Rising gold prices lead to all-time high investments
11 Oct 2012 1:40 AM GMT
Rising gold prices and continuing investment flow in yellow metal has pushed the size of assets held through gold exchange traded funds to an all-time high of Rs 11,198 crore.
The surge in asset size of gold funds has come at a time when the government is contemplating steps to encourage large flow of household savings into equity, mutual funds and other financial instruments, rather than to idle assets like gold.
According to data compiled by mutual fund industry body AMFI, the assets under management of gold ETFs crossed the Rs 11,000 crore mark in September from Rs 10,701 crore in August.
In June, investor wealth in gold ETFs surpassed the psychological mark of Rs 10,000 crore; it was just above Rs 5,000 crore level till a few months ago in May 2011.
There are as many as 25 different gold ETF schemes across 14 different fund houses at present. These products, which track the metal’s prices, provide an opportunity to investors to accumulate gold over a given period of time since they can be purchased in small quantities. In the last 3 months, inflows worth Rs 500 crore have come into gold ETFs. In 2011-12, over Rs 3,600 crore was pumped while inflows of Rs 2,250 crore came in 2010-11.Â
The surge in asset size of gold funds has come at a time when the government is contemplating steps to encourage large flow of household savings into equity, mutual funds and other financial instruments, rather than to idle assets like gold.
According to data compiled by mutual fund industry body AMFI, the assets under management of gold ETFs crossed the Rs 11,000 crore mark in September from Rs 10,701 crore in August.
In June, investor wealth in gold ETFs surpassed the psychological mark of Rs 10,000 crore; it was just above Rs 5,000 crore level till a few months ago in May 2011.
There are as many as 25 different gold ETF schemes across 14 different fund houses at present. These products, which track the metal’s prices, provide an opportunity to investors to accumulate gold over a given period of time since they can be purchased in small quantities. In the last 3 months, inflows worth Rs 500 crore have come into gold ETFs. In 2011-12, over Rs 3,600 crore was pumped while inflows of Rs 2,250 crore came in 2010-11.Â
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