In 2021, an investment of Rs 4,814 crore came in Gold ETF and in 2020 Rs 6,657 crore. However, the asset base of Gold ETFs and the number of investor accounts or folios have increased in 2022 as compared to the previous year.
New Delhi:
Investment flows in Gold Exchange Traded Funds (ETFs) declined by 90 per cent to Rs 459 crore last year (in 2022) due to a jump in the prices of the yellow metal, increase in interest rates and inflationary pressure. This information has been received from the data of Association of Mutual Funds in India (AMFI). In 2021, an investment of Rs 4,814 crore came in Gold ETF and in 2020 Rs 6,657 crore. However, the asset base of Gold ETFs and the number of investor accounts or folios have increased in 2022 as compared to the previous year.
Kavita Krishnan, senior analyst manager, research, Morningstar India, said, “Rising gold prices probably put some pressure on investors, as many held on to their investments in anticipation of a correction.” Inflationary pressure and high interest rate structure also remain a challenge in this matter.
On the domestic front, investors found it more appropriate to invest in stocks in 2022 as compared to other asset classes. In 2022, investors invested Rs 1.6 lakh crore in stocks, which is much higher than the previous year’s figure of Rs 96,700 crore.
Apart from this, investors preferred investing in Systematic Investment Plan (SIP). He took out investments from other asset classes and put them in stocks.
Positive inflows into gold ETFs helped its assets under management (AUM) grow by 16 per cent to Rs 21,455 crore at the end of December 2022 from Rs 18,405 crore a year ago.
The number of folios in Gold ETFs increased by 14.29 lakhs to 46.28 lakhs by December 2022 from 32.09 lakhs by December 2021. This shows that the inclination of investors has increased towards gold funds.
(This news has not been edited by NDTV team. It is published directly from syndicate feed.)