highlights
Investment in Gold ETFs decreased by 90 percent in 2022 to 459 crores.
In 2022, investors invested Rs 1.6 lakh crore in shares.
Investors preferred investing in Systematic Investment Plan (SIP).
New Delhi. gold prices (Gold Price Today) There has been a steady trend in gold ETFs, but investment in gold ETFs has decreased. Investment inflows in Gold Exchange Traded Funds to drop by 90 per cent to Rs 459 crore in 2022. This information has been received from the data of Association of Mutual Funds in India.
In 2021, an investment of Rs 4,814 crore came in Gold ETF and in 2020 Rs 6,657 crore. However, the asset base of Gold ETFs and the number of investor accounts or folios have increased in 2022 as compared to the previous year.
Investment decreased due to the high price of gold
Kavita Krishnan, senior analyst manager, research, Morningstar India, said, “Rising gold prices probably put some pressure on investors, as many held on to their investments in anticipation of a correction.” Inflationary pressure and high interest rate structure also remain a challenge in this matter.
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On the domestic front, investors found it more appropriate to invest in stocks in 2022 as compared to other asset classes. In 2022, investors invested Rs 1.6 lakh crore in stocks, which is much higher than the previous year’s figure of Rs 96,700 crore.
Apart from this, investors preferred investing in Systematic Investment Plan (SIP). He took out investments from other asset classes and put them in stocks. Positive inflows into gold ETFs helped its assets under management grow by 16 per cent to Rs 21,455 crore at the end of December 2022 from Rs 18,405 crore a year ago.
The number of folios in Gold ETFs increased by 14.29 lakhs to 46.28 lakhs by December 2022 from 32.09 lakhs by December 2021. This shows that the inclination of investors has increased towards gold funds.
What is Gold ETF?
Instead of buying gold physically, the facility of buying it like shares is called Gold ETF. This is one of the cheapest options to invest in gold. These are exchange traded funds that can be bought and sold on stock exchanges. You need to have a trading demat account to buy Gold ETFs. In this, gold is bought in units.
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Tags: 24 carat gold price, Gold ETFs, gold investment, Gold Price Today
FIRST PUBLISHED : January 22, 2023, 15:47 IST
