NewsNippon India Gold BeES tops as Indian gold ETFs account for nearly 5% of global inflows in 2025Nippon India Gold BeES tops as Indian gold ETFs account for nearly 5% of global inflows in 2025
Indian gold ETFs achieved remarkable success in 2025, capturing nearly 5% of global inflows and securing India's position as the third-largest market worldwide with $4.37 billion in net flows. Nippon India Gold BeES led domestic performance with $1.17 billion in net inflows and 73.84% one-year returns, ranking 15th globally. The broad-based investor participation across multiple Indian gold ETF products, including strong performances from ICICI Prudential, SBI, and HDFC offerings, reflects growing preference for regulated gold investment avenues amid macro uncertainties.
*this image is generated using AI for illustrative purposes only.
Indian gold exchange-traded funds captured significant global attention in 2025, with domestic products collectively accounting for close to 5% of worldwide net inflows and approximately 2.5% of total global assets under management. This remarkable performance positioned India as the third-largest market globally for gold ETF investments, demonstrating the growing appetite among domestic investors for regulated gold investment avenues.
Global Gold ETF Market Performance
The global gold ETF market witnessed substantial growth during calendar year 2025, with comprehensive data revealing the scale of investor interest in gold-backed securities.
| Global Metrics: | 2025 Performance |
|---|---|
| Net Inflows: | $88.55 billion |
| Total AUM: | $558.90 billion |
| Aggregate Holdings: | 4,025.40 tonnes |
| India's Global Rank: | 3rd position |
| India's Share of Inflows: | ~5% |
| India's Share of AUM: | ~2.5% |
Indian Gold ETF Market Dynamics
Indian gold ETFs collectively attracted $4.37 billion in net inflows during 2025, positioning the country behind only the United States and China in terms of absolute investment flows. By year-end, domestic gold ETFs held $14.00 billion in total assets with aggregate holdings of 95.00 tonnes, reflecting the substantial scale of Indian participation in global gold markets.
Nippon India Gold BeES Leads Domestic Performance
Nippon India Gold BeES emerged as the standout performer among Indian gold ETFs, securing the 15th position globally and leading all domestic products in terms of investor flows and asset accumulation.
| Nippon India Gold BeES Metrics: | 2025 Performance |
|---|---|
| Total Assets: | $4.38 billion |
| Net Inflows: | $1.17 billion |
| Net Demand: | 10.10 tonnes |
| Global Ranking: | 15th position |
| One-Year Returns: | 73.84% |
| Three-Year Returns: | 32.43% |
| Five-Year Returns: | 20.79% |
| Trading Price (Jan 12): | ₹116.76 (+2.77%) |
| Volume Traded: | 63.50 million units |
Vikram Dhawan, Head – Commodities and Fund Manager at Nippon India Mutual Fund, attributed the sustained investor interest to macro uncertainties and growing preference for regulated investment avenues. He emphasized that while gold and silver continue serving as portfolio diversifiers, managing short-term price volatility linked to global liquidity cycles and interest-rate expectations remains a key consideration for investors.
Performance of Other Leading Indian Gold ETFs
Several other Indian gold ETFs demonstrated strong performance during 2025, reflecting broad-based investor participation across the domestic market.
| Fund Name: | Global Rank | Assets/Holdings | Net Inflows |
|---|---|---|---|
| ICICI Prudential Gold iWIN ETF: | 22nd | $1.95 billion / 13.20 tonnes | $683 million |
| SBI Gold ETF: | 26th | >₹17,000 crore | Consistent inflows |
| HDFC Gold ETF: | 25th | >₹17,000 crore | Consistent inflows |
Both SBI Gold ETF and HDFC Gold ETF delivered one-year returns in the range of 73-74%, demonstrating consistent performance across major Indian gold ETF products. Mid-sized products including Kotak Gold ETF, Axis Gold ETF, Zerodha Gold ETF, Mirae Asset Gold ETF, DSP Gold ETF, UTI Gold ETF, Aditya Birla Sun Life Gold ETF, and Quant Gold ETF also contributed meaningfully to domestic inflows.
Expert Perspectives on Gold ETF Investment
Market experts emphasized gold's strategic role as a portfolio hedge rather than a growth asset, with ETFs providing superior efficiency and cost-effectiveness compared to physical gold investments. Himanshu Shrivastava from Morningstar noted that Indian investors have increasingly adopted gold ETFs as a regulated and liquid alternative to physical gold, particularly during periods of volatility across equity and bond markets.
Shweta Rajani, Head – Mutual Funds at Anand Rathi Wealth, explained that investors must understand gold's fundamental nature as a hedge against inflation, geopolitical risks, and global uncertainties. She cautioned that gold experiences cycles similar to equity markets and emphasized that ETFs represent the most efficient investment method, avoiding storage issues and costs while remaining cheaper than fund-of-funds structures.
16
