Gold exchange traded funds or ETFs saw net inflows of ₹815 crore in May as investors sought safe haven options amid stock market volatility and the coronavirus crisis. According to latest data available with the Association of Mutual Funds in India (Amfi), a net sum of ₹815 crore was pumped into gold-linked ETFs in May, higher than the net ₹731 crore infused in April.
In futures markets, gold prices in India are up around 20% so far this year.
The inflows meant assets under management (AUM) of gold ETFs climbed to ₹10,102 crore at the end of May, from ₹9,198 crore at the end of April.
Gold-backed ETFs are passive investment instruments that are based on price movements and investments in physical gold.
Reflecting investor appetite for gold, which typically considered a safe-haven, in times of economic uncertainty, holdings of the world's largest gold-backed exchange-traded fund or ETF, SPDR Gold Trust , rose 0.5% to 1,135.05 tonnes on Thursday, its highest in over seven years.
"The safe haven buying into the ETFs has continued to go up. Hence the sentiment is likely to be positive on the yellow metal," said Jigar Trivedi, research analyst at Anand Rathi Shares & Stock Brokers on Gold.
Overall, mutual fund houses witnessed inflows of over ₹70,800 crore across all segments in May as compared to inflows of ₹46,000 crore in April.
The AUM of the 44-player industry climbed to ₹24.55 lakh crore by the end of May from ₹24 lakh crore at the end of April. (With Agency Inputs)