Gold ETF inflows jumped 71% to ₹4,451 crore in September, according to AMFI data. Investors turned to these defensive assets as market uncertainty grew. Nitin Agrawal of InCred Money said the inflows reflected demand for defensive assets amid equity market declines. Meanwhile, silver ETFs also got inflows of ₹1,974 crore.

Gold exchange-traded funds attracted ₹4,451 crore in September, marking a 71% increase from August according to AMFI data, as investors turned to defensive assets amid market uncertainty.

Gold exchange-traded funds (ETFs) attracted inflows of ₹4,451 crore in September, up 71.4% from ₹2,597 crore in August, according to data from the Association of Mutual Funds in India (AMFI).

The September inflow was the strongest monthly reading in the current cycle, according to Nitin Agrawal, CEO of Mutual Funds at InCred Money. Gold ETFs' assets under management (AUM) stood at ₹1.86 lakh crore, he said, approaching the recent all-time high.

Silver ETFs also saw inflows of ₹1,974 crore in September, according to the data.

Varun Gupta, CEO of Groww Mutual Fund, said inflows into gold ETFs were well above August levels, alongside strong inflows into equity ETFs, which attracted ₹9,960 crore during the month.

The increase in gold ETF investments came as the mutual fund industry's overall AUM declined to ₹82.64 lakh crore at the end of September from ₹87.07 lakh crore in August. The industry recorded net outflows of ₹1.33 lakh crore during September, according to Gupta, with debt funds accounting for most of the outflows.

Equity mutual fund schemes, however, continued to attract inflows, with net investments rising to ₹38,293.5 crore in September from ₹29,315 crore in August.

Agrawal said the gold ETF inflows reflected demand for defensive assets amid equity market declines and uncertainty in debt markets. He also pointed to the role of precious metals ETFs in investors' portfolios during periods of volatility.

Gold ETFs allow investors to gain exposure to gold prices through exchange-traded units without having to buy and store physical gold. Their market prices can fluctuate with gold prices, and returns are not guaranteed.