Gold ETFs see inflows slow to ₹2,266 crore in March, silver funds slip into outflows

Gold exchange-traded funds (ETFs) saw a moderation in inflows in March 2026, even as investor interest in gold as a diversification tool remained intact amid ongoing market uncertainty.

Gold ETFs recorded net inflows of ₹2,266 crore in March, sharply lower than ₹5,255 crore in February, marking a decline of about 57%.

The slowdown came after strong inflows earlier in the year, including ₹24,040 crore in January.
According to Nehal Meshram, Senior Analyst at Morningstar Investment Research India, the moderation in inflows reflects both a cooling after an unusually strong January and some easing in fresh allocations.
She noted that earlier inflows were supported by heightened risk aversion, portfolio rebalancing, and strong momentum in gold prices, which made subsequent monthly flows appear relatively softer.

Despite the sequential decline, Meshram highlighted that March inflows remained positive, stressing continued investor preference for gold ETFs as a diversification and macro-hedge instrument amid volatility. She added that gold ETFs continue to offer a liquid and transparent alternative to physical gold, supporting their steady adoption in portfolio allocations.

On a quarterly basis, gold ETF inflows stood at ₹31,561 crore in Q1 2026, indicating that while monthly flows have moderated, overall demand for gold-backed products remains strong.

In contrast, silver ETFs witnessed net outflows of ₹683 crore during March, with assets under management declining significantly due to negative mark-to-market movements, reflecting pressure in the underlying metal.

Meanwhile, broader ETF categories saw strong traction, with other ETFs recording inflows of ₹19,802.41 crore in March, sharply higher than ₹4,487.15 crore in February. Index funds also continued to attract steady participation, logging inflows of ₹8,168.76 crore during the month.