Gold ETFs Surge with Renewed Investor Interest in Uncertain Times
Following a dip, Gold ETFs saw a Rs 292 crore net inflow in May, driven by stable gold prices and global uncertainties. The assets under management increased significantly, reflecting a cautious return to gold investment due to its strategic hedge properties and negative correlation to equities.
- Country:
- India
After two months of decline, Gold Exchange Traded Fund (ETF) experienced a significant net inflow of Rs 292 crore in May. This uptick was fueled by consistent gold pricing and ongoing global uncertainties that boost the allure of gold as a strategic investment hedge.
As per the Association of Mutual Funds in India (Amfi), the total assets under management for Gold ETFs expanded to Rs 62,453 crore in May, up from Rs 61,422 crore in April. This bounce back in investor interest suggests a gradual return to gold, driven by its reputation as a stable investment asset.
Analysts note that gold's negative correlation to equities makes it an ideal addition to diversified portfolios, especially as investors recognize the long-term benefits of gold in navigating economic uncertainties. As interest in Gold ETFs grows, folio numbers increased, indicating a shifting tide towards gold-backed investment funds.
(With inputs from agencies.)
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