Gold ETFs Shine Bright with Record Inflows Amid Market Uncertainty
In June, Gold Exchange Traded Funds attracted a record Rs 2,081 crore, marking the highest monthly inflow in five months. This surge was driven by stable gold prices, geopolitical tensions, and equity market volatility, pushing net investments in Gold ETFs over Rs 8,000 crore in H1 2023.
- Country:
- India
Gold Exchange Traded Funds (ETFs) have witnessed a remarkable resurgence, pulling in a net sum of Rs 2,081 crore in June—a record for the past five months—prompted by steady gold prices, geopolitical uncertainties, and a volatile equity market. This development comes on the heels of Rs 292 crore inflow in May, as reported by the Association of Mutual Funds in India (Amfi). Prior to this, the category had experienced minor outflows in March and April.
The notable June inflows propelled Gold ETFs' assets under management upward by almost 4%, reaching Rs 64,777 crore from Rs 62,453 crore in May. Nehal Meshram, a Senior Analyst at Morningstar Investment Research India, highlighted a sentiment shift towards gold owing to its status as a safe-haven investment amidst global uncertainties and fluctuating financial markets.
The month also saw the introduction of two new Gold ETFs, gathering Rs 41 crore, marking sustained interest and recovery in this asset class. With folio numbers rising by 2.85 lakh to 76.54 lakh, investor appetite for gold-based funds remains robust, underscoring gold's dual appeal as a stable and flexible investment option.
(With inputs from agencies.)
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