscape, highlighting the resilience of gold ETFs amidst market fluctuations.

By Narendra Chaudhary Oct 12, 2026, 17:37 IST

Significant Growth in Gold ETFs

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New Delhi, Oct 12: In September, gold exchange-traded funds (ETFs) experienced a remarkable increase in investor interest, with net inflows rising by 71.4% month-over-month to reach Rs 4,451 crore, up from Rs 2,597 crore in August, as reported by the Association of Mutual Funds in India (AMFI) on Monday.

This surge in gold ETF investments occurred despite the overall mutual fund sector facing net outflows of Rs 1.33 lakh crore during the same period, reversing the net inflows of Rs 41,353 crore seen in August. The downturn was primarily attributed to substantial withdrawals from fixed-income mutual fund schemes.

Debt-oriented mutual funds were the largest contributors to these outflows, with net withdrawals escalating to Rs 1.83 lakh crore in September, a significant increase from Rs 8,127 crore in the previous month.

The substantial redemptions negatively impacted the total assets under management (AUM) in the industry, which decreased from Rs 87.08 lakh crore in August to Rs 82.64 lakh crore.

Conversely, equity mutual funds continued to thrive, attracting more investor capital. Net inflows into equity schemes rose by 30.6%, reaching Rs 38,307 crore in September, compared to Rs 29,328 crore in August.

Among the various equity categories, small-cap funds emerged as the most favored, drawing in Rs 9,039 crore, up from Rs 7,973 crore the previous month. Mid-cap funds also saw strong investor interest, with inflows of Rs 7,835 crore compared to Rs 6,989 crore in August.

Flexi-cap funds recorded net inflows of Rs 6,702 crore, an increase from Rs 5,059 crore a month prior, while sectoral and thematic funds saw their inflows rise to Rs 3,640 crore from Rs 1,713 crore.

Large-cap funds bounced back into positive territory after a month of outflows, receiving net investments of Rs 859 crore in September, compared to net outflows of Rs 1,147 crore in August.

Additionally, multi-asset allocation funds attracted Rs 3,667 crore, remaining relatively stable from Rs 3,671 crore in the previous month.

Investor engagement through systematic investment plans (SIPs) remained strong, with monthly SIP contributions reaching a record high of Rs 32,490 crore in September, slightly up from Rs 32,297 crore in August.