Gold exchange traded funds lose sheen on poor returns and gold bonds

The slump in gold prices and the emergence of sovereign gold bonds (SGB) seem to have spelt the death knell for gold exchange traded funds (ETFs). 

Assets of gold ETFs have reduced by more than a third in the last five years to Rs 4,571 crore. Gold ETFs have seen net outflows of Rs 4,701 crore, with net inflows in only two of the past 60 months, data from Association of Mutual Funds in India shows. 

Returns for gold ETF schemes have averaged 2.7 per cent for a five-year period. In comparison, the benchmark Sensex has returned in excess of 70 per