The Gold Exchange-Treded Fund (ETF) saw a net arrival of ₹ 1,979.84 crore in February 2025, which is much lower than a section of ₹ 3,751.42 crore in January.

The decline was mainly due to booking of profit as gold prices had increased by a high time last month.

Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India, said many investors shut down, reducing fresh allocation.

“Equity market reforms also presented opportunities to buy attractive, inspired some investors to shift the focus from Gold ETF to equity,” he said.

The expectation of the interest rate cut by global central banks has further reduced urgency for secure-heaven investments such as gold.

Despite the recession, Meshram insisted that gold remains an essential portfolio diverse.

“With global economic uncertainty, gold will continue working as a hedge against market volatility,” he said.

Ajay Garg, CEO of SMC Global Securities, highlighted that when Inflow declined, the average assets under the management (AAUM) for Gold ETF increased by 15% to 15 55,001.75 crore.

The comprehensive mutual fund industry watched the mixed investor Bhavna in February.

The Equity Mutual Fund, reflecting alert investor behavior amid global uncertainties, recorded a downfall of 26% from January.

The number of mutual fund schemes with 28 new launch during the month increased to 1,739.

The head of the distribution and strategic coalition, Suranjana Borthakur, Mirre Asset Investment Managers (India) said that despite the decline in arrival, Gold ETFs remain a favorite investment during unstable time.

He said, “Gold’s safe-hovel appeal continues to attract investors, even if other asset classes provide hypnotic opportunities,” he said.