GOLD ETFS BOUNCE BACK WITH RS 3,443 CRORE INFLOWS AFTER MAY'S SURPRISE OUTFLOWS

If May had raised questions about whether investors were losing interest in Gold ETFs, June's data has answered them.

After witnessing net outflows of Rs 725 crore in May, Gold ETFs attracted fresh investments worth Rs 3,443 crore in June, according to data released by the Association of Mutual Funds in India (AMFI). The sharp turnaround suggests May's outflows were more of a temporary pause than the beginning of a sustained slowdown.

The recovery comes even as investors continued putting money into equity mutual funds during the month, indicating that many continued to use gold alongside equities rather than choosing one over the other.

Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India) says, "A notable trend was the strong resurgence in ETFs and Gold ETFs. ETF inflows of over Rs 13,200 crore and Gold ETF inflows of Rs 3,443 crore point towards investors increasingly using passive products and gold as strategic portfolio allocation tools rather than tactical trades. On the debt side, liquid fund outflows remain largely seasonal, reflecting quarter-end treasury movements rather than a shift in investor sentiment, while corporate bond fund outflows also remained elevated."

May's outflows didn't last long

May stood out because it was the only month in 2026 when Gold ETFs saw investors take money out. That had sparked questions about whether the strong demand seen earlier in the year was beginning to fade.

June's numbers paint a different picture.

Investors not only returned to the category but also invested more than they did in March and April. While the inflows were nowhere near January's record Rs 24,040 crore, they suggest demand for Gold ETFs remains healthy despite the one-month interruption.

In other words, May now looks more like an exception than a change in trend.

Gold and equities attracted money together

Another interesting takeaway from June's data is that investors did not move away from gold as equity markets recovered.

Equity mutual funds attracted Rs 28,973 crore during the month, up from Rs 22,908 crore in May. At the same time, Gold ETFs also returned to positive inflows.

That suggests investors were adding exposure to both asset classes together instead of treating them as competing investment options. For many investors, gold continues to play the role of a portfolio diversifier while equities remain the primary engine for long-term growth.

Still below the highs seen at the start of the year

Although June marked a recovery, inflows are still much lower than the extraordinary levels seen at the start of 2026.

Gold ETFs had attracted a record Rs 24,040 crore in January, followed by Rs 5,255 crore in February. Flows moderated to Rs 2,266 crore in March and Rs 3,040 crore in April before slipping into outflows in May.

The June rebound therefore signals a return of investor interest, but not yet a return to the exceptionally strong demand seen earlier in the year.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

2026-07-10T10:17:30Z