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With gold prices hitting new highs, inflows into gold ETFs witnessed an inflow of ₹145 crore, the highest in the last six years.
Net assets managed by the 12 gold ETFs were higher at ₹5,799 crore in August against ₹5,080 crore recorded in July, according to data released by the AMFI. Investors found safe haven in gold with equity markets turning volatile amid a slowing economy. However, the high gold prices depressed the demand for physical gold.
NS Venkatesh, CEO, AMFI, said increase in gold prices may have influenced investors to consider paper gold rather than buying the physical metal.
Overall, he said, it is a good sign as the government wants people to consider financial savings rather than pouring money into physical assets.
Benchmark gold futures in Mumbai have jumped 23 per cent this year after India increased import duty in July and international prices also rallied to six-year highs on growing US-China trade tensions.
Also read:It’s time to add gold ETFs to your portfolio
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