The Bombay Stock Exchange on Thursday said it will keep a special window open for trading in gold ETFs (exchange traded funds) on 'Akshaya Tritiya' day on May 16.
Rising gold prices and continuing investment flow in yellow metal has pushed the size of assets held through gold exchange traded funds to an all-time high of Rs 11,198 crore.
Though gold ETFs are traded on stock exchanges, they are taxed at a higher rate.
Gold prices could hit the $3500 an ounce (oz) mark in the next 18 months - up around 13 per cent from the current levels - given the global uncertainties and aided by investment demand, said analysts at BofA Securities in a recent note. Uncertainty around Trump Administration trade policies, BofA said, could continue to push the US dollar (USD) lower, further supporting gold prices near-term.
The trend is expected to continue for a couple of months. But that hardly moves investors. Confusion, lack of knowledge and unpredictability are some reasons for gold ETF not pickling up as an investment option in India, market pundits say. The idea of gold ETF was first officially conceptualized by Benchmark Asset Management Company in India when it filed a proposal with the SEBI in May 2002.
A depreciating dollar and the uncertainty in the equity markets globally are adding to the sheen of the yellow metal. With gold prices surging 20 per cent in the last two months, Gold ETFs are back in focus.
'If you invest in sovereign gold bond, you are going to get the price rise of gold over an eight year period.' 'You're also going to get that two-and-a-half percent which the Government of India is willing to give you, treating the money that you've invested in the sovereign gold bond as a kind of a FD or a deposit.' 'That kind of return you can never get anywhere else.'
Aimed at curbing gold imports and relying more on domestic supply, the government on Monday linked Gold ETF with gold deposit scheme.
During April-July, the investor-base in gold ETFs expanded 24 per cent.
Benchmark Assent Management Company, a Mumbai-based mutual fund house, has listed India's first gold exchange traded fund (EFT) Gold BeES on the National Stock Exchange on Monday.
The decision was taken in view of significant rise in imports of gold in recent years putting pressure on current account deficit.
The net inflow in equity mutual funds plunged 76 per cent to Rs 2,258 crore in November over the preceding month amid a sharp up move in the stock market that made investors wary of higher valuation. This also marks the 21st straight month of inflows into equity schemes. Overall, the mutual fund industry registered net inflows of Rs 13,263 crore in November, slightly lower from Rs 14,045 crore seen in the previous month, data released by the Association of Mutual Funds in India (Amfi) showed on Friday.
Paper gold saves your investments from volatility, and you from hassles that come with the physical form. The chance of good returns gives that extra shine.
While the regulators -- Sebi and RBI -- are yet to issue guidelines, gold ETFs certainly look more promising.
'It makes sense to have gold in one's portfolio keeping the political and economic risks of 2024 in mind.'
With gold prices on the rise, financial institutions are trying different ways to attract the customer.
You can do so through physical gold (coins and bars), gold exchange-traded funds (ETFs), feeder funds and the e-series (popularly called, e-gold) launched by the National Spot Exchange.
According to the latest statistics from the Association of Mutual Funds of India, gold ETFs have lost 18 per cent of their investor base since May.
BSE proposes two models for making gold trading and investment transparent
In 2022, gold emerged as the top performer among all conventional asset classes with over 14 per cent returns mainly owing to the depreciation of the rupee.
Geopolitical tensions in different parts of the globe and slowdown in global economy led investors to opt for safe-haven like gold over the last one year.
Understand the pros and cons of SGBs before rushing to invest in them based on past returns.
Gold as an asset class has shown its mettle in the last one year. Especially in the past six months when the equity markets have been on a downslide, this yellow metal has continued to move northwards. And the numbers are there for all to see.
If you already hold significant amounts of equity in your portfolio, avoid MAAFs with over 60 per cent equity. But if you lack equity exposure, an aggressive MAAF may be appropriate.
As the Indian stock market gyrates to the tune of global uncertainties, investors are looking out to invest their moneys in safe haven. Gold, in virtual form, can obviously be one of those safe havens. But if you are not convinced here are 7 reasons why you must invest in gold exchange traded funds.
'It is the best avenue for investors who would like to take long-term exposure to gold.'
With a weak US dollar, rising commodity prices, rising interest rates and falling stock markets is this the right time to invest your money in gold?
The surge in volatility across the globe sparked by Russian invasion of Ukraine has led to an increase in prices of gold and silver - considered to be safe-haven investment bets. In the past month, silver funds have delivered returns of 7.34 per cent, while gold funds on an average have risen around 6 per cent. In comparison, the benchmark Nifty has declined 4 per cent. Fund managers say precious commodities act as a good hedge against inflation and phases of geopolitical uncertainty.
Gold exchange traded funds (ETFs) witnessed a net outflow of Rs 199 crore in January, making it the third monthly withdrawal in a row, with investors preferring equities over other segments on buoyant record SIP flow. This was in comparison to a net outflow of Rs 273 crore registered in the segment in December and Rs 195 crore in November. Prior to that, Gold ETFs attracted Rs 147 crore in October, data with Association of Mutual Funds in India (Amfi) showed.
Gold, a safe-haven bet, is likely to continue its record-smashing journey in the New Year, rising to Rs 85,000 per 10 grams and even Rs 90,000 level in domestic markets if geopolitical tensions and global economic uncertainties continue.
'Gold prices thrive on volatility and more so when the stock markets trend downward.'
The government's initiative to migrate SEZ data from NSDL software to ICEGATE system for streamlined reporting of import data caused double counting of gold imports, resulting in inflated figures and the issue has now been largely rectified, government sources said. The downward revision has provided the actual picture of trade deficit (difference between imports and exports), which was earlier looking very high. The deficit for November will now be revised downwards from $37.84 billion to about $32.8 billion. Similarly, there will be a revision in overall import numbers as well.
The best part is that an investor gets price appreciation and earns interest income as well, which is unique only to sovereign gold bond.
Gold burnished its image as the go-to asset class during turbulent times. However, investors seemed to have missed the bus. Net inflows into gold exchange-traded funds (ETFs) plunged to a four-year low of Rs 653 crore in 2022-23 (FY23), even as gold emerged as the top-performing asset class.
Anamika Pareek answers five most frequently asked questions about investing in silver ETFs
Gold exchange traded funds (ETFs) witnessed a net outflow of Rs 248 crore in February, making it the second consecutive month of withdrawals as investors preferred equities over other segments on record SIP flows. Net outflows from the gold ETFs were at Rs 452 crore in the month of January. Prior to that, the asset class had seen a net investment of Rs 313 crore, according to the data of Association of Mutual Funds in India (Amfi). Despite the outflows, the category witnessed an increase in net assets under management (AUM) of gold ETFs to Rs 18,727 crore at the end of February from Rs 17,839 crore in January-end.
Given the prevailing uncertainties, investors must maintain a 10-15 per cent allocation to gold in 2023.
Invest with a 5 to 7 year horizon so that you are able to ride out price volatility and benefit from the long-term trends of demand and macroeconomic shifts.
Investors pumped in a record Rs 40,608 crore into equity mutual funds in June, 17 per cent higher than in May 2024, industry body Amfi said on Tuesday. The flows into the systematic investment plans (SIPs) also reached a new high at Rs 21,262 crore for the month, which was higher than the previous high of Rs 20,904 crore recorded in May, it said. The net assets under management (AUM) for the entire MF industry on equity schemes stood at Rs 27.67 lakh crore, while the same from SIPs was Rs 12.43 lakh crore, the body said.
Young investors could allocate in the proportion of 70:20:10 to equity, debt and gold.
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