Gold ETF Investment 2026: Investment of Rs 31,561 crore in Gold ETF, got 64% return in 1 year, know things related to investment.

Business Desk – Gold ETF Investment 2026: In the first quarter (January–March) of 2026, investors invested Rs 31,561 crore in Gold Exchange Traded Funds (Gold ETFs). This is an increase of 36% compared to the December 2025 quarter. Gold ETFs had attracted a total investment of Rs 23,132 crore in the October-December quarter.

This flow of investment is almost six times more than the corresponding January-March quarter of last year. This investment figure in the first quarter of the year 2025 was only Rs 5,654 crore. Amid geopolitical tensions and market volatility, investors are increasingly placing their trust in gold as a safe-haven asset. Gold ETFs have given returns of up to 64% in the last one year.

Two main reasons to invest in Gold ETFs

Experts believe that investment inflows were exceptionally high in January, mainly due to portfolio rebalancing and rising gold prices, which ultimately boosted the overall figures for the entire quarter.

Not only has the capital invested in Gold ETFs increased, but the interest of investors has also increased rapidly. In March 2025, the number of folios (investor accounts) was 69.69 lakh, which increased to 1.24 crore by March 2026. This means that 54.28 lakh new accounts were added in just one year.

Expert Opinion: Why is digital gold becoming so popular?

Nehal Meshram, Senior Analyst, Morningstar Investment Research India, says that Gold ETFs offer investors a transparent and convenient means of investment, which is generally free from the hassles associated with holding physical gold. At times of market uncertainty, these instruments provide an additional layer of protection to the portfolio.

What is Gold ETF?

Exchange Traded Funds (ETFs) are financial instruments whose value fluctuates with the rising and falling prices of gold. Gold ETFs can be bought and sold on stock exchanges like BSE and NSE just like ordinary shares.

However, unlike real gold, when you invest in them, you do not actually get physical delivery of the metal. Whenever you want to exit this investment, you will get an amount equal to the current market price of gold at that time.

How is investment done?

To buy Gold ETF, you need to open a Demat account through your broker. Through this account, you can buy units of Gold ETFs available on NSE. The same amount will be deducted from the bank account linked to your Demat account. Gold ETF units are credited to your account two days after placing the order through your Demat account. Gold ETFs are sold only through a trading account.

Limited investment in gold is beneficial

According to experts, even if you like to invest in gold, you should still limit your investment in it. You should invest only 10 to 15% of your total investment portfolio in gold. In times of crisis, investing in gold can provide stability to your portfolio.