India’s physically backed gold exchange-traded funds (ETFs) have achieved a historic milestone, with assets under management (AUM) reaching $10 billion as of September 2025, according to the World Gold Council (WGC). This marks a 23% increase quarter-on-quarter and follows a record $902 million in September inflows—the highest monthly figure in Asia—pushing year-to-date (YTD) inflows to $2.18 billion, surpassing all previous annual totals. For investors, gold market enthusiasts, and financial planners searching India gold ETFs $10 billion AUM, gold ETF inflows September 2025, or best gold ETFs India 2025, this boom—driven by a weaker rupee, geopolitical tensions, and stock market volatility—signals a shift from physical gold to digital alternatives, with holdings rising 6% to 3,838 tonnes globally. Corporate investments now account for 61.4% of AUM, up from prior years, underscoring institutional confidence in gold as an inflation hedge amid Nifty 50’s 6% YTD gain.
The surge aligns with global trends, where gold ETFs saw $26 billion in Q3 inflows, but India’s $902 million September haul ranked fourth worldwide, behind the US ($10.3 billion), UK ($2.23 billion), and Switzerland ($1.09 billion).
September Inflows and YTD Surge: A Safe-Haven Rally
India’s gold ETFs attracted $902 million in September, a 285% jump from August’s $306 million, extending four consecutive months of inflows and pushing YTD totals to $2.18 billion—the highest ever. This reversed four years of $23 billion global outflows, with India’s AUM hitting $10 billion—a 23% Q/Q rise.
- Drivers: Rupee weakness (down 2% YTD), gold prices at ₹122,829/10g (up 60% YTD), and stock volatility amid US tariffs.
- Global Context: Asia’s $2.1 billion Q3 inflows led by India, China, and Japan; total global AUM $472 billion.
- Holdings: Rose 6% Q/Q to 3,838 tonnes, near 2020 peaks.
WGC’s David Tait: “India’s inflows reflect safe-haven demand amid equity weakness and geopolitical risks.”
| Period | Inflows ($M) | YTD Total ($M) | Key Factor |
|---|---|---|---|
| September 2025 | 902 | 2,180 | Record Monthly |
| Q3 2025 | N/A | N/A | Asia’s Highest |
| YTD 2025 | 2,180 | N/A | All-Time High |
Top Gold ETFs in India: Nippon Leads with 66% Returns
As of mid-2025, India’s gold ETF market exceeds ₹60,000 crore AUM, with six top funds delivering over 66% YTD returns. Nippon India ETF Gold BeES dominates with ₹23,832 crore AUM, followed by HDFC Gold ETF (₹11,379 crore) and SBI Gold ETF (₹9,506 crore).
- Nippon India ETF Gold BeES: 66% YTD return; ₹23,832 Cr AUM.
- HDFC Gold ETF: 66% return; ₹11,379 Cr AUM.
- SBI Gold ETF: 66% return; ₹9,506 Cr AUM.
Taxation: LTCG at 12.5% (held >1 year); STCG at 20% (<1 year), aligning with physical gold.
| Fund | YTD Return (%) | AUM (₹ Cr) | Expense Ratio (%) |
|---|---|---|---|
| Nippon India ETF Gold BeES | 66 | 23,832 | 0.79 |
| HDFC Gold ETF | 66 | 11,379 | 0.59 |
| SBI Gold ETF | 66 | 9,506 | 0.64 |
| ICICI Pru Gold ETF | 66 | 8,770 | 0.50 |
| Kotak Gold ETF | 66 | 8,315 | 0.55 |
Outlook: Continued Inflows Amid Global Trends
With gold prices up 60% YTD and ETF standardization proposed by SEBI, inflows could hit $3 billion by year-end. Corporate allocations (61.4% AUM) signal institutional shift from physical gold.
- Projections: $12 billion AUM by 2026; 15% CAGR.
- Risks: Rupee appreciation or equity rebound could temper demand.
Conclusion: India’s Gold ETF Boom
India’s gold ETFs hitting $10 billion AUM on $902 million September inflows is a safe-haven triumph, with 66% YTD returns and Nippon leading. As corporates pile in, it’s a digital gold rush. For portfolios, it’s diversification—will records keep breaking? The bars stack. reuters
