Gold exchange-traded funds (ETFs) attracted Rs. 1,328 crore from investors in the quarter ended June 2021 and experts believe the flows will continue in the coming months of the fiscal year.
By comparison, entries into the category were much higher at Rs 2,040 crore in the same quarter last year, according to data available from the Association of Mutual Funds of India (Amfi).
Quantum Mutual Fund Sr, Alternative Investment fund manager Chirag Mehta said gold ETF inflows were significant in the June quarter of last year due to significant economic uncertainty due to the COVID-19 pandemic. This year, given the optimism surrounding the economic recovery, admissions have slowed a bit.
“The higher net inflows into gold ETFs last year could be attributed to the onset of the pandemic that created massive uncertainties over asset prices and inflation, leading many investors to look to them. Gold ETFs, ”said Arshad Fahoum, chief product officer at Market Pulse, said.
Expressing similar views, Divam Sharma, co-founder of Green Portfolio, said the first half of 2020-21 saw high inflows in gold ETFs as there was uncertainty with Covid 1.0 and investors wanted to diversify the liquidity to this asset class.
“With the resumption of trading activity and the stock markets continuing to outperform, allocations have shifted from gold. Bitcoin has also been a spoiler for sustaining prices and, therefore, allocations to the class of. assets have been under pressure, ”he added.
In the first three months of 2021 gold ETFs recorded net inflows amounting to Rs 1,779 crore and over the following three months these instruments recorded a net infusion of Rs 1,328 crore, according to Amfi data.
Despite the slowdown in inflows, the assets under management (AUM) of gold ETFs
rose sharply to Rs 16,225 crore at the end of June 2021 against Rs 10,857 crore at the end of June 2020.
At the same time, investor accounts or folios in gold ETFs jumped three times to reach 18.32 lakh during the period under review, up from 6.31 lakh in June 2020.
Investors regularly recognize the need to add gold as a diversification in their portfolio and this is evident from the fact that the category received a net inflow of Rs 9,737 crore from January 2020 to June 2021.
Gold functions as a strategic asset in an investor’s portfolio, given its ability to act as an effective diversification tool and mitigate losses during difficult market conditions and economic downturns, said Himanshu Srivastava, Director research associate, Morningstar India.
Going forward, Market Pulse’s Fahoum expects the current fiscal year to attract more gold ETF inflows, especially if gold prices continue to show strength at short term.
Additionally, with major global indices at all-time highs, any concerns about the pandemic or falling bond yields coupled with higher inflation could induce caution among the investor population, which could bolster gold prices. and the possible influx of gold. ETF, he added.
Mehta of Quantum Mutual Fund also expects gold ETF inflows to continue as investors realized the importance of gold in their portfolios and still being under-allocated from a market perspective. wallet.
“Gold ETFs will continue to remain a vehicle of choice due to their price efficiency and liquidity. Gold is seen as a useful asset in emergencies and last year’s lockdowns. have dried up much of the retail liquidity at that time, ”he added.
Gold ETFs are basically exchange traded funds that invest in gold. They are listed on the stock exchange and invest directly in gold.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
The mention sources can contact us to remove/changing this article
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]