Inflow into Gold ETFs drop to Rs 175 crore in September
Gold Exchange Traded Funds (ETFs) also decreased in the period under review, as per the data from the Association of Mutual Funds in India (Amfi).
«With a continued hike in interest rates in the US, inflation still higher than expectations, and the growth rate slowing down, the appeal of gold as a safe haven and hedge against inflation is expected to continue,» Melvyn Santarita, analyst and manager of research at Morningstar Investment Adviser India, said.
According to the data, gold-linked ETFs saw an inflow of Rs 175.3 crore last month as compared to Rs 1,028 crore in August.
The inflow stood at Rs 456 crore in July.
Prior to that, Gold ETFs saw an inflow to the tune of Rs 298 crore during the April-June period after three quarters of consecutive outflow.
The category saw a withdrawal of Rs 1,243 crore in the March quarter, Rs 320 crore in the December quarter, and Rs 165 crore in the September quarter.
In August this year, Gold ETFs recorded the highest monthly inflow into Gold ETFs since April 2022, when the category attracted Rs 1,100 crore amid the Russia-Ukraine war.
«Gold prices in recent times have come off from their all-time high levels, thereby providing some buying opportunity, particularly after the sharp rally they witnessed since March this year,» Santarita said.
Gold, with its superlative performance over the last few years, has attracted significant investor interest, and the consistent surge in its folio numbers is a testimony to the same.
Investor accounts in gold ETFs climbed by nearly 11,000 folios to 48.06 lakh in September from 47.95 lakh in the preceding month.
This shows that investors have become more inclined toward gold-related funds. However, the assets under management of Gold ETFs
