Gold exchange traded funds inflows in India more than halved in March amid uncertainties over US-Iran war. Net inflows stood at Rs 2,266 crore, according to data released by the Association of Mutual Funds in India on Friday, April 10.
In February, investors allocated a net Rs 5,255 crore in these funds.
Gold ETFs are exchange traded funds that track the price of the physical gold. 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.
Take a look at gold ETF inflows/outflows in the last 12 months:
Gold prices fell 11% in the domestic market last month, matching the decline in equity benchmark Nifty 50.
The net assets under management (AUM) of gold ETFs as of March 31 stood at Rs 1.71 lakh crore. It is to be noted that the AUM also reflects the appreciation in bullion prices.
ALSO READ: February AMFI Data: Active Equity Mutual Fund Inflows Increase By 8%; Gold ETFs Dip
Largest Monthly Outflow Globally
In the global markets, gold ETFs recorded $12 billion outflows in March, marking the largest monthly outflow, according to data from World Gold Council. Before March, gold ETFs were expected to record strongest quarter globally, however with the volatility in this year, these funds still record a seventh consecutive quarter of net inflows.
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