LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Personal Finance News

Gold ETFs lose sheen, investors withdraw Rs 280 cr in Apr-Nov; AUM down 11%

Gold exchange-traded funds (ETFs) continue to lose steam, with investors pulling out Rs 280 crore during the April-November period of the current fiscal, preferring to invest in equities despite volatile markets.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Gold ETFs lose sheen, investors withdraw Rs 280 cr in Apr-Nov; AUM down 11%
Gold exchange-traded funds (ETFs) continue to lose steam, with investors pulling out Rs 280 crore during the April-November period of the current fiscal, preferring to invest in equities despite volatile markets. Source: Pixabay
Written By: PTI
Updated: Wed, Dec 26, 2018
12:32 pm
PTI
RELATED NEWS
Government gets Rs 17,000 cr from CPSE ETF follow on offer Government gets Rs 17,000 cr from CPSE ETF follow on offer
Sebi relaxes restrictions on 40 entities Sebi relaxes restrictions on 40 entities
Why you should be investing in Sovereign Gold Bonds this Dhanteras Why you should be investing in Sovereign Gold Bonds this Dhanteras
Investors see more value in mutual funds than investing in markets directly Investors see more value in mutual funds than investing in markets directly
Gold Exchange Traded Funds outflow crosses Rs 460 crore in April-August FY17 Gold Exchange Traded Funds outflow crosses Rs 460 crore in April-August FY17

Gold exchange-traded funds (ETFs) continue to lose steam, with investors pulling out Rs 280 crore during the April-November period of the current fiscal, preferring to invest in equities despite volatile markets. In comparison, 14 gold-linked ETFs had witnessed a withdrawal of Rs 511 crore in the first eight months of 2017-18, the latest data from industry body Amfi showed.

The outflow razed the assets under management (AUMs) of gold funds by 11 per cent to Rs 4,385 crore at the end of November, from Rs 4,922 crore a year ago. Gold ETF trading has been tepid during the past five financial years. It saw an outflow of Rs 835 crore in 2017-18, Rs 775 crore in 2016-17, Rs 903 crore in 2015-16, Rs 1,475 crore in 2014-15 and Rs 2,293 crore in 2013-14.

However, the segment had witnessed an infusion of Rs 1,414 crore in 2012-13. Industry experts said positive returns given by the equity market have resulted in Indian investors largely staying away from investing in gold ETFs. In fact, redemptions have been seen in the past five years.

They said Indian investors have traditionally preferred to hold gold in physical form, rather than ETFs which are actually a better form of holding from an investor's perspective. Ideally, investors should look to allocate 5-10 per cent of the portfolio towards gold, which works as a portfolio hedge and helps reduce overall portfolio volatility.

Gold ETFs are passive investment instruments that are based on price movements and investments in the metal. On the other hand, equity and Equity-Linked Savings Scheme (ELSS) saw an infusion of over Rs 82,200 crore in the April-November period of the ongoing fiscal (2018-19) despite volatile equity markets.

"Equity as an asset class has delivered tax-efficient returns, which has beaten inflation albeit with volatility in the short term," Kotak Mahindra Asset Management Company National Head (Sales and Distribution Alliances) Manish Mehta said.

Overall, mutual fund schemes witnessed a net inflow of Rs 2.23 lakh crore in April-November period of the current fiscal. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Exchange Traded Funds (ETFs)gold exchange traded fund (ETF)
RELATED NEWS
Government gets Rs 17,000 cr from CPSE ETF follow on offer Government gets Rs 17,000 cr from CPSE ETF follow on offer
Sebi relaxes restrictions on 40 entities Sebi relaxes restrictions on 40 entities
Why you should be investing in Sovereign Gold Bonds this Dhanteras Why you should be investing in Sovereign Gold Bonds this Dhanteras
Investors see more value in mutual funds than investing in markets directly Investors see more value in mutual funds than investing in markets directly
Gold Exchange Traded Funds outflow crosses Rs 460 crore in April-August FY17 Gold Exchange Traded Funds outflow crosses Rs 460 crore in April-August FY17

LATEST NEWS

Successful! Indian rocket PSLV puts Brazil's Amazonia-1 satellite into orbit

Homebuyers alert! Avoid real estate troubles by knowing these top 5 things before buying flat in 2021

Salaar Movie Prabhas: Release Date, Cast, Poster, Heroine - Confirmed! Another blockbuster from KGF makers?

Sovereign Gold Bonds 2020-21 scheme: Check opening, closing dates and rates

New Inbase smartwatch Urban LYF is here - Check features, offers, promo code and more

Big insurance offers! 80-100 per cent discounts - All you need to know about renewal of health policies

IndiGo's select flights from Mumbai Airport from March 10

Mann Ki Baat Latest Episode: What all PM Narendra Modi said in his popular radio programme today - Know here

Centre finalises One District One Focus Product to promote in cluster approach

'Improved economic environment to boost FY21 credit growth'

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved