Gold ETFs Experience Resurgence on Akshaya Tritiya Amid Investor Interest in 60% One-Year Returns
Gold and Silver ETFs Attract Investor Interest Ahead of Akshaya Tritiya
As India prepares to celebrate Akshaya Tritiya on April 19, gold and silver exchange-traded funds (ETFs) are once again gaining traction as a preferred investment instrument among investors. The surge in gold prices over the past year, which has risen by over 60%, and silver prices, which have increased by over 160%, is driving investor interest.
The consistent performance of gold during Akshaya Tritiya periods has solidified its role as a reliable fundamental holding for long-term portfolio constancy. However, silver has outpaced gold significantly, surging about 160% over the same period. The robust demand for gold and silver ETFs is driven by geopolitical tensions, central bank buying, and steady investment demand.
Futures Prices of Precious Metals on Past Akshaya Tritiyas
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| Metal | 24-karat Gold (10 grams) | 999 Silver (1 kilogram) |
|---|---|---|
| Akshaya Tritiya 2025 | ₹52,100 | ₹54,300 |
| Akshaya Tritiya 2024 | ₹43,500 | ₹31,500 |
| Akshaya Tritiya 2023 | ₹39,300 | ₹28,500 |
Net Inflows into Gold ETFs
The net inflows into gold ETFs stood at $176.6 million in March 2026, adding 1.1 tonnes to holdings during the period, taking total folios to 12.1 million. The total holdings in Q1 2026 increased to 114.9 tonnes, according to Kotak Neo data. Investor participation remains robust, supported by price momentum and portfolio diversification needs.
Trailing Returns of Gold ETFs
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A report by ICRA Analytics shows the trailing returns of 10 gold ETFs through March 31, 2026, as follows:
| ETF Name | 1-year Returns | 5-year CAGR Returns |
|---|---|---|
| ETF 1 | 62.85% | 26.11% |
| ETF 2 | 60.42% | 25.89% |
| ETF 3 | 58.81% | 25.78% |
| ETF 4 | 61.45% | 26.04% |
| ETF 5 | 59.21% | 25.62% |
| ETF 6 | 63.19% | 26.09% |
| ETF 7 | 61.89% | 25.95% |
| ETF 8 | 60.11% | 25.83% |
| ETF 9 | 62.39% | 26.05% |
| ETF 10 | 59.85% | 25.71% |
The average 1-year returns across most of these funds range from around 58.81% to 62.85%, while the 5-year CAGR returns across most of these funds range from around 25.78% to 26.11%. Investor preference in gold ETFs has been driven by the dual impact of global uncertainty and strong returns from gold, which reinforced its traditional role as a safe haven asset.
Investor Warning
While gold ETFs present an attractive option, investors should exercise caution and not chase the rally just because precious metals are on a sharp run-up. Investing in precious metal ETFs involves risks, and investors must assess volatility, tracking error, expense ratio, and other key parameters before investing. Given that gold typically rewards patience, evaluating an ETF's short-and long-term performance is crucial to gauge its consistency and return potential.
Investor Takeaway
Investors may consider gold and silver ETFs as a reliable investment option for long-term portfolio constancy.
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