Gold ETFs see first outflow in 7 months
- The latest outflow has pulled down the assets under management (AUM) of gold ETFs to ₹13,240 crore at the end of November
After seven straight months of net inflows, gold exchange traded funds witnessed a pullout of ₹141 crore in November, data from the Association of Mutual Funds in India (Amfi) showed. This category has seen inflows since April 2020, although the pace of investment has been trending downwards since July.
Month-wise, investors put in a net ₹202 crore in January, ₹1,483 crore in February, but withdrew ₹195 crore in March on profit-booking.
Inflows resumed in April at ₹731 crore, followed by ₹815 crore in May, ₹494 crore in June, ₹921 crore in July, ₹908 crore in August, ₹597 crore in September, ₹384 crore in October, and finally an outflow of ₹141 crore last month.
Gold price came off its all-time high in the recent times after hitting a record high of ₹56,200 per 10 gram in futures market in August. Gold-backed ETFs are passive investment instruments that are based on price movements and investments in physical gold.
The latest outflow has pulled down the assets under management (AUM) of gold ETFs to ₹13,240 crore at the end of November from ₹13,969 crore at October-end.
Gold ETFs have received a net inflow of ₹6,200 crore during January-November period of the year.
Currently, gold is trading at ₹49,600 per 10 gram in futures market as optimism on COVID-19 vaccine developments led investors to opt for riskier assets such as equities.
Still, gold is up about about 25% so far this year amid unprecedented stimulus announced by central banks this year. Gold tends to gain from stimulus since it is seen as hedge against the inflation that could result from it. (With Agency Inputs)
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