Mumbai: The sudden rise in gold prices both in the domestic as well as global markets amidst growing fears about a global growth slowdown have failed to boost inflows into Gold Exchange Traded Funds. While the pace of outflows from these schemes have slowed down during the past one month, fund managers said they are not seeing any fresh interest from small investors.
“We are yet to see any major inflows into gold ETF’s,” said Chandresh Kumar Nigam, MD and CEO of Axis Mutual Fund. Mr Nigam believes it is too early to witness any meaningful trend reversal in fund flows as gold prices started rallying higher only for the past two weeks. “The sentiment will not change overnight,” he said and added that if the upward rally in gold continues for another two to three months, investors would gradually start making fresh investments in gold products.
The yellow metal has rallied about 16 per cent making it the best performing asset class. “The sudden rally in gold prices have however slowed down the pace of outflows from gold schemes,” pointed out Dinesh Khara, MD & CEO, SBI MF. “Small investors have seen a major downtrend in gold prices just a few months back and I don’t think they would be in a hurry to invest. However, those who had invested at higher levels are now holding on to their investments in gold ETF’s,” Mr Khara added.
