Gold ETF witness high redemptions, low inflows in June

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Gold ETF witness high redemptions, low inflows in June
Gold ETFs saw the highest ever monthly outflow Rs 2,300 crore in June 2012, as per AMFI. Assets under management of  gold ETFs dropped by 2.2% to Rs 10,100 crore in June over the corresponding period of the previous month.

Gold prices have recently surged to Rs 30,000, which has tempted investors to book profits and volatility in currency has also helped gains.

Gold prices as represented by the CRISIL Gold Index have risen 34 per cent in the one-year period ended June 29, 2012. 

Meanwhile, money market funds witnessed outflows of Rs 25,128 crore, while  equity funds saw an outflow of Rs 186 crore.

Analysts believe that these outflows are due to quarter-ending phenomena seen in the liquid and money market category, where banks and corporates redeem to meet their advance tax payments and other payments.

Read more about: gold, etf
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