Gold ETFs continues to see inflows for sixth straight month in September

Topics Gold ETF | Markets | Amfi

Gold prices came-off its all-time high of about Rs 56,200 it hit in August, after witnessing almost an uninterrupted rally this year. Photo: Reuters
The Gold ETF category continued to receive net inflows for the sixth straight month in September. The category received inflows of Rs 597 crore in September, taking its year-to-date total to Rs 5,957 crore, data from Association of Mutual Funds in India show.

Gold prices came-off its all-time high of about Rs 56,200 it hit in August, after witnessing almost an uninterrupted rally this year. This probably has provided a good entry point for investors to invest in yellow metal. On Friday, December gold futures were up 0.8 per cent on MCX to Rs 50,584 in early trade.  

“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 class and a preferred investment destination among investors. Moreover, as the surge in coronavirus cases have cast a doubt on the swift recovery hopes, investors continue to hedge their exposure to riskier assets by investing a portion of their assets in gold, as it is seen as a safe haven in times of uncertainty,” said Himanshu Srivastava, Associate Director – Manager Research, Morningstar India.

He added that this segment may continue gaining traction among investors considering the threat posed by the coronavirus pandemic to the global economy and the markets.

Gold functions as a strategic asset in an investor’s portfolio, given its ability to act as an effective diversifier, and alleviate losses during tough market conditions and economic downturns.


Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel