Gold exchange-traded funds (ETFs) saw staggering net inflows of over Rs 2,426 crore in the July-September period, as investors chose safe-haven assets to reduce exposure to the stock markets which are seeing high volatility due to an increase in the number of COVID-19 cases.
The quarter also saw gold rates in India touch an all-time high of Rs 56,191 per 10 grams on MCX (Multi Commodity Exchange of India) silver prices hit a record of Rs 77,949 per kg. The surge came in August when international rates rallied to a record above $2,075 an ounce.
The inflows the September-ended quarter was 14 times higher than the inflows during the same quarter in 2019 when investors had infused Rs 172 crore in this asset class as per data from the Association of Mutual Funds in India (AMFI).
Gold ETF category has received a net inflow of Rs 5,957 crore so far this year.
Month-wise, investors put in a net Rs 202 crore in January and Rs 1,483 crore in February, withdrew Rs 195 crore in March, resumed inflows again in April at Rs 731 crore, Rs 815 crore in May, Rs 494 crore in June, Rs 921 crore in July, Rs 908 crore in August and Rs 597 crore in September.
Total assets under management (AUM) for gold ETFs has surged from Rs 5,613 crore at the end of September 2019 to Rs 13,590 crore at the end of September 2020.