Gold ETFs log inflow for fifth month on trot amid COVID-19
New Delhi: Gold ETFs witnessed an inflow of Rs 908 crore in August, for fifth month in a row, amid major economies staring at recession due to the spread of Coronavirus pandemic.
With this, net inflow in gold exchange traded fund or ETF category reached at Rs 5,356 crore in January-August period of 2020, data with the Association of Mutual Funds in India (Amfi) showed.
According to the data, a net sum of Rs 908 crore was pumped into gold-linked ETFs last month, higher than the net Rs 921 crore in July.
The inflows meant assets under management (AUM) of gold ETFs climbed by over 4 per cent to Rs 13,503 crore at the end of August from Rs 12,941 crore at July-end.
Month-wise, investors put in a net Rs 202 crore in January, Rs 1,483 crore in February, but withdrew Rs 195 crore in March on profit-booking.
Inflows resumed in April at Rs 731 crore, followed by Rs 815 crore in May and Rs 494 crore in June.
"Gold prices came off its all-time high in August, after witnessing almost an uninterrupted rally this year. This probably provided a good entry point for investors to invest in yellow metal," said Himanshu Srivastava, Associate Director Manager Research at Morningstar India.
" With all major economies staring at recession due to the spread of coronavirus pandemic, gold, with its safe-haven appeal, has emerged as one of the best performing asset classes and a preferred investment destination among investors," he added.