Assets under gold ETFs jump to Rs 5,000 cr

Data showed that assets under management (AUM) of gold ETFs (Exchange Traded Funds) have been rising since April this year. In contrast, the 30-share Sensex has fallen 1,191.79 points or 3 per cent during the April-July period. The BSE’s benchmark index suffered a massive drop of nearly 5 per cent in July compared to the previous month. “For a long time, investors have stayed away from investing in gold ETFs/funds, as gold prices, after making a high around 2012, has retracted and remained range-bound since then. However, there has been a reversal in trend this year, with gold prices again moving up,” Himanshu Srivastava, Senior Research Analyst and Manager Research, Morningstar Investment Adviser India said.

While gold as an asset class acts as a hedge against inflation, it is also a safe haven in times of economic turmoil, he said, adding that the global economy has been facing headwinds in the recent times, gold has once again found its safe haven appeal.

In April, gold ETFs AUM stood at Rs 4,594.06 crore and rose to Rs 4,606.69 crore in May. It further climbed to Rs 4,931.16 crore and Rs 5,079.22 crore in June and July, respectively, as per the data.