Inflows In India Gold ETFs Resume After A Month
Investors deployed Rs 827.43 crore into gold ETFs in May.
Inflows resumed in gold exchange-traded funds in India in May after a decline in the previous month, even as prices of the yellow metal remained elevated, driven by heavy central bank demand and geopolitical tensions.
Investors deployed Rs 827.43 crore into gold ETFs—passive investment instruments that are based on gold prices—in May, according to data released by the Association of Mutual Funds in India on Monday. In April, the first outflow was reported in over a year.
Net assets under management of gold ETFs in India stood at Rs 31,689.35 crore. It has jumped 64% in two years as investors increasingly turn to the proxy and tax-efficient way of investing in gold without the hassle of physically storing it.
Nippon India ETF Gold BeES—the country's top fund in the segment that manages over Rs 10,900 crore—has given 18% returns in the last year.
Global gold ETFs saw inflows in May, ending their 12-month losing streak, the World Gold Council said in its latest report.
Europe and Asia led global inflows, while North America and other regions registered a mild loss. The end of May saw global gold ETF holdings rise to 3,088 tonne.
Inflows Into Mutual Funds Resume
Overall inflows into mutual funds stood at Rs 1.11 lakh crore during May, as compared with Rs 2.39 lakh crore. Net assets under management increased to Rs 58.9 lakh crore in April from Rs 57.3 lakh crore in May.
Inflows into equity mutual funds almost doubled to a record high in May as new thematic schemes drove fresh investments in the segment. Equity inflows increased 83% to Rs 34,697 crore last month as against Rs 18,917.1 crore in April, according to data released by the Association of Mutual Funds in India on Monday.
The record jump in equity-oriented funds came even as debt-oriented funds saw investments dry up, reducing the overall net inflows into mutual funds.
