Gold mutual funds hit by fall in prices, DSP World Gold Fund down 7% in a day

Gold mutual funds have been hit hard due to a continuous fall in prices of the yellow metal in the last two sessions. The daily Net Asset Value (NAV) of DSP World Gold Fund fell down by 7.31% in a single day as on August 11. Gold mutual funds have fallen by upto 3.35% in one day. Gold prices have fallen by ₹4,500 in the last two days. Last week, gold prices in India jumped to the record highs of over ₹56,000 per 10 grams. There are a total of 21 gold mutual fund schemes in India including Gold Exchange Traded Funds (Gold ETFs).

DSP World Gold Fund is an open ended fund of fund scheme investing in BlackRock Global Funds – World Gold Fund. The scheme manages assets worth ₹772 crore.

Among the gold funds, IDBI Gold Fund took the maximum hit in its one day NAV among the gold funds. The NAV fell by 3.36% as on August 11, shows data from Value Research. Kotak Gold Fund and HDFC Gold Fund followed, by falling 2.6% and 2.3% respectively. See the table below for the list of schemes and fall in their one day NAV.

On an average the gold mutual funds fell by around 2% in one day. Gold mutual funds have remained on top of the charts on the basis of performance for few months now. Eye-popping double-digit returns of close to 50% in one year attracted many investors to the category.

Acording to data from Amfi, investors have infused over ₹1,600 crore in gold exchange-traded funds (ETFs) in 2019-20, after pulling out money for the last six financial years, as the coronavirus outbreak spurred safe-haven buying. In July, gold ETFs saw net inflows of ₹921 crore compared to ₹494 crore in June, registering a growth of over 86%.

Gold funds and their fall in NAV in a single day