The safe haven asset had witnessed an outflow of Rs 730 crore, Rs 942 crore, Rs 891 crore, Rs 1,651 crore and Rs 1,815 crore in 2017, 2016, 2015, 2014 and 2013, respectively
The decline in gold prices also pushed investors to reduce holdings in ETFs
Experts attributed the inflows to sudden rally in gold prices, mainly due to uneasy trade negotiations between the US and China and lower than expected global GDP growth
Further the report noted that central banks added 156.2 tonne to reserves in Q3, falling 38 per cent in comparison to the record Q3 last year.
Data from Morningstar showed that assets under management of gold Exchange Traded Funds have been rising since April this year
Assets of gold ETFs have reduced by more than a third in the last five years to Rs 4,571 crore
14 gold-linked ETFs had witnessed a withdrawal of Rs 4.22 billion in the first seven months of 2017-18
The net outflow meant assets under management of gold funds fell 7.5 per cent in the first five months of 2018-19 to Rs 44.45 billion in August-end
Trading in gold ETF segment has been lukewarm during the last five years
In January, a net amount of Rs 1.1 billion was withdrawn from the instrument
Equity and ELSS saw an infusion of more than Rs 8,000 crore during the first quarter of 2017-18
Asset base of gold ETFs dropped to Rs 5,766 crore at end of Feb from Rs 6,346 crore in March-end
The outflow meant AUM of gold funds plunged by more than 4% during the period under review
Domestic investors are shying away from taking gold exposure via exchange traded funds (ETFs), but the popularity of equity ETFs is soaring, monthly flow data provided by sectoral body Amfi shows. Gold ETFs have seen net outflows every month, barring April, with a net outflow tally of Rs 1,371 crore for the year so far. On the other hand, equity ETFs continue to see encouraging flows, month on month. In the first nine months of 2016, equity ETFs have seen net inflows of Rs 16,400 crore compared to around Rs 2,120 crore during the same period last year. ETFs are passive investment products, which track an underlying security, such as gold, or a basket of securities such as bank index. For instance, the Nifty 50-based ETF, the most popular in the equity segment, mimics the performance of the Nifty 50 index. In the developed world, ETFs are popular investment vehicles given their low costs, and the trend is catching in India, experts say. ETFs tied to gold are losing interest as investors