Gold ETFs: After attracting strong investor interest for much of the past year, Gold Exchange Traded Funds () witnessed a moderation in flows during the latest month, according to data released by the Association of Mutual Funds in India (AMFI). Gold ETFs recorded a net outflow of ₹725 crore in May, marking the first month of net redemptions after a 13-month streak of inflows.
The latest data also showed that continued to face redemption pressure, registering outflows for the fourth consecutive month. While the trend has prompted questions about whether investors are moving away from precious metals and shifting back towards equity-oriented investments, market experts believe a single month’s data should not be viewed as evidence of a structural change in investor behaviour.
In May, Gold ETFs reported a net outflow of ₹725 crore compared with a robust inflow of ₹3,040 crore in April. The last time the category recorded an outflow was in April 2025, when investors withdrew ₹5.82 crore. Silver ETFs, meanwhile, saw net outflows of ₹2,133 crore during May, significantly higher than the ₹126 crore outflow recorded in April.
Over the past four months, silver ETFs have witnessed cumulative outflows of ₹3,770 crore, with May accounting for the largest monthly redemption during the period.
Despite the outflows, returns from precious metal ETFs remained strong. Silver ETFs generated an average return of 9.59% in May. DSP Silver ETF emerged as the top performer with a return of around 9.72%, while Bandhan Silver ETF delivered the lowest return among peers at 9.42%.
Gold ETFs also delivered positive returns, with the category generating an average return of 4% during the month. offered the highest return at 4.07%, while The Wealth Company Gold ETF posted the lowest return at approximately 3.92%.
Is gold losing its shine?
Gold ETFs have enjoyed significant investor interest over the last few years as investors increasingly turned to the yellow metal as a hedge against inflation, geopolitical uncertainty and currency volatility. However, the recent outflow has sparked debate over whether investor sentiment towards gold has weakened or whether fresh inflows could return if prices cool from record highs.
According to Feroze Azeez, Joint CEO of Anand Rathi Wealth, the recent trend reflects a more practical approach by investors following the sharp rise in gold prices.
“Another interesting trend was seen in Gold ETFs, which witnessed an outflow of ₹725 crore in May. This comes after 12 consecutive months of positive inflows, during which Gold ETFs attracted more than ₹70,000 crore since May 2025,” he said.
Azeez noted that with gold prices touching record highs, government requests discouraging purchases of gold and some asset management companies stopping inflows into certain ETF schemes, investors appear to be reassessing return expectations. He added that some investors may be booking profits and reallocating capital towards other opportunities, particularly equities that have witnessed significant corrections.
Nitin Agrawal, CEO, Mutual Funds at InCred Money, also believes the latest outflow should not be interpreted as a negative signal for the asset class.
“Gold ETFs recorded a net outflow of ₹725 crore in May, a meaningful reversal after the significant inflows the category attracted through much of the gold rally. This is not a bearish signal on gold; it reflects profit-booking after a sharp price run-up,” he said.
Agrawal maintained that the long-term investment case for gold remains intact and that a measured allocation to the precious metal continues to play an important role in retail portfolios.
While the latest AMFI data points to a temporary pause in investor enthusiasm for precious metal ETFs, experts believe the broader rationale for holding gold remains unchanged. For long-term investors, they suggest focusing on portfolio diversification and asset allocation goals rather than reacting to a single month’s inflow or outflow trend.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.