Record Investment of Rs 1.80 Lakh Crore in ETFs Last Financial Year Mumbai: During the financial year 2026, India witnessed a record investment of Rs 1.80 lakh crore in exchange-traded funds (ETFs), marking the highest-ever inflow in any financial year. This surpasses the previous record of Rs 83,390 crore recorded in 2022. A research report highlighted that over 55% of the total inflows into ETFs during the period were directed towards gold ETFs, reflecting a surge in investor interest in these instruments amid global uncertainties. The report noted that gold ETFs attracted more inflows compared to equity ETFs, with a total of Rs 99,280 crore flowing into gold ETFs, accounting for 55% of the overall ETF inflows. In contrast, equity ETFs saw Rs 77,000 crore in investments, representing 43% of the total. The asset under management (AUM) for gold ETFs grew significantly, increasing from Rs 59,000 crore in March 2025 to Rs 1.71 lakh crore over the next year, a 190% rise. The surge in gold ETF investments was attributed to rising gold prices and increased investor participation. The report also highlighted that silver ETFs attracted Rs 30,000 crore, while gold ETFs saw Rs 68,868 crore in inflows. The global market uncertainties prompted investors to seek safer assets, leading to higher inflows into gold and silver ETFs. Tax benefits further fueled the growth of gold and silver ETF investments. These funds offer a 12.5% long-term capital gains (LTCG) tax advantage after 12 months, compared to physical gold, which requires a 24-month holding period. The liquidity of ETFs also improved significantly, with the average daily turnover rising from Rs 237 crore in FY21 to Rs 4,200 crore between April 2025 and February 2026, a 18-fold increase.#mumbai #exchange_traded_funds #gold_etf #silver_etf #commodity_etf
Indian Investors Shift Focus from Stocks to ETFs, Breaking Records in Gold and Silver Investments The era of the stock market as the primary investment avenue for Indians is fading, with a significant shift toward exchange-traded funds (ETFs), particularly those focused on gold and silver. According to the latest financial year (FY26) data, Indian investors have poured over ₹1.81 lakh crore into ETFs, surpassing the previous record of ₹83,390 crore set in the financial year 2021-22. This marks a doubling of investments compared to the previous year, reflecting a growing preference for diversified and safer investment options. The trend highlights a broader transformation in investor behavior, as traditional stock-centric strategies are being replaced by a mix of equity and commodity-based ETFs. For instance, gold ETFs attracted ₹68,868 crore, while silver ETFs received ₹30,412 crore in FY26, collectively accounting for nearly 55% of total ETF investments. This surge in commodity ETFs is driven by factors such as rising gold prices, a search for safety amid economic uncertainties, and tax advantages. Investors in gold and silver ETFs benefit from a shorter holding period for tax exemption compared to physical gold, which requires a 24-month waiting period for long-term capital gains tax benefits. The shift is also evident in the volume of daily trading. ETF transactions, which averaged ₹237 crore per day in FY21, have surged to over ₹4,200 crore daily, with commodity ETFs contributing significantly to this growth. Notably, the record monthly investment of ₹39,000 crore in January 2026 underscores the confidence of Indian investors in navigating market fluctuations through diversified instruments.#gold_etfs #exchange_traded_funds #indian_investors #silver_etfs #vishal_jain
The article provides a comprehensive analysis of the recent trends in gold and silver prices, highlighting several key factors influencing the market. Here's a structured summary and insights: Key Points from the Article: Market Decline and Context: Gold and silver prices have experienced a decline, attributed to factors like inflation expectations, rising interest rates, and geopolitical tensions (e.g., the war mentioned in the article). Analysts suggest this decline is not a "defeat" but a "pause," indicating a temporary correction rather than a long-term trend. Role of Gold as a Safe Haven: Gold remains a preferred safe-haven asset during times of uncertainty, such as geopolitical conflicts or economic instability. Despite recent volatility, gold has seen a year-to-date increase of nearly 20%, reflecting its enduring appeal as a hedge against inflation and currency devaluation. Impact of Geopolitical Events: The war (likely referring to the Russia-Ukraine conflict or another regional conflict) has disrupted supply chains and increased demand for safe assets like gold. However, the market has become more volatile post-war, with upward momentum slowing down. Investor Behavior and ETFs: Investors are taking a breather, reducing their exposure to gold temporarily, as they seek to diversify portfolios. Exchange-traded funds (ETFs) tracking gold have seen a decline in holdings since the war began, though there has been a recent uptick in investments. Analyst Perspectives: Analyst Hebe Chen notes that the market is "taking a breath" rather than signaling a long-term downturn. The safe-haven demand for gold is still intact, but the pace of growth has slowed. Challenges for Gold: Rising interest rates make gold less attractive, as higher rates increase the opportunity cost of holding non-yielding assets like gold.#silver #gold #hebe_chen #exchange_traded_funds #russia_ukraine_conflict
