New Delhi: Gold exchange-traded funds (ETFs) saw a steep 50 per cent rise in India in the month of January, with their monthly inflows exceeding the entire equity mutual fund segment, according to data released by the Association of Mutual Funds in India (AMFI) on Tuesday. Gold ETF inflows surged to about Rs 24,040 crore in January, more than double the Rs 11,647 crore in December, making gold one of the standout segments for the month.
Meanwhile, equity mutual fund inflows stood at Rs 24,029 crore in January, nearly 14 per cent lower than Rs 28,054 crore in December. The mutual fund industry saw total flows turn positive at Rs 1.56 lakh crore, led by debt schemes, which recorded net inflows of Rs 74,827 crore, according to the AMFI data. While Hybrid schemes attracted Rs 17,356 crore, “other schemes”, including ETFs, brought in Rs 39,955 crore. Despite a volatile month for equity markets, mutual fund AUM expanded in January, highlighting the resilience of investor participation, said analysts.
“Key standout, however, were gold ETFs, with AUM rising nearly 50 per cent and monthly inflows exceeding those into the entire equity segment, pointing to the increasing financialisation of gold as an investment asset,” said Varun Gupta, CEO, Groww Mutual Fund. The mutual fund industry returned to positive net inflows, with total flows turning positive at Rs 1.56 lakh crore. This was mainly led by debt schemes, which recorded net inflows of Rs 74,827 crore.
The AUM of open-ended equity-oriented schemes stood at Rs 34.86 lakh crore, while open-ended debt-oriented schemes managed Rs 18.90 lakh crore. Himanshu Srivastava, Principal Research, Morningstar Investment Research India, said that flows remained constructive despite bouts of market volatility, supported by steady SIP contributions and continued confidence in the long-term structural growth prospects of Indian equities. The moderation in overall inflows was largely driven by cooling momentum in the mid- and small-cap segments, he mentioned. Large-cap and focused funds also witnessed healthy traction in January, recording higher inflows compared with December.
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