Gold exchange-traded funds (ETFs) attracted Rs 446 crore in September and inflow may continue in coming months due to strong demand on the back of festival season in the country.
The was sharply higher than the net inflow of Rs 24 crore recorded in the previous month. In July, the category saw a net withdrawal of Rs 61.5 crore, data with the Association of Mutual Funds in India (Amfi) showed.
With this, gold ETF category has received a net inflow of Rs 3,515 crore so far. The segment witnessed just one month of net outflows, which was in July.
The latest inflow helped in pushing the number of folios in the category by over 14 per cent to 24.6 lakh in September from 21.46 lakh in the preceding month. So far this year, the folio numbers have surged by 56 per cent. Market experts attributed the inflow in September to correction in the price of the yellow metal and onset of the festival season in the country.
“Gold ETFs saw a prominent inflow for the past month. In the thick of a volatile market, resorting to a safe instrument can be one of the reasons for this move, with rising gold prices being the other reason drawing attention to the instrument,” Priti Rathi Gupta, Founder of LXME, said.
