Gold ETFs see record ₹24,040 cr inflows in Jan; debt funds attract ₹74,827 cr: AMFI

Gold exchange-traded funds (ETFs) witnessed a sharp surge in inflows in January 2026, attracting ₹24,040 crore - more than double December’s previous record high of ₹11,647 crore, according to the latest data released by the Association of Mutual Funds in India (AMFI).

The surge in flows comes amid an unprecedented rally in gold prices. The yellow metal extended its record-setting momentum from 2025 into early 2026, with global spot gold touching an all-time high of around $5,101 per ounce on January 29, 2026. In India, 24-carat gold also scaled record levels, with MCX futures crossing ₹1.82 lakh per 10 grams by the end of January.

The strong demand for gold ETFs highlights the metal’s rising appeal as a safe-haven and portfolio diversification tool, particularly against the backdrop of stock market volatility, geopolitical tensions, and global trade conflicts.

The spike in gold ETF investments also coincides with the annual portfolio rebalancing period, as investors seek protection against equity market fluctuations, inflationary pressures, currency volatility, and persistent global macroeconomic uncertainties, said Nehal Meshram, Senior Analyst at Morningstar Investment Research India.

According to Meshram, the strong inflows indicate more than just tactical positioning by investors.

“Gold ETFs continue to benefit from their positioning as a regulated, liquid, and cost-efficient way to hold gold compared with physical formats,” she said. Meshram added that the January spike reinforces gold’s growing role as a portfolio stabiliser during uncertain macroeconomic phases.

Market experts believe the strong inflows into gold are also influencing broader asset allocation strategies. Anand Vardarajan, Chief Business Officer at Tata Asset Management, said investor interest in precious metals is increasingly spilling over into multi-asset allocation funds.

“Multi-asset funds have benefited from increased investor interest in precious metals, as investors look to diversify asset allocation in volatile markets,” he said.

Gold ETF inflows in January pushed the financial year-to-date tally to nearly ₹61,000 crore, marking one of the strongest growth phases for the category.

Umesh Sharma, CIO – Debt, The Wealth Company Mutual Fund, noted that gold and multi-asset categories have continued to attract strong investor interest, driven by the superior one-year performance of gold and silver relative to other major asset classes. Their sustained outperformance, he said, has supported steady expansion in assets under management, reinforcing these segments as preferred diversification avenues amid volatile market conditions.

Debt MFs stage a strong comeback

While gold stole the spotlight, debt mutual funds staged a notable comeback after a bruising December. Debt-oriented categories recorded net inflows of ₹74,827 crore in January, reversing outflows of ₹1.32 lakh crore in the previous month. The turnaround, however, was largely driven by liquidity normalisation rather than a decisive shift towards longer-duration strategies.

Meshram explained that the rebound reflects post year-end cash redeployment by corporate and institutional investors. “Overnight funds attracted ₹46,280 crore, liquid funds saw inflows of ₹30,682 crore, and money market funds gathered ₹12,763 crore, consistent with a normalization of treasury activity after December’s balance-sheet and tax-related adjustments,” he said.

That preference for the short end of the curve remains strong. Low-duration funds recorded inflows of ₹4,779 crore, while corporate bond funds saw outflows of ₹11,473 crore, alongside redemptions from dynamic bond, gilt, and long-duration categories. The pattern suggests investors are staying cautious on extending duration until clearer signals emerge on policy and yield trajectories.

“Due to sharp yield movements, investors are clearly staying in liquid funds and shorter-maturity products such as ultra-short and money market funds,” Vardarajan added.

Equity MF inflows drop 14%

Equity mutual funds, meanwhile, witnessed a decline in inflows amid heightened market volatility, falling 14% month-on-month to ₹24,028 crore. On a year-on-year basis, equity inflows in January declined nearly 39% compared with ₹39,687 crore recorded in January 2025.

Varun Gupta, CEO of Groww Mutual Fund, pointed out that mutual fund assets under management (AUM) expanded in January even as markets swung sharply. “All open-ended scheme segments recorded net inflows, with equity categories seeing positive flows across the board—highlighting the growing discipline and long-term orientation of Indian investors,” he said.

Category-wise, flexi-cap funds led equity inflows at around ₹7,700 crore, followed by mid-cap and large-and-mid-cap funds at approximately ₹3,200 crore each. The trend indicates selective risk-taking rather than broad-based exuberance, with investors balancing growth opportunities against near-term uncertainty.

Monthly SIP inflows crossed ₹31,000 crore

SIP contributions emerged as a key support for the mutual fund industry. Monthly SIP inflows crossed ₹31,000 crore, cumulative SIP assets moved beyond ₹16.6 lakh crore, and SIPs now account for over one-fifth of total equity AUM.

Market participants say Tier-2 and Tier-3 cities are leading incremental SIP additions, underscoring the deepening and widening of India’s retail investor base.

Ankur Punj, Managing Director and Business Head at Equirus Wealth, described January’s data as a consolidation phase rather than a slowdown. “While equity inflows moderated amid volatility, overall industry flows remain resilient, with AUM growing at a strong double-digit pace year-on-year,” he said. Improving global cues, stable domestic macros, and steady retail participation are expected to support sentiment going forward.

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