Excitement! India’s 900% surge in gold ETFs is a big sign of investment change?
Jakarta, Pintu News – A remarkable phenomenon is taking place in India’s financial markets, where interest in gold is soaring and displacing the dominance of other investment instruments. In recent months, the flow of funds into gold Exchange Traded Funds (ETFs) in India has increased by 900%, setting a historical high. This marks a major shift in the investment preferences of Indians, who now favor gold over stocks. This phenomenon triggers a big question: what exactly is driving this massive shift and what are the implications for global markets?
India Buys Gold, Trillions of Rupiah Funds Flow into ETFs
India is now in the global spotlight due to the massive movement of funds into gold ETFs that reached nearly 250 billion rupees or about $3,000,000,000. This surge comes amid global economic uncertainty, with investors seeking assets that are considered safer and more stable. Interestingly, inflows into gold ETFs in India have now surpassed funds flowing into equity mutual funds, an unprecedented phenomenon.
This indicates that gold is now the new favorite amid the volatility of the stock market. Since last July, the growth of fund flows into gold ETFs in India has surged by 900%, making it the hottest investment trend at the moment. Meanwhile, funds flowing into equity mutual funds fell by 170 billion rupees, showing a major shift in investors’ asset allocation strategies.
As the world’s second-largest gold consumer, India is now strengthening its position as a major gold importer. This shift also indicates a fundamental change in the way Indians view and manage their wealth.
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Gold is the top choice amid economic uncertainty
Global economic uncertainty, ranging from inflation to exchange rate fluctuations, has prompted investors to seek refuge in more stable assets. Gold, which has been known as a safe haven, has again become a top choice amid market turmoil. Many investors in India now consider gold not only as a commodity, but also as a hedge against fiat currency risk.
This is further reinforced by the increasing demand for physical gold as well as derivative products such as gold ETFs. In addition, this trend is also influenced by declining confidence in the stock market, which is considered too volatile. Many retail investors in India have started shifting their portfolios from stocks to gold, in order to preserve wealth amidst uncertainty.
This phenomenon is also driven by volatile macroeconomic policies, where gold is perceived as a safer, shock-resistant asset. Thus, the massive shift to gold ETFs is a strong signal of changing investment behavior in India.
Ray Dalio’s View: Gold is Important for Portfolio Diversification
Ray Dalio, former CEO of Bridgewater Associates, also gave his views on the gold boom. In one of his posts on platform X, Dalio emphasized the importance of gold as part of an investment portfolio, especially as a hedge against inflation. According to Dalio, gold is not just a commodity for speculation, but also acts as the second largest foreign exchange reserve in the world.
He considers gold to have a strategic role in preserving the value of wealth amid the risks that threaten fiat currencies. Dalio also highlighted that gold has an intrinsic value that is not eroded by monetary policy or market fluctuations. As such, including gold in a portfolio is a wise move to deal with global economic uncertainty.
This view further reinforces the trend in India, where people are becoming more aware of the importance of asset diversification. Gold is increasingly seen as a must-have investment instrument, not just in India, but also in many parts of the world.
Conclusion
The surge in fund flows to gold ETFs in India by 900% is clear evidence of a major change in people’s investment behavior. This phenomenon not only impacts the domestic market, but also has the potential to influence the dynamics of the global gold market. With more and more investors turning to gold, both in physical form and ETFs, this trend is predicted to continue amid economic uncertainty. India is now a clear example of how gold is back to being king amidst the turmoil of the world’s financial markets.
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Reference
- Watcher Guru. A 900% Gold ETF Surge in This Country: Coincidence? Accessed on February 27, 2026