New Delhi : Investors remained bearish on gold exchange-traded funds (ETFs) in July and pulled out Rs 183 crore from this instrument, taking the total to Rs 411 crore in the first four months of the current fiscal, mainly on account of profit-booking.
This also marks the highest monthly outflow since June 2014, when gold-backed ETFs saw a pullout of Rs 227 crore. Trading in Gold ETF segment has been tepid in the last three financial years. The funds had witnessed an outflow of Rs 903 crore, Rs 1,475 crore and Rs 2,293 crore in 2015-16, 2014-15 and 2013-14, respectively, reports PTI.
The pace of outflow, however, slowed down in 2015-16 as against the preceding two years on account of sluggish equity market. “Indian Gold ETFs continue to witness outflows with more investors seen exiting the yellow metal. This could largely be on account of investors booking profits who would have bought at lower levels around and seeing good returns in a small pan of time,” an expert said.
“Gold should benefit as central bankers attempt further measures through more newer, unconventional and untested approaches to revive growth,” he added. According to the latest data available with Association of Mutual Funds in India (Amfi), Gold ETFs witnessed a net outflow of Rs 183 crore in July, Rs 80 crore in June, Rs 79 crore in May and another Rs 69 crore in April, reports PTI.
