Gold returns to haunt equity managers

Gold exchange-traded funds (ETFs) have emerged one of the best money-making instruments for mutual fund (MF) investors in the past year. On average, the return has been a little over 11 per cent.

This also happened at a time when investors pressed the exit button from gold and flocked to equities.

Last year, when nearly all fund managers had written off gold as an investment avenue, the metal made a strong comeback and not only outpaced the majority of the equity schemes but also proved fund managers wrong. The price of standard gold in the market here is up 11.7 per cent at Rs 29,910 for 10g against Rs 26,780 for 10g a year before. During this period, the key stock indices, struck by sharp volatility, remained by and large at the same level.

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