Investors throng to Gold ETFs; invest Rs 124 cr in ‘safe haven’ asset class

New Delhi: Investors flocked to gold exchange traded funds (ETFs), which are considered a safe haven during uncertain times, and put in Rs 124 crore in April after withdrawing money in the preceding month.

This was in comparison to a net outflow of Rs 266 crore from the asset class in March, data from the Association of Mutual Funds in India (Amfi) showed.

"Over the past few months, we have witnessed gold prices rising. While gold prices rose, some investors would have chosen to book profits or take on risk on approach with a view that central banks would pause further rate hikes," Himanshu Srivastava, Associate Director - Manager Research at Morningstar India, said.

He, further, said that pertinent risks still engulf developed economies and therefore over the course of the month, investors were attracted towards Gold ETFs.

According to the data, 14-gold linked ETFs have seen an inflow of Rs 124.54 crore last month, which helped in raising the assets under the management of such funds to Rs 22,950 crore at the end of April from Rs 22,737 crore in March-end.

Gold, with its superlative performance over the last few years, has attracted significant investor interest, and the consistent surge in its folio numbers is a testimony of the same.

The folio numbers in gold ETFs surged by over 12,600 to 47.13 lakh in the month under review from 46.99 lakh in March. This shows that investors have become more inclined towards gold-related funds.