Gold ETFs Draw Rs 1,256 Crore From Investors In July
Net assets under management of gold ETFs stood at a record Rs 67,635 crore last month
Gold exchange-traded funds recorded a third consecutive month of inflows in July. The funds witnessed a net inflow of Rs 1,256 crore last month compared to Rs 2,080 crore in June, according to data released by the Association of Mutual Funds in India on Monday.
Bullion ETFs are passive investment instruments that track the price of gold. Investors had pulled money out of gold ETFs in March and April to book profits amid a surge in prices.
Net assets under management of gold ETFs stood at a record Rs 67,635 crore last month, a 51% year-on-year increase. It is to be noted that the AUM also reflects the appreciation in bullion prices.
In July, the average gold spot price rate on the MCX was Rs 97,481 per 10 grams, up 2.5% over the previous month.
Gold ETFs are a proxy and tax-efficient way of investing in the precious metal, without the need to physically store it. There are over 20 bullion ETFs in India, with the largest being Nippon India ETF Gold BeES.
Global gold ETFs continued to see inflows in July, dominated by North America and Europe, according to the World Gold Council. Investors added $3.2 billion in such funds.
