Gold ETF’s shine continues, investment in January was seven times more than last month

By Sudhakar Yadav February 13, 2024 6:50 PM IST
Gold's popularity likely to remain intact due to current geopolitical tensions and high levels of US inflation - India TV Paisa
Photo:REUTERS Gold is expected to remain popular due to current geopolitical tensions and high levels of US inflation.

The fascination with gold remains constant among investors. Despite all the investment options, investors are investing money in gold. This is indicated by the latest data of Gold ETF. Rs 657 crore were invested in Gold Exchange Traded Fund (ETF) in January. According to language news, this is seven times compared to the previous month i.e. December. Industry organization Association of Mutual Funds in India (AMFI) gave this information on Tuesday. Market experts believe that gold is a safe option for investment amid the ongoing tension at the global level and high inflation in America.

Strong jump in January compared to December

According to the news, data from the industry organization shows that with this investment, the assets under management (AUM) of the gold fund increased by 1.6 percent to Rs 27,778 crore by the end of January. This amount was Rs 27,336 crore at the end of December 2023. The latest data of Gold Exchange Traded Fund states that in January, net investment in Gold ETFs increased to Rs 657.4 crore from Rs 88.3 crore in the previous month. Rs 6 crore was raised from the Tata Gold Exchange Traded Fund offering.

Gold’s popularity expected to continue

Melvin Santarita, analyst at Morningstar Investment Research India, said gold is expected to remain popular due to current geopolitical tensions and high levels of US inflation. Under Gold ETFs, the price of domestic physical gold is monitored. Investments in gold ETFs are based on gold prices. The amount raised under this fund is invested in bullion.

What is gold etf

According to the Association of Mutual Funds in India (Amfi), Gold ETF is an exchange traded fund whose objective is to track the price of physical gold held in households. Gold ETFs are units representing physical gold which can be in paper or dematerialized form. One gold ETF unit is equal to one gram of gold.

Latest Business News