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The outflow meant asset under management (AUM) of gold funds plunged by 12 per cent to Rs 4,855 crore during the period under review, latest data with Association of Mutual Funds in India (Amfi) showed.
"Lacklustre performance by real estate and gold, and low interest rates on traditional savings instruments have contributed in pushing investor flows into equities," Bajaj Capital CEO Rahul Parikh said.
Gold ETFs are passive investment instruments that are based on price movements and investments in physical gold.
"While demand from India has traditionally buttressed gold prices globally, sound rally in the Indian equity markets in 2017 has meant that gold as an asset class has not been favoured. A strong Indian equity market may mean a sober outlook for gold," Vidya Bala, head of MF Research at FundsIndia.com said.
Going ahead, Chirag Mehta, Senior Fund Manager- Alternative Investments at Quantum AMC said: "Both investment demand and prices will rise the next time the economic and political environment inspires investors to rush even more dramatically back to gold".
"The world continues to remain in state of great disequilibrium, both with respect to the global economy and geopolitics as well. The fallout of the geopolitics globally seems to now cap the downsides in gold. Given the macroeconomic picture, gold will be a useful portfolio diversification tool and thereby helping you to reduce overall portfolio risk," he added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)