Gold ETF inflow dips since Sept

After equities, it seems retail investors are now wary of gold exchange traded funds (ETFs), too, as the yellow metal’s prices continue to remain higher. Net inflows are fast shrinking and even investors have started moving out of this asset class offered by mutual fund houses. The first half of the current financial year witnessed robust inflows of Rs 2,658 crore, surpassing what the industry could garner in the previous financial year. The investments in gold ETFs touched its peak when investors pumped in close to Rs 1,000 crore in September. However, what followed in the second half of the year suggests lessening investors’ interest in gold. Also Read Related Stories News Now - Details of Rajiv Gandhi Equity Scheme in a month: Gujral - SBI Mutual fund launches campaign - MFs eye Rajiv Gandhi Equity Savings Scheme - Govt announces tax-exemption scheme for new investors - Jewellers body seeks abolition of gold ETFs - Redemptions in equity MFs hit 16-month high Nitin Rakesh, chief executive of Motilal Oswal Mutual Fund, notes gold is price-sensitive. “Higher prices could be one factor why investors are staying away. After Diwali, it’s an off-season; hence, a reduction in sales,” he says. “I believe that at current prices, investors have shelved their plans. Even so, if markets correct, say to Rs 23,000 or Rs 25,000, then people would put in money.”