52.59 F
June 13, 2024
PI Global Investments

Gold ETFs shine bright in 2023; log Rs 2,920 crore inflow amid geopolitical uncertainty

New Delhi: Gold Exchange Traded Funds (ETFs) witnessed a significant influx of Rs 2,920 crore in 2023, marking a six-fold surge compared to the previous year, as investors sought the safety of this traditional safe haven amid higher inflation, subsequent hike in interest rates and geopolitical events.

Additionally, the asset base of gold ETFs and investors’ accounts experienced growth in the year, latest data from the Association of Mutual Funds in India (Amfi) showed.

According to the data, Gold ETFs witnessed an inflow of Rs 2,920 crore in the entire 2023, which was way higher than the Rs 459 crore inflow seen in 2022.

Notably, the segment attracted Rs 1,028 crore in August 2023, which was the highest inflow in 16 months.

The attractiveness of gold as a safe haven and a hedge against inflation enhanced significantly during the year. Investors turned to this traditional safe haven amid rising inflation, subsequent interest rate hikes, and geopolitical events, seeking a secure investment option.

“Higher inflation and subsequent hike in interest rates augured well for gold. Moreover, heightened geopolitical tension triggered due to the war between Israel and Hamas made it an attractive and safe investment destination for investors,” Himanshu Srivastava, Associate Director— Manager Research at Morningstar Investment Research India, said.

Source link

Related posts

Alasdair Gold suggests Spurs could sign a striker who’d “get so many goals”


BTS’s “Love Yourself: Her” Becomes Their 7th Album To Be Certified Gold In UK


Gold theft worth Rs 1 Lakh reported at Vasco; Suspect recorded on CCTV


Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.