Gold Etfs see 451cr outflow in January due to profit booking | Chennai News

Chennai: Gold exchange-traded funds (ETFs) saw the highest redemption or redemption on record of Rs 671 crore in January 2022, resulting in an outflow of Rs 451 crore. This was mainly driven by rising Indian 10-year government bond yields and expectations of a more hawkish stance from the US Fed. Redemption or redemption refers to fund houses that redeem ETF shares from investors. NS Venkatesh, CEO of the mutual fund organization (AMFI), said: “In January, the price of gold corrected on the expectation of a rise in interest rates of the US Fed and soaring crude oil prices. This global correction in the price of the yellow metal had an impact on the Indian market, which decided to book its profits last month.
The gold ETF folio saw a fund inflow of Rs 313 crore in December 2021, according to AMFI data. It is common for investors to withdraw liquid funds for liquidity purposes. The price of gold should stabilize at current levels, Venkatesh added.
Net assets under management (AUM) as of January 31, 2022 decreased by 3% to Rs 565 crore from the previous month. Its average net AUM for the month of January 2022 stood at Rs 18,183 crore. The total number of gold ETF folios stood at 34.6 lakh last month. On a monthly basis, the gold ETF added two lakh new folios – up from 32.1 lakh folios last month.