Shorter LTCG holding period seen boosting gold exchange traded-fund inflows

Strong outlook for gold, absence of SGB issuances also among factors

Inflows into gold exchange-traded funds (ETFs),  which manage a total of  Rs 37,390 crore, have surged sharply in recent months. This trend is likely to continue, especially after the reintroduction of long-term capital gains tax (LTCG), which is likely to attract smart money into mutual fund offerings amid a robust outlook for the yellow metal.

Smart money, also known as opportunistic flows, refers to strategic investments that are generally of a short-term horizon.

"The shorter holding period makes gold ETFs more relevant for the section of investors who are looking to buy and sell over a short