Gold Exchange-Traded Funds (ETFs) has noted a staggering net inflow of over Rs 2,400 crore in the quarter ended on 30 September, 2020, as compared to the infusion of Rs 172 crore during the same period previous year, according to the data available of Association of Mutual Funds in India (Amfi).
Due to the impact of Covid-19 pandemic, the higher uncertainty in the economy led investors to continue hedging their exposure to riskier assets. Gold has been among the better-performing asset than any other so far this year and thus, received a net inflow of Rs 5,957 crore. In the September quarter, a total sum of Rs 2,426 crore was pumped into gold ETFs, according to the data.
On a monthly basis, a total of Rs 202 crore was invested by investors in January, Rs 1,483 crore in February and withdrawn Rs 195 crore in March for booking profits. Later, in April inflows resumed at Rs 731 crore, Rs 815 crore in May, Rs 494 crore in June, followed by Rs 921 crore in July, Rs 908 crore in August, and Rs 597 crore in September.
The inflows led the gold’s Assets Under Management (AUM) to Rs 13,590 crore at the end of 30 September, 2020, from Rs 5,613 crore in the end of 30 September, 2019.