Gold ETF inflows drop 34% in September – Times of India

CHENNAI: Gold ETF inflows saw a 34% decline to Rs 597 crore in September on a monthly basis, even as folios grew by 13,000. Mutual fund body Amfi CEO N S Venkatesh said that investor sentiment moved towards economic revival and the stimulus has led to investments being driven towards equity funds and away from paper gold, which was seen as a safe haven in the last few months.
“In August, there was a ‘risk-off’ mode, where people started investing in paper gold with easy access to entry and exit. Now, we see a ‘risk-on’ mode with higher risk due to gold’s volatile prices, diverting investments towards equity funds. Though gold prices are on a rising trend, they are still not as high as previous months,” Venkatesh said.
Net AUM stands at Rs 13,589 crore as of September 2020. “From the lifetime highs of Rs 56,191 per 10 gram in August, gold prices has corrected by 10.4%. Despite some correction, we do expect gold prices to shoot up during Diwali,” said Angel Broking deputy VP (commodities & currencies research) Anuj Gupta.