Gold ETFs saw a net outflow of Rs 5.82 crore in April after Rs 77.21 crore in March, indicating a moderation in profit booking despite soaring gold prices. AUM rose 4% month-on-month and 87% year-on-year. Experts suggest investors are re-entering selectively amid inflation and geopolitical concerns, maintaining gold’s appeal as a hedge and diversification tool despite market volatility.
Amid the surge in gold prices, Gold ETFs have witnessed outflow for the second consecutive month in April of around Rs 5.82 crore after an outflow of Rs 77.21 crore in March. The category saw a total inflow of Rs 83.03 crore in the two months.
“The reversal, though subdued in magnitude, suggests that the profit-booking phase seen in March may have run its course, with some investors selectively re-entering positions in anticipation of continued global uncertainties and structural support for gold prices,” commented Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India.
Also Read | SIP inflows climb 3% to all-time high of Rs 26,632 crore in April
Gold ETFs in April 2024 saw an outflow of Rs 395.69 crore.The net assets under management (AUM) went up by 4% on a monthly basis from Rs 58,887 crore in March to Rs 61,422 crore in April.
On a yearly basis, the AUM has surged by 87% from Rs 32,789 crore in April 2024 to Rs 61,422 crore in April 2025.
The expert attributes the improvement in net flows in April to the renewed concerns over inflationary pressures and a volatile geopolitical environment, which continue to bolster the appeal of gold as a strategic hedge.
“Moreover, gold prices stabilising towards the month end may have encouraged fresh allocations from investors seeking to capitalise on potential upside while maintaining portfolio diversification,” Nehal said.
The outflow in March was seen after 10 months of continuous inflows in the category. In April, the gold ETFs offered an average return of around 3.53%, with LIC MF Gold ETF being the top performer. The scheme gave a return of 4.55% in April, followed by Invesco India Gold ETF, which gave 4.38% in the same period.
Also Read | Equity MF inflows dip 3% to Rs 24,269 crore in April as investors turn to debt
Zerodha Gold ETF gave a 3.34% return in April. Tata Gold ETF gave the lowest return of around 2.82% in the mentioned period.
Post the performance delivered by gold ETFs in April, the expert believes that the outflows in April have not been significant, reflecting underlying confidence in gold’s long-term value proposition. “Given the backdrop of fluctuating equity markets, currency instability, and shifting monetary policy expectations globally, Gold ETFs are likely to retain a place in investor portfolios as a safe-haven asset,” Nehal said.
Amid the surge in gold prices, Gold ETFs have witnessed outflow for the second consecutive month in April of around Rs 5.82 crore after an outflow of Rs 77.21 crore in March. The category saw a total inflow of Rs 83.03 crore in the two months.
“The reversal, though subdued in magnitude, suggests that the profit-booking phase seen in March may have run its course, with some investors selectively re-entering positions in anticipation of continued global uncertainties and structural support for gold prices,” commented Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India.
Also Read | SIP inflows climb 3% to all-time high of Rs 26,632 crore in April
Gold ETFs in April 2024 saw an outflow of Rs 395.69 crore.The net assets under management (AUM) went up by 4% on a monthly basis from Rs 58,887 crore in March to Rs 61,422 crore in April.
On a yearly basis, the AUM has surged by 87% from Rs 32,789 crore in April 2024 to Rs 61,422 crore in April 2025.
The expert attributes the improvement in net flows in April to the renewed concerns over inflationary pressures and a volatile geopolitical environment, which continue to bolster the appeal of gold as a strategic hedge.
“Moreover, gold prices stabilising towards the month end may have encouraged fresh allocations from investors seeking to capitalise on potential upside while maintaining portfolio diversification,” Nehal said.
The outflow in March was seen after 10 months of continuous inflows in the category. In April, the gold ETFs offered an average return of around 3.53%, with LIC MF Gold ETF being the top performer. The scheme gave a return of 4.55% in April, followed by Invesco India Gold ETF, which gave 4.38% in the same period.
Also Read | Equity MF inflows dip 3% to Rs 24,269 crore in April as investors turn to debt
Zerodha Gold ETF gave a 3.34% return in April. Tata Gold ETF gave the lowest return of around 2.82% in the mentioned period.
Post the performance delivered by gold ETFs in April, the expert believes that the outflows in April have not been significant, reflecting underlying confidence in gold’s long-term value proposition. “Given the backdrop of fluctuating equity markets, currency instability, and shifting monetary policy expectations globally, Gold ETFs are likely to retain a place in investor portfolios as a safe-haven asset,” Nehal said.
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