fbpx
Connect with us
RJI

Daily News

Gold ETFs see outflows of Rs 267 crore in Jan-March Quarter

Published

on

The gold exchange traded funds or gold ETFs have seen an outflow of Rs 267 crore in the first three months (January to March) of 2018. However, the quantum of outflows has come down from Rs 110 crore in January to Rs 62 crore in March. Mutual fund advisors say the outflows were mainly due to poor returns offered by gold ETFs and the volatility in gold prices.

According to data from Association of Mutual Funds in India or AMFI, investors pulled out Rs 110 crore in January and Rs 94 crore in February from gold ETFs. With the March outflows, the total outflows from gold ETFs have reached Rs 835 crore in the financial year 2017-2018.

Previously, gold ETFs had witnessed an outflow of 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.

Some investors opt for gold ETFs to diversify their investment portfolio. However, mutual fund advisors have been asking investors to stay away from gold ETFs as the yellow metal has failed to offer meaningful returns for a long period.

Many Indians consider it auspicious to buy gold on Akshaya Trithiya. Mutual fund advisors have been asking investors to make token purchases and invest the remaining money in gold funds. However, most advisors are not recommending gold schemes because of their insipid performance in the last five years.

News: Economic Times

Continue Reading

Latest News