Gold ETFs Inflows In India Fell 35% In October

Gold exchange-traded funds (ETFs) witnessed an inflow of Rs 384 crore in October, a 35 percent fall from the preceding month, as investors preferred investing money directly into equities.

While it was the seventh consecutive month, the pace of investment into gold ETFs have been trending downwards since July.

As per data from the Association of Mutual Funds in India (AMFI), such instruments saw an inflow of Rs 922 crore in July, Rs 908 crore in August, Rs 597 crore in September and Rs 384 crore in October.

With the latest inflow, net infusion in a gold exchange-traded fund or ETF category has reached to Rs 6,341 crore in the first eight months (January-October) of 2020.

The inflows meant assets under management (AUM) of gold ETFs climbed to Rs 13,862 crore at the end of October, from Rs 13,622 crore at September-end.

Gold prices rose nearly 30 percent in 2020 due to the uncertainty infused by COVID-19 pandemic as the metal is considered a safe haven and a hedge against other riskier asset classes. It has, however, taken a back seat in the second half of 2020 as investors shifted their interest into equities.