Chennai: Funds traded with gold exchanges (ETF) see the red purchase or the highest exchange of Rs 671 Crore in January 2022, which leads to the exit of Rs 451 Crore.
This is mainly driven by the increase in the yield of 10-year Indian government bonds and expectations about the more Hawkish US attitude.
Redemption or repurchase refers to funding home buying the ETF unit from investors.
NS Venkatesh, CEO of the Body of the Mutual Fund (AMFI), said, “In January, the price of gold was corrected behind the anticipation of the US hike interest rates and soaring crude oil prices.
Global correction in the price of this yellow metal affected the Indian market, which decided to order Their advantage last month.
“ETF Gold Folio saw the flow of RS 313 Crore funds in December 2021, according to AMFI data.
It is common that investors withdraw from liquid funds for liquidity purposes.
In the future, the price of gold is expected to stabilize at the current level and therefore and someone does not expect drastic movements in the coming months, Venkatesh added.
Clean assets under management (AUM) on January 31, 2022, fell 3% to RS 565 Crore compared to the previous month.
The average Net Aum for January 2022 stood at RS 18,183 Crore.
The total number of Gold ETF folios reached 34.6 lakh last month.
On the moon-to-month basis, ETF Gold has added two lats more new folios – from 32.1 lakh folio last month.
Lakshmi Iyer, CIO (Debt) & Head (product) in the Mahindra AMC box, said “The golden purchase of gold in the last month was the highest since 2021.
This step could be an exit of an asset allocation from the customer, when the equity and gold saw in the correction Trade last month.
“According to the World Gold Council report, ETF Gold India in the term volume saw the outflow as far as a ton in January 2022 to stand at 37 tons.
Globally, ETF Gold added 46 tons ($ 2.7 billion) to Global Aum in January 2022, the largest monthly tonnase inflow since May 2021.