Gold ETFs see first outflow after March 2023
Mon May 13 2024
Gold exchange traded fund (ETF) witnessed a net outflow of ₹396 crore last month, making it the first withdrawal after March 2023, owing to profit booking.
Despite the decline, the asset under management (AUM) of gold funds rose 5%
to ₹32,789 crore at April-end from ₹31,224 crore in the preceding
month, according to the data with the Association of Mutual Funds in India
(Amfi).
As per the data, Gold ETFs saw a net
withdrawal of ₹396 crore in April as compared to an inflow of ₹373
crore in the preceding month.
The last time this asset class witnessed net outflow was in March 2023,
withdrawing ₹266 crore.
"In rupee terms, gold has done fairly well over the last year but dwarfs
in comparison to how equities have fared. Flows
in the gold ETF category have been patchy relative to the equity asset class.
That said, investors could have opted to book some profits in this segment
which has resulted in the asset class witnessing net outflows," Melvyn
Santarita, analyst, Morningstar Investment Research India,
said.
Source: https://economictimes.indiatimes.com/