Gold saving funds see Rs 864-crore net inflow in April, shows data

Gold saving funds and gold ETFs saw net inflows of Rs 864 crore in April amid uncertain economic environment in the wake of the second Covid wave.

Positive flows are expected to continue in the financial year 2021-22 as the precious metal remains an under allocated asset in investor portfolios in these uncertain times, said Chirag Mehta, senior fund manager-alternative investments at Quantum Mutual Fund.

Gold saving funds and gold ETFs have seen net inflows to the tune of Rs 184 crore and Rs 680 crore, respectively, in April, showed the data provided by Morningstar India. This comes following net inflow of over Rs 3,200 crore in gold funds in the entire 2020-21, while the same for gold ETFs was more than Rs 6,900 crore.

“The sharp and intense surge in Covid cases this year has fanned hopes that, as an asset class, gold may continue to perform well in the current environment,” Himanshu Srivastava, associate director, Morningstar India.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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