After witnessing net outflows of Rs 725 crore in May, Gold ETFs witnessed inflows worth Rs 3,443 crore in June, according to data released by the Association of Mutual Funds in India (AMFI). Experts believe the bounce back in interest for gold ETFs reflects the outflows were a temporary pause and not a sustained slowdown.
investment plan (SIP) inflows touched a three-month high of Rs 31,781 crore in June, an increase of 3 percent month-on-month and 17 percent from a year ago-despite volatile market conditions amid West Asia conflict. According to data released by the Association of Mutual Funds in India (AMFI), gold exchange-traded funds (ETFs) witnessed a sharp turnaround, attracting net inflows of Rs 3,443.23 crore in June, up 570 per cent against an outflow of Rs 725 crore in May. Experts believe this data also shows how investors are using gold as a strategic tool now and being optimistic on the bullion in the long-term.
Meanwhile, other ETFs also remained in demand, receiving net inflows of Rs 13,237.76 crore during the month. The equity-orientated mutual fund schemes also witnessed robust investor interest, with net inflows rising nearly 26 percent month-on-month to Rs 28,973.41 crore in June from Rs 22,907.77 crore in May, according .
Analysts believe this latest data shows how resilient retail investors are amid volatility. This also reflects that investors are supporting long-term wealth creation ideas as oppose to other short-term avenues. Some analysts also feel the sharp 570 percent surge shows how the safe-haven appeal and demand for the bullion remains intact even amid uncertain global developments and geopolitical concerns. However, given the recent escalation as well as the spotlight on the ‘technical talks’ between US and Iran analysts believe a lot will be in wait and watch mode and remain cautious going forward.