Gold ETFs recorded estimated net investments of Rs 3,300 crore in October as prices corrected by 12%. Optima Money CEO Pankaj Mathpal shares his investment strategy for the festive season.
The festive season traditionally shifts market attention toward precious metals, and this Diwali presents a distinct landscape. Gold prices have corrected by nearly 12% over the past six months.
This consolidation has prompted a noticeable shift in capital allocation. Investors are increasingly choosing digital avenues over physical assets to read the market's current momentum.
Gold exchange-traded funds recorded estimated net investments of around Rs 3,300 crore in October. This influx highlights a growing preference for electronic units held in demat accounts.
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Assets under management for these funds climbed from Rs 1,58,400 crore in April to Rs 1,91,000 crore by October.
The World Gold Council noted in its quarterly outlook that festive and wedding demand continues to provide support. Central banks are also maintaining reserve purchases at historically elevated levels.
22 gold ETFs deliver steady returns post correction
Since the previous Diwali on October 20, 2025, the 22 gold ETFs operating during this period delivered an average return of 9.22%.
Over a one-year timeframe, Nippon India Gold ETF BeES led the category with returns of 12.58%. Invesco Gold ETF and ICICI Prudential Gold ETF followed closely, posting returns of 12.50% and 12.39%, respectively.
Value Research data as of October 26, 2026, further illustrates this trajectory. These funds generated returns of 6.94% year-to-date, 18.64% over one year, 31.90% over three years, and 23.15% over five years.
Pankaj Mathpal, founder and CEO of Optima Money, shared his assessment.
Digital units offer transparent market exposure
“From an investor’s perspective, this is not the time to chase gold prices or make large lump-sum investments. Investors may consider accumulating gold in small quantities through Gold ETFs, keeping in mind their existing portfolio allocation, exposure to gold and long-term financial goals. Gold should primarily serve as a portfolio diversifier and hedge against uncertainty rather than an instrument for short-term speculation," Mathpal said.
Unlike physical jewellery, which carries making charges and storage risks, these funds trade directly on the NSE and BSE.
On Wednesday, gold ETFs traded higher by up to 3.25%, while silver rose 5.5%.
