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Tania Kishore Jaleel

Mumbai, March 20 Collections for the five listed gold Exchange Traded Funds have dipped in February over the previous month, though their assets under management (AUM) increased as net asset values rose, as they tracked the sharp rise in the spot gold prices in that month.

Mr Rajan Mehta, Executive Director of Benchmark AMC, said that many investors exited gold ETFs when prices had reached high levels in order to book profits. Not many people entered this space due to the high prices, he added, accounting for the dip in collections.

Gold holdings by the ETFs have dipped for the first time in the last year. As on February 27, the gold held by the five ETFs decreased four per cent to 5.17 tonnes from 5.4 tonnes in end of January. Between January 31 and February 27 the price of spot gold shot up nine per cent to Rs 15,460. “Gold prices have rallied in February and they even touched an all time high. Due to this rise the ETFs faced some redemption pressure as people exited to book profits,” said Mr Devendra Nevgi, CEO and COO at Quantum AMC.

The share prices of the ETFs have gone up by an average of seven per cent during this period.

Quantum Gold Fund’s share price increased the most during this period. It jumped 7.6 per cent to Rs 747.44. Benchmark’s Gold ETF (Gold Bees) has surged 7.3 per cent to Rs 1,503.67, Kotak Gold ETF rose 7 per cent to Rs 1,498.53, Reliance Gold ETF jumped 6.4 per cent to Rs 1,456.93, while UTI Gold ETF rose 6.98 per cent to Rs 1,498.81.

During the same period, the Sensex fell seven per cent and the Nifty 50 fell 1.8 per cent.

The AUM of the five ETFs has increased close to 6 per cent to Rs 7.64 crore as on February 27 from Rs 7.21 crore as on January 31. The asset base of the mutual fund industry as a whole has shot up more than eight per cent to Rs 5,00,973 crore.

More Stories on : Gold & Silver | Mutual Funds

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