In 2023, Gold ETFs witnessed an influx of Rs 2,920 crore, which was larger than the Rs 459 crore influx seen in 2022.
Gold ETFs, which purpose to trace the home bodily gold value, are passive funding devices which might be based mostly on gold costs and put money into gold bullion.
Gold Exchange Traded Funds (ETFs) attracted Rs 657 crore in January, marking a seven-fold bounce in comparison with the earlier month, in keeping with Amfi knowledge.
Experts imagine that the attraction of the valuable steel as a secure haven and hedge in opposition to inflation will proceed amid ongoing geo-political tensions and better inflation within the US.
The influx helped inflate the property beneath administration (AUM) of gold funds by 1.6 per cent to Rs 27,778 crore by the top of January in comparison with Rs 27,336 crore on the December-end, the Association of Mutual Funds in India (Amfi) knowledge confirmed.
The internet flows in Gold ETFs had been sharply larger at Rs 657.4 crore in January from Rs 88.3 crore within the earlier month, the information confirmed. The launch of Tata Gold Exchange Traded Fund which garnered Rs 6 crore additionally aided the expansion.
With ongoing geo-political tensions and US inflation nonetheless larger than the specified quantity, the attraction of Gold as secure haven and hedge in opposition to inflation is predicted to proceed, Melvyn Santarita, Analyst at Morningstar Investment Research India, mentioned.
“Gold prices in US Dollar terms scaled new highs after going past the USD 2,100 per ounce mark in early December 2023 but since then has come down gradually. In Rupee terms, gold has done fairly well over the last year but dwarfs in comparison to how equities have fared.
“Given this backdrop, flows in the Gold ETF category have been somewhat patchy. Some investors could be choosing to opt for a risk on approach to investing with the anticipation of a reversal in rate cycle going ahead,” he added.
In 2023, Gold ETFs witnessed an influx of Rs 2,920 crore, which was larger than the Rs 459 crore influx seen in 2022.
The attractiveness of gold as a secure haven and a hedge in opposition to inflation enhanced considerably in 2023. Rising inflation, subsequent rate of interest hikes, and geopolitical occasions boosted the demand as traders sought a safe funding possibility.
Gold, with its superlative efficiency over the previous couple of years, has garnered substantial investor curiosity and the constant improve in folio numbers serves as a testomony to its attractiveness.
During the month, the folio numbers in gold ETFs rose to 49.72 lakh in December 2023 from 49.11 lakh in December 2022. This signifies a rising inclination amongst traders in the direction of funds associated to gold.
Gold ETFs, which purpose to trace the home bodily gold value, are passive funding devices which might be based mostly on gold costs and put money into gold bullion.
Gold ETFs are items representing bodily gold which can be in paper or dematerialised kind. One gold ETF unit is the same as 1 gram of gold and is backed by bodily gold of very excessive purity. They mix the pliability of inventory investments and the simplicity of gold investments.
(This story has not been edited by News18 employees and is printed from a syndicated information company feed – PTI)
