Till October, total net inflows in Gold ETFs in 2025 crossed Rs 27,500 crore. The 10-month inflow this year is higher than the net inflows of the last five years (2020-2024) combined.
The total asset under management (AUM) of gold ETFs in India crossed Rs 1L crore mark in the first ten months of Calendar 2025. This surge, matched by a spike in new investor accounts, showed that the ETF route is becoming the preferred choice for Indian gold investors, Zerodha Fund House said in a note.  The digital only passive fund house cited gold role as a strategic long-term investment and a foundational allocation in a well-diversified portfolio and said the 2025 data tells a decisive story driven by record inflows and a price rally.

Till October, total net inflows in Gold ETFs in 2025 crossed Rs 27,500 crore. The 10-month inflow this year is higher than the net inflows of the last five years (2020-2024) combined.

"This surge indicates that investors have moved beyond physical possession and recognizing Gold ETFs as the more efficient vehicle since this modern solution not only eliminates storage hassles and making charges but also offers a tax advantage - a shorter holding period to qualify for the 12.5 per cent LTCG tax rate compared to physical gold," Zerodha said.

Zerodha said gold ETF investor folios are up by 12 times in the last five years. 

"The Gold ETF folios have gone up from 7.83 Lakhs in October 2020 to more than 95 Lakhs in October 2025. This growth is fueled by the removal of capital barriers. With unit prices for Gold ETFs now as low as approximately Rs 20, the commodity has become accessible to all investors. This empowers investors - regardless of capital - to use gold as a core tool for wealth creation, with the assurance that every unit is backed by physical gold of 99.5 per cent purity or higher," it said.

Alongside the inflow of capital, the AUM in Gold ETFs more than doubling within the span of a single year. Furthermore, Indian Gold ETFs now hold more than 83 tonnes of physical gold, with nearly a third of this reserve added in 2025 alone. This also serves as a reminder that Gold ETFs are not merely financial instruments but are also fully backed by the precious metal vaulted in storage facilities, Zerodha said.

"This tangible backing may address a primary concern of a few buyers, bridging the trust gap between digital convenience and physical storage," it said.

 As investors become more comfortable with investing in commodities in the ETF format, the acceptance is naturally extending to silver as well. 

Zerodha said since the first ETF launch in 2022, Silver ETFs have also witnessed a rising adoption across India. The total investor folios in Silver ETFs have reached more than 25 lakhs as of October 2025 with an AUM of more than Rs 40,000 crore.

Vishal Jain, CEO, Zerodha Fund House, said, “I vividly remember being part of the team that first conceptualized the idea of Gold ETFs back in 2002. It was a long road from concept to reality; when we launched in 2007, it took us nearly two and a half years just to see the AUM reach ₹1,000 crores. To see that the product category which was once an idea we believed in - has now crossed the ₹1 Lakh Crore milestone, is incredibly humbling for me. It is a heartening validation that if you offer funds that are straightforward and meaningful, they will eventually find their place in investor’s portfolios.”