Gold ETFs see `250 crore outflow in April-July FY18
Gold exchange traded funds (ETFs) continued losing popularity as an investment class with investors pulling out over Rs 250 crore from the instrument in April-July of this fiscal, preferring equities over them.
Trading in gold ETF segment has been tepid during the last four financial years. It has witnessed outflows of Rs 775 crore in 2016-17, Rs 903 crore in 2015-16, Rs 1,475 crore 2014-15 and Rs 2,293 crore in 2013-14. On the other hand, equity and equity-linked saving scheme (ELSS) saw an infusion of more than Rs 41,000 crore during the first four months (April-July) of the current financial year. Stock markets have been on an upswing, touching new highs this year.
According to Vidya Bala, head of MF Research at Fundsindia.com, gold is losing steam as an investment asset class due to gradual rate hike in the US and a possible squeezing in Europe by 2018.
"This is because, when debt as an asset delivers higher yields, gold, which has no underlying fundamentals, tends to underperform,"