Net inflows into gold exchange-traded funds down 34%, shows data

Investors are likely to continue to invest in gold ETFs as a means to diversify their portfolio and hold gold ETFs as a hedge against market risks

Gold exchange-traded fund (ETF) schemes offered by domestic mutual funds saw net inflows of Rs 135 crore — down 34 per cent month-on-month. In the preceding three months, investors had poured an average of Rs 500 crore each month into gold ETFs.Investor folios in gold ETFs rose to 4.6 million in June, compared with 4.5 million in May. In June, industry players had expected sharper inflows into gold to soar as equity markets tumbled. 

In June, domestic gold prices fell marginally, while the benchmark Sensex declined nearly 5 per cent. On a year-to-date basis, domestic gold prices have risen 6 per