Record Inflows in Gold ETFs Highlight Growing Investor Interest

Gold exchange-traded funds in India saw a record inflow of Rs 1,961 crore in October, a 59% increase from the previous month. This surge is attributed to the festive and marriage season, as well as expectations of rising gold prices. The inflow boosted the AUM of gold funds by 12% to Rs 44,545 crore.

Gold exchange-traded funds (ETFs) in India attracted a record inflow of Rs 1,961 crore in October, marking a significant 59% increase from the previous month. This surge, fueled by the anticipation of rising gold prices during the festive and marriage season, highlights the growing interest of investors.

Data released by the Association of Mutual Funds in India (Amfi) indicates that the inflows were over twice the Rs 841 crore witnessed in October 2023. The substantial inflow has elevated the assets under management (AUM) for gold funds by 12% to Rs 44,545 crore at the end of October, a notable increase from Rs 39,823 crore in the prior month.

Experts like Himanshu Srivastava from Morningstar Investment Research India attribute this trend to various factors, including global uncertainties and the appreciation of the dollar. As gold has become recognized as an effective diversifier and a hedge against inflation, more investors are incorporating Gold ETFs into their portfolios.

(With inputs from agencies.)