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An analysis of AUM data shows that over 50% of the total assets or Rs 13,700 crore in gold ETFs has come from individual investors in Dec 2023. Such a proportion was 45% a year ago.
Out of the total individual assets in gold ETFs, HNIs contribute Rs.10,700 crore whereas retail investors account for AUM of Rs 3,000 crore in gold ETFs.
The total AUM of gold ETFs was Rs.27,000 crore in Dec 2023.
Ashwin Patni, Head- Alternates, Product & Strategy, Axis MF attributes this healthy contribution to the convenience that gold ETFs provide to investors. He said, “Though physical gold is still popular among Indians but with gradual awareness towards gold ETFs, investors have started including them in their portfolio. Gold ETFs give investors ease to invest with lesser amount and provide more safety and security compared to physical gold.”
Sharwan Goyal Fund Manager & Head – Passive, Arbitrage and Quant strategies, UTI MF believes that many people invest in gold as it has a negative correlation with equity. He said, “People in India value gold as it has both investment and emotional value. Moreover, it is used as hedge against inflation and volatility”
