Investment in gold ETFs is increasing.
In the year 2020, a huge net investment of Rs 6,657 crore was made in Gold ETF due to the economic slowdown due to COVID-19 and sluggish US dollar.
Investment of only Rs 16 crore in Gold ETFs in 2019
Earlier in the year 2019, only a net investment of 16 crores was seen in Gold ETFs. However, after six consecutive years of net withdrawals in 2019, net purchases took place. Earlier, he was making frequent withdrawals due to global slowdown and turmoil in equity and debt markets.
Gold Fund increases more than twiceAccording to data from the Association of Mutual Funds in India, by the end of December 2020, the total wealth of the Gold Fund increased more than twice to Rs 14,174 crore from Rs 5,768 crore a year earlier.
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During the last year ie 2020, gold emerged as one of the safest investment and best performing instruments for investors. For this reason, investors invested a net investment of Rs 6,657 crore in 14 gold ETFs in 2020. During the entire 2020, net investment in Gold ETFs was seen during all the months except March and November.
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Many factors behind the attraction of Gold ETF
Himanshu Srivastava, manager research and associate director of Morningstar India, said investors were attracted to the Gold ETF due to several factors such as the economic slowdown due to the corona virus epidemic, softening of the US dollar and tensions between the US-China.