Chennai: Assets under the management (AUM) digital gold investment made by India in 2021 rose 27 percent in December 2021 compared to those at the beginning of the year.
Digital gold investment is in funds traded in exchange (ETF), where the unit represents possible physical gold in the form of paper or dematerialization.
One gold ETF unit is equal to 1GM of yellow metal.
It is supported by high-purity physical gold.
ETF Gold combines the flexibility of stock investment and the simplicity of purchasing yellow metals.
From Aum from Rs 14,480 Crore in January 2021, the Gold ETF portfolio grew to Rs 18,405 Crore at the end of December, according to the latest data from the Investment Fund Association in Indian data (AMFI).
Lakshmi Iyer, Cio-Debt & Product Head in the Mutual Fund Box, said the market saw demand from cross-sector.
“With the lem which was put in place after the second Covid wave, many Indians were sure to buy gold online, as digital gold.
We have seen higher interest in the millennium that sees ETF Gold as an alternative investment instrument when the equity market slows down,” he said.
The volume of Gold ETF folios jumped more than three times from 9.7 lakh to almost 32.1 lakh last year.
Folio penetration is driven by ease of buying Gold ETF.
“An investor who starts into the financial world has now seen gold as an important part of the asset allocation.
In 2021, newer investors will see merit in buying gold as a class of assets in digital format.
Furthermore, there are almost 2x growth in ETF folios New gold.
This is mostly because many online portals have facilitated the ease of purchasing gold as a class of assets, compared to buying physical gold during locking, “said Iyer.
For December, ETF Gold saw the inflow of RS 313 Crore.
They also bought the Gold ETF worth RS 176 Crore last month.
According to the World Gold Council report, even though there is a outflow for this year, the Global Gold ETF ownership remains significantly above the pre-pandemic level.