India Gold ETFs See First Outflow In Over A Year
Gold exchange-traded funds in India saw a net outflow for the first time in over a year in April, even as prices of the yellow metal touched new highs, driven by heavy central bank demand and geopolitical tensions. Investors pulled out Rs 395.7 crore from gold ETFs—passive investment instruments that are based on gold prices—in April after 12 consecutive months of inflows, according to data released by the Association of Mutual Funds in India on Thursday. The outflow was also the highest since July 2022, when Rs 456.75 crore moved out of gold ETFs.
The outflows coincided with bullion hitting life highs in mid-April, when it went past the Rs 73,000-mark in the domestic spot market, before retreating to Rs 71,000-levels. Net assets under management of gold ETFs in India stood at Rs 32,789 crore. It has jumped 62% in two years as investors increasingly turn to the proxy and tax-efficient way of investing in gold without the hassle of physically storing them.
Nippon India ETF Gold BeES, the country's top fund in the segment that manages over Rs 10,700 crore, has given a 15% return in the last one year.
Source: https://www.ndtvprofit.com/