Gold ETFs attract Rs 683 cr in Nov on emergence of Omicron
Gold exchange traded funds (ETFs) continued to attract investor attention and garnered net assets worth Rs 683 crore in November, as correction in the prices of the yellow metal and Omicron worries pushed investors towards safe haven assets.
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New Delhi: Gold exchange traded funds (ETFs) continued to attract investor attention and garnered net assets worth Rs 683 crore in November, as correction in the prices of the yellow metal and Omicron worries pushed investors towards safe haven assets. This was higher than the net inflow of Rs 303 crore in October and Rs 446 crore seen in September.
Prior to this, the segment saw a net inflow of Rs 24 crore in the previous month, data with the Association of Mutual Funds in India (Amfi) showed. "Gold ETFs saw a prominent inflow for the month too. As the scare of a new variant of SARS-CoV-2, Omicron is looked like a potential cause of worry for the economy now, investors could be resorting to the traditional form of investment as a hedge from market volatility," Priti Rathi Gupta, Founder, LXME, said.
Himanshu Srivastava, associate director (manager research), Morningstar India, said: "The correction in gold prices in November and concerns over the emergence of Omicron variant of Coronavirus enhanced the appeal of safe haven assets such as gold. With the latest inflow, the net infusion in Gold ETF category has reached to Rs 4,500 crore so far this year. The segment witnessed just one month of net outflow, which was in July 2021 of around Rs 61.5 crore. This points towards investors' liking for yellow metal as part of their investment portfolio."
The latest inflow helped in pushing the number of folios in the category by 10 per cent to 29.29 lakh in November, from 26.6 lakh in October in the preceding month.
