Gold ETFs see outflows of Rs 267 crore in Jan-March Quarter
The gold exchange traded funds have seen an outflow of Rs 267 crore in the first three months (January-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 believe that the outflows are mainly due to poor returns offered by these schemes and the volatility in gold prices.
According to data from Association of Mutual Funds in India (AMFI), investors pulled out Rs 110 crore in January and Rs 94 crore in February. With the March outflows, the total outflows from gold ETFs have reached Rs 835 crore in the financial year 2017-2018.
The assets under management of these funds have been dropping since the last three years. At present, the category manages around Rs 4,806 crore. There has been a drop of Rs 674 crore in the last one year and a drop of Rs 100 crore since the beginning of 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 invest in gold ETFs for diversification purposes. However, mutual fund advisors have been asking investors to stay away from them as the yellow metal has failed to offer meaningful returns for a long period.
A gold ETF is basically an exchange-traded fund that aims to track the price of the domestic physical gold. Investors also have the option of investing in gold fund of funds.
According to data from Association of Mutual Funds in India (AMFI), investors pulled out Rs 110 crore in January and Rs 94 crore in February. With the March outflows, the total outflows from gold ETFs have reached Rs 835 crore in the financial year 2017-2018.
The assets under management of these funds have been dropping since the last three years. At present, the category manages around Rs 4,806 crore. There has been a drop of Rs 674 crore in the last one year and a drop of Rs 100 crore since the beginning of 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 invest in gold ETFs for diversification purposes. However, mutual fund advisors have been asking investors to stay away from them as the yellow metal has failed to offer meaningful returns for a long period.
A gold ETF is basically an exchange-traded fund that aims to track the price of the domestic physical gold. Investors also have the option of investing in gold fund of funds.