Gold ETFs Posted Bullish Trend in February

SEATTLE (Scrap Monster): The gold exchange traded funds (ETFs) posted net investment for the third consecutive month in February this year. The inflows were mainly boosted by positive sentiments on account of falling gold prices, appreciating local currency and recent reduction in basic customs duty on gold imports.

The net investment to gold ETFs totalled INR 491 crore in February this year, said data published by the Association of Mutual Funds in India (AMFI). It must be noted that net investments of INR 625 crore and INR 431 crore were recorded in the months of January 2021 and December 2020 respectively. Prior to that, gold ETFs had reported outflow of INR 141 crore in November last year.

RELATED NEWS:

European Funds Raked In Major Share of Gold ETF Inflows

Gold ETF Holdings Posted Net Outflow of 84.7 Tonnes

Chirag Mehta, senior fund manager, at Quantum Mutual Fund said that gold investors are seen adding gold to their portfolio on every price correction. Incidentally, gold prices have declined by almost 9% since the beginning of this year. The medium to long term prospects of the asset class looks promising, despite near term weakness. The trend is expected to continue, he added.

Gold ETFs had seen net investment of INR 6,657 crore in 2020. All the months of the year, except March and November had reported monthly inflows.