NEW DELHI
While physical gold remains a cultural favorite, digital gold is stealing the spotlight. A new report shows that Gold Exchange-Traded Funds (ETFs) have seen a massive surge, with total assets nearly tripling over the past year. By the end of March 2026, the value of these digital holdings reached a staggering ₹1.71 lakh crore, reflecting a growing trust in paperless gold.
The growth has been explosive. Just five years ago, the total investment in these funds was around ₹14,122 crore. Since then, the market has grown at an average annual rate of nearly 65 percent. Experts point to a “double pull” driving this trend: intense global uncertainty caused by geopolitical conflicts and the soaring price of gold itself. For many, digital gold has become a vital “safety net” in their financial portfolios.
In March alone, investors poured over ₹2,265 crore into these funds. This is a huge turnaround from the same time last year when investors were actually pulling money out. Although the pace of investment slowed down slightly compared to February, mainly because gold prices dipped and global tensions eased briefly, the overall interest remains incredibly high. There are now 26 different gold fund schemes for people to choose from.
Financial advisors note that digital gold is often a smarter move for those looking to make a profit. Unlike physical jewelry, which carries making charges and storage risks, ETFs are transparent, efficient, and easy to sell. While families still buy physical gold for weddings and traditions, the digital version has clearly become the preferred tool for modern Indian investors looking to protect their wealth.
