Global holdings of physically-backed gold ETFs and similar products jumped by 298 tonnes during the March quarter - the highest quarterly inflows for four years
Private sector lender IndusInd Bank has caught the fancy of overseas investors
As per Amfi data, investors put in a net sum of Rs 1,613 crore in 14 gold-linked ETFs in the just concluded financial year, while they had pulled out Rs 412 crore in 2018-19.
The sharp rise, according to the WGC, was triggered by a flight to safety amid the coronavirus (Covid-19) pandemic that hit world economy hard, and plunged most global equity markets into a bear phase
Category sees highest flows since 2008, experts say investors are chasing gold-linked products due to robust trailing returns and safe-haven appeal
Hopes of further gains in the price of the previous metal could sustain inflows into gold ETFs
The board decided to bring amendments to the SEBI (Mutual Funds) Regulations, 1996, in this regard
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In January, a net amount of Rs 1.1 billion was withdrawn from the instrument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