In FY26, gold exchange-traded funds (ETFs) experienced unprecedented net inflows of ₹68,867 crore (approximately $8.3 billion USD), a staggering 364% increase compared to the previous fiscal year. This growth lifted gold ETFs' share of overall mutual fund inflows to nearly 10%, significantly surpassing the historical range of 1-3%. The surge in inflows was primarily driven by rising gold prices, which increased by 63% to nearly ₹1.5 lakh per 10 grams by March 31, 2026, amid heightened global geopolitical tensions. In contrast, traditional equity and debt funds faced significant declines, with inflows dropping 84% and 17%, respectively. The volatility in the stock market, highlighted by a 5% decline in the BSE Sensex over the fiscal year, prompted investors to seek safer investments in gold ETFs, particularly in the fourth quarter, which saw the highest quarterly inflow of ₹31,561 crore. Vikram Dhawan, commodities head at Nippon India Mutual Fund, noted that investment and jewelry demand for gold often move in opposite directions during price spikes, further influencing market dynamics.