Flows into gold exchange-traded funds moderate as equities rally

May saw gross redemptions of Rs 105 crore, compared to less than Rs 6 crore in the preceding month

The surge in the equity market has taken some sheen off gold investing. In May, inflows into gold exchange-traded funds (ETFs) offered by mutual funds (MFs) dec­li­ned to their lowest level in six months. Gold ETFs saw a net inflow of Rs 288 crore – the lo­we­st since November 2020, when the industry had repor­ted a net outflow of Rs 141 crore.
 
“The lower quantum of net inflow in May could be attributed to equity markets doing well and investors diverting a relatively large portion of their investments there,” said Himanshu Srivastava, associate director-manager research, Morningstar India.
 
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