Gold ETFs attracted ₹3,300 crore in October as investors bought more after gold prices fell. Assets under management grew to ₹1.91 lakh crore. Pankaj Mathpal said, "Avoid large lump-sum investments and accumulate gold gradually through ETFs." Many people now use these funds to add gold to their portfolios before Diwali.
Gold ETFs attracted estimated net investments of about ₹3,300 crore in October as investors stepped up purchases following a nearly 12 per cent correction in gold prices over the past six months, viewing the decline as an opportunity to accumulate the precious metal ahead of Diwali.
Assets under management (AUM) of gold ETFs increased steadily from ₹1.58 lakh crore in April to around ₹1.91 lakh crore in October, reflecting growing investor interest in the category.
The World Gold Council, in its latest quarterly outlook, expects gold demand to receive support from the ongoing festival and wedding seasons. Continued purchases by central banks, which have maintained gold accumulation at historically elevated levels, could also support prices over the next 12 months.
ETF returns
Gold ETFs have delivered an average return of 9.22 per cent since last Diwali, celebrated on October 20, 2025. Among the 22 schemes, Nippon India Gold ETF BeES led with a 12.58 per cent return, followed by Invesco Gold ETF at 12.50 per cent and ICICI Prudential Gold ETF at 12.39 per cent.
According to Value Research, the gold funds category delivered 18.64 per cent returns over one year, 31.90 per cent over three years and 23.15 per cent over five years as of October 26, 2026.
Unlike physical gold, ETFs eliminate making charges, storage costs and concerns over theft. Units are held electronically in demat accounts and can be traded on the NSE and BSE at market-linked prices. They also allow investors to accumulate gold in smaller amounts.
Pankaj Mathpal, Founder and CEO of Optima Money said the outlook for gold remained positive, supported by investment demand and expectations of a modest decline in supply. However, higher interest rates, bond yields and a stronger US dollar could cause volatility.
He advised investors to avoid large lump-sum investments and accumulate gold gradually through ETFs, treating the metal as a portfolio diversifier rather than a short-term trading opportunity.