Volatility in the stock market: The growing trend of investors towards gold ETFs

Mumbai, Ta. 15 June 2020, Monday

Amid fears of volatility in the stock market and coronavirus, investors turned to safer investments such as gold exchange traded funds (ETFs).

Gold ETFs are the best performing segment since last year.

According to sources in the Association of Mutual Funds in India (AMFI), the segment has seen an inflow of Rs 3 crore since August 2016.

Compared to the net outflow of Rs 15 crore in March this year and the net inflow of Rs 21 crore in April, the figure of Rs 216 crore in May is very high.

The net outflow was Rs 308 crore in January this year and Rs 15 crore in February this year.

As a result of the uncertainty created by the impact of the coronavirus on the global economy, investors prefer safe investments such as gold to equities.

Compared to other asset classes, gold has given investors an attractive return of more than 15 per cent this year. The rate of return has also gone up due to the rising price of gold.

At the end of May, the asset under management of the country's gold funds rose to Rs 10,108 crore from Rs 214 crore at the end of April.

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