India gold ETF outflows rise to $61 million in May as HDFC tightens investment limits

In May, Indian gold exchange‑traded funds recorded a net outflow of $61 million, marking the first month of withdrawals in more than a year. The biggest single outflow was from Nippon India ETF Gold BeES, which saw $110 million leave the fund. Other notable exits included Tata Gold ETF ($28.24 million) and Kotak Gold ETF ($9.2 million). A few funds attracted inflows, led by HSBC Gold ETF with $61.5 million, followed by ICICI Prudential Gold iWIN ETF and DSP Gold ETF, each gaining about $11 million.

Globally, gold ETFs saw mixed flows: Europe recorded a net inflow of $334 million, while North America and Asia posted outflows of $1.1 billion and $1.2 billion respectively, driven largely by Chinese investors shifting to equities. The shift in India coincided with a broader move toward risk assets amid falling gold prices.

Separately, HDFC Mutual Fund announced temporary curbs on its gold ETF schemes. Effective June 8, 2026, the fund will stop accepting direct subscriptions of at least ₹25 crore from large investors and will limit lump‑sum purchases and switch‑ins to ₹10 lakh per PAN per month. The restrictions aim to manage heightened demand for gold‑linked assets amid economic and market volatility.