MF industry AUM drops by a marginal 1%; outflows from Gold ETFs continue

Latest AMFI monthly AUM data shows Gold ETFs have seen second consecutive outflow in June to the tune of Rs 227 crore

Gold seems to be losing its shine if the redemptions from Gold ETFs are anything to by. Gold ETFs in June witnessed second consecutive net outflows to the tune of Rs 227 crore, the highest so far. In May, Gold ETFs saw Rs 41 crore net outflows. Gold ETFs have delivered an average of 35% returns in the last one year.

“Investors could have booked profits after gold touched 30,000. People who wish to accumulate gold will always continue to buy gold irrespective of the price. It makes sense for investors who invest from an asset allocation and with a time-horizon perspective to book profits from gold and realign their portfolios. I don’t think gold is losing its charm right now.  Gold will continue to be a hedge against inflation,” believes Hemant Rustagi of Wise Invest Advisors. 

The AUM of gold ETFs has fallen to Rs. 10,086 crore in June from Rs. 10,312 crore. There are 12 gold ETFs in the industry.

Among the new fund launches, Baroda Pioneer Banking and Financial Services Fund and IIFL Dividend Opportunities Index Fund together mopped up Rs 73 crore. Union KBC Asset Allocation Fund collected Rs 56 crore. Overall, sales from new schemes stood at Rs 4,516 crore in June.

The industry’s AUM dropped marginally by 1% from Rs 6.99 lakh crore in May to Rs 6.88 lakh crore in June on account of outflows from liquid funds. Liquid funds saw Rs. 25,128 crore net outflows in June. 

Equity funds which had seen net inflows of Rs 506 crore in May saw outflow of Rs 186 crore in June. The AUM of equity funds rose 5% from Rs 1.48 lakh crore in May to Rs 1.56 lakh crore in June. ELSS and fund of funds investing overseas saw net outflows of Rs 100 crore and Rs 44 crore respectively.