Investors exit gold ETFs for 3rd year, Rs 845 cr gone in 2015

Retail investors have put in more money into equity and debt mutual funds this year

Investors continued to pull out money from gold exchange-traded funds (ETFs) in 2015 and withdrew Rs 845 crore, making it the third consecutive yearly outflow from such products.

However, the pace of outflow slowed in 2015 compared with the preceding two years on account of sluggish equity market trends, said experts.

The gold ETFs saw a net outflow of Rs 845 crore in January-November of this year, down from an outflow of Rs 1,651 crore in the entire 2014, the latest data available with the Association of Mutual Funds in India (Amfi) showed.

In 2013, the outflow stood at Rs 1,815 crore. Gold ETFs saw an inflow of Rs 1,826 crore in 2012.

This year, retail investors have put in more money into equity and debt mutual funds. Equity and equity-linked saving schemes saw an infusion of Rs 87,000 crore and debt funds attracted Rs 43,656 crore.

Of late, gold ETFs are losing their sheen a bit as gold prices are correcting and equities have fetched better returns.

The benchmark BSE Sensex has plunged by around six per cent during the period under review.

The outflow pulled down the asset base of gold funds to Rs 5,830 crore in November this year, from Rs 7,188 crore at the end of December 2014.

The mutual fund sector has 14 gold-based schemes, which have been in the market since 2006-07.