- Indian retail investors net inflow in gold ETFs was Rs 5,255 crore in February despite price fall
- Gold ETFs AUM stood at Rs 1.83 lakh crore as of February 28, reflecting bullion price gains
- Gold prices fell 3.5% in February, while Nifty 50 and Sensex declined 0.6% and 1.2% respectively
Indian retail investors remained favourable on gold exchange traded funds in February despite a pullback in prices. Net inflows stood at Rs 5,255 crore, according to data released by the Association of Mutual Funds in India on Tuesday.
The previous month witnessed a record inflow of Rs 24,040 crore, matching those into equity funds for the first time.
Gold ETFs Inflow Pattern
Gold ETFs are passive investment instruments that track the price of the yellow metal. They are a proxy and tax-efficient way of investing in the precious metal, without the need to physically store it. There are 25 schemes available in India.
The net assets under management of gold ETFs as of Feb. 28 stood at Rs 1.83 lakh crore. It is to be noted that the AUM also reflects the appreciation in bullion prices.
Gold prices fell 3.5% in the local market last month. The equity benchmark Nifty 50 index shed 0.6% and Sensex dipped 1.2%.
Silver ETFs, another hot investment destination for retail investors, recorded a net outflow of Rs 826 crore last month compared to inflow of Rs 9,463 in January. The net AUM stood at Rs 91,975 crore.
Globally, investors continued to allocate to gold ETFs in February, marking the ninth consecutive month of inflows adding $5.3 billion. North America dominated global inflows, Asian demand remained positive, and Europe was the only region to record outflows, according to the World Gold Council.
Total global holdings rose to a new all‑time high, increasing 26 tonnes to 4,171 tonnes, while a further rise in gold prices lifted global AUM to a record $701 billion.
Mutual Fund Inflows
Meanwhile, actively managed equity mutual funds recorded a net inflow of Rs 25,978 crore in February, compared to Rs 24,029 crore in January. Overall industry flows stood at Rs 94,530 crore, versus Rs 1.56 lakh crore.
Net investments across equity categories showed a rise relative to the previous month, with flexicap funds leading the movement.
ALSO READ: N Jayakumar Suggests Doubling Down On SIPs, Sees Gold And Silver As Key Hedge
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.