Gold and silver ETFs from Nippon India Mutual Fund, the largest in the category, alone recorded a combined volume of Rs 228 crore
Investors with a short- to medium-term investment horizon may consider investment through gold ETFs
Inflows in Gold Exchange Traded Funds (ETFs) witnessed a surge in the current calendar year, amid gains in yellow metal prices ahead of Dhanteras. Inflows into these funds have increased by nearly 88 per cent since the beginning of 2024, totalling Rs 1,232.99 crore in September, ICRA Analytics said in a statement. Gold prices advanced Rs 450 to hit another record of Rs 79,350 per 10 gram in the national capital on Thursday on the back of continued buying by jewellers and stockists, according to the All India Sarafa Association. Investors are drawn to gold ETFs due to their liquidity, transparency and global price alignment, which remains firm due to geopolitical headwinds. Concerns about physical gold storage, purity and theft have also contributed to the growing interest in such funds, ICRA said. According to ICRA Analytics Senior Vice President and Head Market Data, Ashwini Kumar, the US Federal Reserve's potential interest rate cut in the coming months is further boosting the .
UBS analysts have raised gold's target to $2,750 per oz by end-2024 (from $2,600 per oz), $2,850 per oz by mid-2025 (from $2,700 per oz), and $2,900 per oz by end-3Q25 (from $2,750 per oz)
Adjusted for fall in NAV, AUM of gold ETFs remain unaffected
WGC defines gold ETFs as regulated securities that hold gold in physical form. These include open-ended funds traded on regulated exchanges and other regulated products like closed-end funds and MFs
On the other hand, gold prices have seen a rise in the last few months amid steady demand, especially from the global central banks
In Delhi, Bengaluru, and Chennai, the price of ten grams of 22-carat gold stood at Rs 66,540, Rs 66,390, and Rs 66,540, respectively
Gold Exchange Traded Fund (ETF) witness a net outflow of Rs 396 crore last month, making it the first withdrawal after March 2023, owing to profit booking. Despite the decline, the asset under management (AUM) of gold funds rose 5 per cent to Rs 32,789 crore at April-end from Rs 31,224 crore in the preceding month, according to the data with the Association of Mutual Funds in India (Amfi). As per the data, Gold ETFs saw a net withdrawal of Rs 396 crore in April as compared to an inflow of Rs 373 crore in the preceding month. The last time this asset class witnessed net outflow was in March 2023, withdrawing Rs 266 crore. "In INR terms, gold has done fairly well over the last year but dwarfs in comparison to how equities have fared. Given this backdrop, flows in the Gold ETF category have been somewhat patchy relative to the equity asset class. That said, investors could have opted to book some profits in this segment which has resulted in the asset class witnessing net outflows ...
Gold exchange-traded funds (ETFs), considered a safe haven during uncertain times, continue to glitter as they received a net inflow of Rs 103 crore in May. The development comes after a net inflow of Rs 124 crore witnessed in the asset class in April. Before that, investors withdrew Rs 266 crore from Gold ETFs in March, data from the Association of Mutual Funds in India (Amfi) showed. The slightly low inflow in May compared to the preceding month could be attributed to profit booking. Gold price came off its highs towards the second half of May on the back of positive news with regards to the US government raising the debt ceiling, thereby providing some buying opportunity, particularly after a sharp rally it witnessed since March this year, Melvyn Santarita, Analyst-Manager Research, Morningstar India, said. "With gold prices still trading at high levels, some investors would have chosen to book profits or take on risk on approach with a view that central banks would pause furthe
Returns, however, beat other asset classes
Between October 2021 and September 2022, gold prices rose over 9.5 per cent even as ETF inflows shrunk to a half
Gifts from employer become taxable once their value exceeds Rs 5,000; bonus is also taxable
At a time when there are many risks and uncertainties in the global economy, a 20 per cent allocation to gold ETFs in an investment portfolio during Diwali is ideal, said Quantum AMC
The latest bout of outflows come amid a sharp surge in the equity markets
IIBX has the potential to ease the hassle involved in importing precious metals
Typically, July - September is a seasonally weak period for gold demand due to monsoons and inauspicious periods like Pitru-Paksha when buyers usually prefer to postpone gold purchases
The total demand stood at 894.4 tonnes during the third quarter of 2020, WGC's Q3 Gold Demand Trends 2021 report said on Thursday.
Total flows this year reach Rs 6,341 crore
The category received inflows of Rs 597 crore in September, taking its year-to-date total to Rs 5,957 crore