More money came into Gold ETFs than equity funds, with investors betting ₹24,039 crore in January; see figures

News Topical, Digital Desk : In the first month of 2026, Indian investors invested more in gold ETFs than in equity mutual funds. In January, gold ETFs saw investments of ₹24,040 crore, up from ₹11,647 crore in December. This represents a 100% month-on-month increase. Equity mutual funds, meanwhile, saw investments of ₹24,029 crore in January 2026, making gold ETFs the largest inflow segment within the equity-linked category.

Investment in Gold ETFs increased due to the rise in gold prices.

Last month, gold reached a record high, double its January 2024 level in dollar terms. This is why people have invested heavily in gold ETFs. Gold ETFs are easier to buy and hold than physical gold, and India is one of the world's largest markets for this metal. You can easily buy them through brokerage platforms in just a few minutes.

"We saw a lot of volatility in the markets in January, especially due to the US government's intervention in Venezuela and the imposition of new tariffs," said Venkat Chalasani, chief executive of the Association of Mutual Funds in India (AMFI).

Net inflows into Indian equity mutual funds fell 14.35% month-on-month to 24,028.59 billion won, marking the second consecutive month of decline. Meanwhile, flows into gold exchange-traded funds more than doubled from the previous month to 24,039.96 billion won, allowing them to slightly outpace equity inflows for the first time, AMFI data showed.

Gold ETF holdings hit a three-year high

Even after a price drop last week, gold ETF holdings worldwide remain near three-year highs, as the rally was driven by concerns about geopolitical risks and waning confidence in sovereign bonds and currencies.

In India, these global forces are bolstered by the metal's deep cultural ties and the relatively weak performance of local equities compared to regional peers, further supporting investment.

Equity mutual funds have seen steady monthly inflows since February 2021, driven by systematic investment plans (SIPs), government reforms, and supportive central bank policies. This steady inflow of domestic money has helped the market recover from persistent foreign selling and fueled a post-COVID rally in stocks. 

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