Investors interest in Gold ETFs surges; attract Rs 841-cr in Oct
economictimes.indiatimes.comGold Exchange Traded Funds (ETFs), which are considered a safe haven during uncertain times, and put in Rs 841 crore in October, way higher than Rs 175 crore in the preceding month. Apart from the inflows, the asset base of Gold ETFs also surged in the period under review, as per data from the Association of Mutual Funds in India (Amfi).
Meanwhile, pre-Diwali Dhanteras buying of gold and silver in India, the world's largest gold consumer, kick-started on a positive note on Friday on recovery of consumer demand with the softening of gold prices.
«With the ongoing geo-political tensions, fear of continued hike in interest rates in the US, inflation still higher than expectations, and 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.
Moreover, Gold prices in recent times have come-off from all-time high levels, thereby providing some buying opportunity, particularly after a sharp rally it witnessed since March this year, he added.
According to the data, Gold-linked ETFs saw an inflow of Rs 841 crore last month, as compared to Rs 175.3 crore in September.
The category recorded Rs 1,028 crore in August, which was the highest monthly inflow in 16 months, and 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.
Gold, with its superlative performance over the last few years, has attracted significant
