Gold ETFs drive record Rs 40,000 crore inflows into passive funds in January; AUM touches Rs 15.41 lakh crore: AMFI

The AUM of passive funds rose 5.8% month-on-month to reach an all-time high of Rs 15.41 lakh crore in January. This achievement was driven by the highest ever net inflows of Rs 39,955 crore into the category, marking the 63rd consecutive month of positive flows.

Gold ETFs were the primary driver of this growth, attracting record inflows of Rs 24,040 crore, the highest ever for the category. Other ETFs also saw significant investor interest, with monthly inflows of Rs 15,006 crore. The surge in gold ETFs can be attributed to the rally in gold prices fuelled by geopolitical uncertainties and strong demand for safer assets.

Also Read | Samir Arora-backed Helios Flexi Cap Fund exits Ola Electric, LG Electronics and 3 other stocks in January


Silver ETFs also garnered significant investor attention, attracting inflows of Rs 9,463 crore and accounting for nearly 24% of the total flow into passive funds. This interest was driven by robust demand from industries such as electric vehicles, semiconductors, telecom and artificial intelligence.

Hybrid funds

Assets of hybrid funds were flat month-on-month at Rs 11.01 lakh crore in January, as healthy net inflows were offset by market movements. Multi-asset allocation funds topped inflows within the hybrid segment for the third consecutive month, highlighting sustained investor preference for diversified strategies.

Equity funds

The equity fund category saw net inflows for the 59th consecutive month in January, amounting to Rs 24,029 crore. However, Indian markets saw MTM losses during the month. The US government’s attempts to acquire Greenland, its intervention in Venezuela and fresh tariff threats heightened uncertainty, triggering risk-averse sentiment globally. This led to a risk-off mood in global markets and fuelled another correction in Indian markets, which were already facing the impact of persistent foreign fund outflows since mid-2025.

Within the category, flexi-cap funds saw the largest inflows for the sixth consecutive month, attracting Rs 7,672 crore, followed by mid-cap funds with Rs 3,185 crore and mid and large-cap funds with Rs 3,182 crore. Together, they accounted for 58% of the category’s total inflows.

Equity assets declined 2.4% month-on-month to Rs 34.87 lakh crore, down from Rs 35.73 lakh crore in December.

Debt funds

The AUM of open-ended debt funds rose 4.4% month-on-month to Rs 18.90 lakh crore in January from Rs 18.10 lakh crore in December 2025. The increase was primarily driven by the highest ever monthly inflows of Rs 46,280 crore in overnight funds, followed by positive flows into liquid and money market funds amid market volatility and global uncertainties.

At the start of the month, bond prices fell owing to supply-related concerns after the announcement of an ambitious Rs 5 trillion borrowing programme by the states for the fourth quarter of this fiscal year. The concerns were aggravated by the initial purchases of short-term notes by the Reserve Bank of India and reports of a weak response at auctions. Fluctuating liquidity conditions and the central bank’s preference for illiquid papers over more actively traded notes in its debt purchases also exerted pressure on bond prices.

Also Read | Largecaps record 28% jump in inflows, Midcaps and Smallcaps see sharp declines. Is safety back in focus?

SIP

SIP monthly contributions remained steady at Rs 31,002 crore in January. However, with a correction in equity markets causing MTM losses, SIP assets declined 1.6% to Rs 16.36 lakh crore, constituting approximately 20.2% of the industry’s AUM. Notably, the number of contributing active SIP accounts increased 1.3% month-on-month to 9.92 crore in January from 9.79 crore in December. This underscores investors’ faith in SIPs irrespective of market conditions.

SIF

SIF strategies attracted total positive flows of Rs 1,729 crore in January, led by inflows of Rs 1,637 crore in hybrid investment strategies. SIF assets increased 34.2% month-on-month to Rs 6,564 crore from Rs 4,892 crore in December. One hybrid long-short fund was launched during the month, mobilising Rs 38 crore.

The domestic mutual fund industry’s AUM rose 1.0% month-on-month to Rs 81.01 lakh crore in January from Rs 80.23 lakh crore in December. Fresh inflows and mark-to-market gains in the debt and passive segments were key growth drivers. The industry’s AUM grew 20.5% year-on-year and has more than doubled in three years, demonstrating remarkable growth.

US equity funds experienced significant outflows in the year ended December 2025. In contrast, US debt and money market funds saw notable inflows during the same period, indicating that investors are gravitating towards safer investment options amid heightened economic uncertainty and geopolitical tensions.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and twitter handle