New Delhi: Gold exchange traded funds (ETFs) have witnessed an infusion of Rs 20 crore in October, making it the first inflow in nearly three-and-half years, primarily on account of rise in demand during this festive season.
Trading in Gold ETF segment has been tepid in the last three financial years. They had witnessed an outflow of Rs 903 crore, Rs 1,475 crore and Rs 2,293 crore in 2015-16, 2014-15 and 2013-14, respectively.
The pace of outflow slowed down in 2015-16 as against the preceding two years on account of sluggish equity market.
"In line with the overall demand for gold in India during the festive season, demand for gold ETFs also picked up as expected. This shows that investors are choosing this instrument as a means of investing in gold given that it is more efficient better and convenient as compared to other forms of gold purchase," Quantum AMC Senior Fund Manager (Alternative Investment Fund) Chirag Mehta said.
According to the latest data available with Association of Mutual Funds in India (Amfi), a net sum of 20 crore being poured in 14 gold-linked ETFs in October.
Taking into account the latest infusion, the outflow has reached Rs 519 crore in first seven months (April-October) of the ongoing fiscal, 2016-17.
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