Equity mutual funds witnessed a net inflow of Rs 18,529.43 crore in May in comparison with the net inflow of Rs 15890.38 crore throughout the month of April 2022. Gold ETFs, nevertheless, witnessed a lower in the net inflow in May 2022 because it stood at Rs 203 crore in comparison with Rs 1100 crore in April, in accordance with AMFI’s month-to-month information for May 2022.
According to trade specialists, gold ETFs have witnessed a surge in belongings owing to their optimistic efficiency over the previous few years. This is evidenced by the constant improve in the folio numbers.
Folio numbers in Gold ETFs surged from 16 lakh in May 2021 to 45 lakh in May 2022, a rise by nearly 281%. Between April 2022 and May 2022, the quantity of folios went up by 2.23 lakh. After having witnessed outflows throughout the first two months of the year 2022, Gold ETFs began witnessing inflows in March 2022, with the magnitude of net flows amounting to Rs 203.39 crore throughout the month of May 2022.
“Gold is considered to be a good investment avenue, and a hedge against market downturns. Gold emerged as one of the better performing asset classes during the challenging investment environment posed by Covid and economic downturn, thus proving its effectiveness in investors’ portfolio,” stated Kavita Krishnan, Senior Analyst – Manager Research, Morningstar India, commenting on AMFI’s month-to-month information for May 2022.
While gold is taken into account as a protected haven and finds rather a lot of enchantment amongst traders, it lost some of its sheen as gold costs got here down put up August 2020. Prices picked up once more in January and February 2022, which doubtless gave traders a possibility to exit their investments in gold.
“Although inflows in the recent past were likely impacted as investor preferences shifted towards other avenues like Silver ETFs and equity-oriented funds, we’ve witnessed a positive trajectory over the past three months, evidenced by the inflows and an increase in the number of folios,” she added.