Gold ETFs lose sheen, investors withdraw Rs 2.8 billion in Apr-Nov

Industry experts said positive returns given by the equity market have resulted in Indian investors largely staying away from investing in gold ETFs

Gold exchange-traded funds (ETFs) continue to lose steam, with investors pulling out Rs 2.8 billion during the April-November period of the current fiscal, preferring to invest in equities despite volatile markets.

In comparison, 14 gold-linked ETFs had witnessed a withdrawal of Rs 5.11 billion in the first eight months of 2017-18, the latest data from industry body Amfi showed.

The outflow razed the assets under management (AUMs) of gold funds by 11 per cent to Rs 4,385 crore at the end of November, from Rs 49.22 billion a year ago.

Gold ETF trading has been tepid during the past five financial years. It