New Delhi, Nov 14 (PTI) Gold exchange-traded funds (ETFs)continued to lose sheen as an investment class, with investorspulling out over Rs 420 crore from such instruments in April-October 2017, as per the latest data by mutual fund body Amfi.
Moreover, trading in gold ETF has been lukewarm in thelast four fiscals. It had witnessed an outflow of Rs 775 crorein 2016-17, Rs 903 crore in 2015-16, Rs 1,475 crore in 2014-15and Rs 2,293 crore in 2013-14.
On the other hand, equity and equity-linked saving scheme(ELSS) saw an infusion of over Rs 96,000 crore during thefirst seven months (April-October) of the ongoing financialyear. This included an investment of close to Rs 17,000 crorein the last month alone.
Stock markets have been on an upswing, touching new highsthis year.
"Investors have been opting for equity over gold andother asset classes in the past few years as equities havegiven them good return," Anshul Saigal, portfolio manager atKotak Mutual Fund said.
Gold ETFs are passive investment instruments that arebased on price movements and investments in physical gold.
"While demand from India has traditionally buttressedgold prices globally, sound rally in the Indian equity marketshas meant that gold as an asset class has not been favoured. Astrong Indian equity market may mean a sober outlook forgold," Vidya Bala, head of MF Research at FundsIndia.com said.
According to the latest data available with theAssociation of Mutual Funds in India (Amfi), a net sum of Rs422 crore was pulled out from 14 gold-linked ETFs duringApril-October period this year.
In comparison, a net amount of Rs 519 crore was withdrawnfrom the instrument in the year-ago period.
The outflow meant assets under management (AUM) of goldfunds plunged to Rs 5,017 crore at October-end from Rs 5,480crore at the end of March.
Withdrawal of Rs 66 crore was seen in April this year, Rs71 crore in May, Rs 81 crore in June, Rs 38 crore in July, Rs58 crore in August, Rs 74 crore in September and another Rs 34crore in October. PTI SP ADISBT.
This is unedited, unformatted feed from the Press Trust of India wire.