Gold ETFs shine on Akshaya Tritiya as investors tap 60% one-year returns

As India celebrates Akshaya Tritiya on April 19, gold and silver exchange-traded funds (ETFs) are once again attracting investor interest as a preferred investment instrument.

Gold has surged over 60 percent and silver over 160 percent in the past year, marking one of its strongest rallies driven by geopolitical tensions, central bank buying, and steady investment demand.

“Gold’s consistent track record during Akshaya Tritiya periods emphasises its role as a reliable fundamental holding for long-term portfolio constancy,” noted the Kotak Neo gold outlook report, adding that silver, however, outpaced gold significantly, surging about 160 percent over the same period.

Here’s how futures prices of precious metals (bought and sold at a fixed price on a future date) have performed on past Akshaya Tritiyas on MCX for 10 grams of 24-karat gold and 1 kilogram of 999 silver purity.

Gold ETFs’ return across horizons

The net inflows into gold ETFs stood at $176.6 million in March 2026, adding 1.1 tonnes to holdings during the period, taking total folios to 12.1 million. The total holdings in Q1 2026 increased to 114.9 tonnes, according to Kotak Neo data.

“Investor participation remains robust with growing retail participation supported by price momentum and portfolio diversification needs. Elevated prices and market volatility have led to a balanced trend of fresh inflows and selective redemptions, signalling a more mature and dynamic investor approach toward gold ETFs,” the report stated.

Another report by ICRA Analytics shows trailing returns of 10 gold ETFs through March 31, 2026, as follows:

Currently, there are 26 Gold ETFs in the market. Of which, six were launched in 2025-26.

A quick analysis of the returns generated by gold ETFs suggests that the average 1-year returns across most of these funds range from around 58.81 percent to 62.85 percent while the 5-year CAGR returns across most of these funds range from around 25.78 percent to 26.11 percent.

“Investor preference in gold ETFs has been driven by the dual impact of global uncertainty and strong returns from gold, which reinforced its traditional role as a safe haven asset,” said Ashwini Kumar, who leads the market data team at ICRA Analytics.

He argued that gold ETFs retained investor relevance even during short-term corrections, though inflows moderated sharply in February and March 2026 amid declines in gold prices and the temporary easing of global risk aversion.

While gold ETFs present an attractive option, should investors chase the rally just because precious metals are on a sharp run-up?

First-time investors should note that investments in precious metal ETFs involve risks. It requires investors to assess volatility, tracking error, expense ratio, and other key parameters before investing. Given that gold typically rewards patience, evaluating an ETF’s short-and long-term performance is crucial to gauge its consistency and return potential.

Disclaimer: Past returns don’t guarantee future performance. Investors are advised to do their own due diligence and consult with financial advisors or registered fund managers before making any investment commitments.