Page 32 - Bullion World Volume 5 Issue 1 January 2025
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Bullion World | Volume 5 | Issue 01 | January 2025
Challenges and Opportunities:
• Price Volatility: Gold ETFs are subject to the volatility of global gold prices, which can be influenced by factors
like geopolitical tensions, inflation, and currency movements. This presents both risks and opportunities for
investors.
• Awareness and Education: While Gold ETFs offer many benefits, there is still a need for greater awareness
and education among Indian investors about how they work and their advantages over traditional physical gold
investments.
• Increased Competition: As more AMCs enter the market, competition is increasing, which could lead to lower
expense ratios and better services for investors.
Trends of Asset under Management of Gold ETFs in India- A Historical Perspective
Source: IGPC/ Note: For FY 2024-2025 data up to November 2024
Conclusion:
The Gold ETF market in India is poised for further growth, with increasing
adoption from retail and institutional investors. With regulatory support,
market liquidity, and the rising appeal of gold as a financial asset, Gold
ETFs provide a convenient and efficient way for Indian investors to gain
exposure to gold while diversifying their portfolios.
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