NEW DELHI: Investors’ gold has increased due to uncertainty between increasing risk and the Kovid-19 epidemic. Investors infused Rs 6,900 crore in Gold Exchange Traded Funds (ETFs) in the financial year 2020-21.
This was the second consecutive financial year when gold ETFs were invested. Prior to this, there were continuous withdrawals from Gold ETFs from 2013-14. This information has been obtained from the data of Association of Mutual Funds in India (Amphi), a body of mutual funds.
Hershad Chetanwala, co-founder of mywealthgrow.com, said that it is unlikely that this trend of investing in gold ETFs will continue even in the current financial year. However, the second wave of Corona has scared the market.
According to Amphy’s data, in the recently concluded financial year, investors invested a net of Rs 6,919 crore in 14 ETFs related to gold. This is four times the investment of Rs 1,614 crore made in 2019-20.
Earlier, in 2018-19, there was a net withdrawal of Rs 412 crore from Gold ETFs. In 2017-18, Rs 835 crore was withdrawn from Gold ETFs, Rs 775 crore in 2016-17, Rs 903 crore in 2015-16, Rs 1,475 crore in 2014-15 and Rs 2,293 crore in 2013-14.
However, during the year 2012-13, an investment of Rs 1,414 crore was made in this segment. For the past few years, retail investors have poured more money into the equity market than gold ETFs in search of better returns.
Chirag Mehta, Senior Fund Manager (Alternative Investment), Quantum Mutual Fund, said, “Higher risk and increased volatility due to corona virus will affect risky assets such as equities. Investors may be interested in safer assets such as gold.”
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