Those who desire liquidity should opt for a gold ETF having low expense ratio and high volume
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
Use current correction to build a 10-15% allocation to yellow metal
In August, gold ETFs logged outflows of Rs 38 crore, extending their two-month outflows to nearly Rs 500 crore
The latest bout of outflows come amid a sharp surge in the equity markets
Gold Exchange Traded Funds (ETFs) witnessed a net outflow of Rs 457 crore in July as investors parked their money in other asset classes as part of their portfolio rebalancing strategy.
It may underperform in the near term, but could bounce back if fears of a US recession gain ground
But the quantum of inflows, at Rs 203 crore, was much lower than the Rs 1,100 crore seen in April
The category's net assets under management at the end of March stood at Rs 19,280 crore
In the past one month, silver funds have returned 7.34%, gold funds on an average are up by about 6%. In comparison, Nifty is down 4%
The global recovery and improved investor sentiment resulted in gold ETF flows sobering down in 2021 compared to the pandemic year.
Gold ETFs continue to attract investor attention and have garnered net assets worth Rs 683 crore in November
Amid a global surge in inflation and rising crude oil prices, markets expect central banks to hike interest rates sooner than expected
Gold exchange-traded funds (ETFs) continue to attract investor attention as they garnered net assets worth Rs 303 crore in October due to festive season demand. This was, however, lower than the net inflow of Rs 446 crore seen in September. Before this, the segment saw a net inflow of Rs 24 crore in the previous month, data with Association of Mutual Funds in India (Amfi) showed. "Gold ETFs saw a faithful inflow during October too of about Rs 303 crore. As expected, the festivities kept the asset class in demand. Gold sale level this Dhanteras at 50 tonnes was almost 20 tonnes more than the 2019 Dhanteras," Priti Rathi Gupta, founder, LXME, said. Investors might have chosen to buy physical gold given October is a festive month, Himanshu Srivastava, Associate Director Manager Research, Morningstar India, said. "The lower quantum of net inflow in October compared to the previous month could be attributed to the surge in gold prices in October that could have held investors back from
With this, gold ETF category has received a net inflow of Rs 3,515 crore so far. The segment witnessed just one month of net outflows, which was in July.
It can act as hedge against high inflation or slowdown
The data from Association of Mutual Funds in India (Amfi) shows that gold ETFs saw net inflows of Rs 446 crore in September
Sebi has approved guidelines for setting up of spot gold exchanges. Let us take a look at how the exchange would work and how it compares with other gold instruments
But those seeking greater safety should stick to SGBs or gold ETFs
After witnessing net outflow in July, gold exchange-traded funds (ETFs) attracted Rs 24 crore in August on a positive global outlook, reflecting an improving sentiment towards the yellow metal.