Gold ETF Inflows Slow To Nine-Month Low Of Rs 640 Crore In December
Overall in 2024, Indians poured Rs 11,226 crore into gold ETFs.
Net inflows into gold exchange-traded funds slowed to a nine-month low in December at Rs 640 crore as prices of the yellow metal cooled, according to the data released by the Association of Mutual Funds in India on Thursday.
Overall in 2024, Indians poured Rs 11,226 crore into gold ETFs.
December was the eighth consecutive month of net inflows into gold ETFs — passive investment instruments that track gold prices, as per the AMFI data. In October, the net inflows had soared to a record Rs 1,962 crore, but dipped to Rs 1,257 crore in November.
Net assets under management of gold ETFs in India stood at a record Rs 44,596 crore last month. It is to be noted that the AUM also reflects the appreciation in prices.
The AUM has jumped 61% from December 2023, as investors increasingly turn to the proxy and tax-efficient way of investing in gold without the hassle of physically storing it.
The lure of gold ETFs comes amid rising equity market volatility and bullish sentiment towards gold that continues to attract investors. While the benchmark NSE Nifty 50 gave a return of 8.8% in 2024, the Nippon India Gold ETF — the largest in the segment — soared 23.2%.
Globally, the December flows flipped back to positive at $778 million, led by Asia and Europe, while North America saw mild losses, according to World Gold Council.
Last year saw global gold ETFs' first positive December since 2019, while collective holdings rose by four tonne to 3,219 tonne. However, total global gold ETF AUM fell by 1.4% to $271 billion mainly due to a 1.5% decline in the metal's price, WGC said.
Meanwhile, the AMFI data showed that actively managed equity mutual funds recorded Rs 41,155.9-crore inflow during December 2024, marking a 14% rise from the amount recorded in November.
