New Delhi: Assets managed by gold exchange traded funds rose to Rs 5,079.22 crore in the first four months of the current fiscal, a period during which stock market dropped 3% as investors turned to the yellow metal amid economic headwinds. Data from Morningstar showed that assets under management (AUM) of gold ETFs (Exchange Traded Funds) have been rising since April this year.
In contrast, the 30-share Sensex has fallen 1,191.79 points or 3% during the April-July period. The BSE's benchmark index suffered a massive drop of nearly 5% in July compared to the previous month. While gold as an asset class acts as a hedge against inflation, it is also a safe haven in times of economic turmoil, he said, adding that the global economy has been facing headwinds in the recent times, gold has once again found its safe haven appeal.