Apart from capital inflows, the asset base of gold ETFs and the number of investor accounts or folios increased during the period under review.
As per the data, gold-linked ETFs saw an inflow of Rs 1,028 crore in August. This follows an inflow of Rs 456 crore into the segment in July.
Before this, Gold ETF recorded inflows to the tune of Rs 298 crore during the April-June period after three quarters of consecutive outflows. The category witnessed a shrinkage of Rs 1,243 crore in the March quarter, Rs 320 crore in the December quarter and Rs 165 crore in the September quarter.
August witnessed the highest monthly inflow into gold ETFs since April 2022, when the category attracted Rs 1,100 crore in the wake of the Russia-Ukraine war.
Flows into gold ETFs have been subdued since then as the US Federal Reserve embarked on its tightening cycle.
“As the end of the Fed’s tightening cycle approaches, the outlook for gold looks good. The metal has held up despite US yields and the US dollar being on an upward trajectory of late. A recession potential in the United States, central bank gold purchases, geopolitical tensions and rising US debt levels are all supporting interest in the precious metal, said Ghazal Jain, fund manager – Alternative Investments at Quantum Mutual Fund Additionally, gold prices have recently moved away from their all-time high levels, providing buying opportunities, especially after a strong rally seen since March of this year, said Melvyn Santarita, analyst – research manager at Morningstar India.
“With interest rates continuing to rise in the United States, inflation still higher than expected and the growth rate slowing, the appeal of gold as a safe haven and protection against inflation is expected to continue” , added Santarita.
Gold, with its exceptional performance over the past few years, has attracted significant investor interest and the steady rise in its portfolio numbers is a testimony to this.
Investors’ accounts in gold ETFs jumped by 20,500 folios to 47.95 lakh in August from 47.75 lakh in the previous month. This shows that investors have become more inclined to move towards gold-linked funds.
Further, assets under management of gold ETFs jumped over 4 per cent to Rs 24,318 crore in August from Rs 23,330 crore in the previous month.
Gold ETFs, which track the physical price of gold domestically, are passive investment instruments based on gold prices that invest in gold bullion. In short, Gold ETFs are units representing physical gold which can be in paper or dematerialized form.
One Gold ETF unit is equivalent to 1 gram of gold and is backed by very high purity physical gold. They combine the flexibility of investing in stocks and the simplicity of investing in gold.
Apart from capital inflows, the asset base of gold ETFs and the number of investor accounts or folios increased during the period under review.
As per the data, gold-linked ETFs saw an inflow of Rs 1,028 crore in August. This follows an inflow of Rs 456 crore into the segment in July.
Before this, Gold ETF recorded inflows to the tune of Rs 298 crore during the April-June period after three quarters of consecutive outflows. The category witnessed a shrinkage of Rs 1,243 crore in the March quarter, Rs 320 crore in the December quarter and Rs 165 crore in the September quarter.
August witnessed the highest monthly inflow into gold ETFs since April 2022, when the category attracted Rs 1,100 crore in the wake of the Russia-Ukraine war.
Flows into gold ETFs have been subdued since then as the US Federal Reserve embarked on its tightening cycle.
“As the end of the Fed’s tightening cycle approaches, the outlook for gold looks good. The metal has held up despite US yields and the US dollar being on an upward trajectory of late. A recession potential in the United States, central bank gold purchases, geopolitical tensions and rising US debt levels are all supporting interest in the precious metal, said Ghazal Jain, fund manager – Alternative Investments at Quantum Mutual Fund Additionally, gold prices have recently moved away from their all-time high levels, providing buying opportunities, especially after a strong rally seen since March of this year, said Melvyn Santarita, analyst – research manager at Morningstar India.
“With interest rates continuing to rise in the United States, inflation still higher than expected and the growth rate slowing, the appeal of gold as a safe haven and protection against inflation is expected to continue” , added Santarita.
Gold, with its exceptional performance over the past few years, has attracted significant investor interest and the steady rise in its portfolio numbers is a testimony to this.
Investors’ accounts in gold ETFs jumped by 20,500 folios to 47.95 lakh in August from 47.75 lakh in the previous month. This shows that investors have become more inclined to move towards gold-linked funds.
Further, assets under management of gold ETFs jumped over 4 per cent to Rs 24,318 crore in August from Rs 23,330 crore in the previous month.
Gold ETFs, which track the physical price of gold domestically, are passive investment instruments based on gold prices that invest in gold bullion. In short, Gold ETFs are units representing physical gold which can be in paper or dematerialized form.
One Gold ETF unit is equivalent to 1 gram of gold and is backed by very high purity physical gold. They combine the flexibility of investing in stocks and the simplicity of investing in gold.
