Gold ETFs Saw Robust Inflows in India

SEATTLE (Scrap Monster): The investments in Indian gold-backed exchange traded funds (ETFs) continued to remain robust in the opening month of 2020.

The Association of Mutual Funds in India declared that the assets managed by 11 funds in the country surged to 62 billion rupees in January this year. This is notably higher by over 31% when compared with the same month a year before. It must be noted that the assets had touched a record high of 120 billion rupees in January 2013.

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According to fund managers, the inflows into gold ETFs are likely to continue for at least the next couple of years. This will take the assets close to the record high level recorded in 2013. The anticipated volatility in equity markets on account of global slowdown in economic growth and rising geopolitical tensions coupled with better returns delivered by gold in comparison to other asset classes will remain as the key drivers to rising gold investment demand, they said.

On the other hand, the gold imports by the country almost halved in January 2020, on muted gold jewellery demand. The cumulative imports during Apr ’19 to Jan ’20 have declined by nearly 9% over the corresponding period a year before. Consequently, the country trimmed its current account deficit to $133.27 billion.