Gold ETFs acquire patina of 4-year low investment in FY23, shows data

Returns, however, beat other asset classes

Gold burnished its image as the go-to asset class during turbulent times. However, investors seemed to have missed the bus. Net inflows into gold exchange-traded funds (ETFs) plunged to a four-year low of Rs 653 crore in 2022-23 (FY23), even as gold emerged as the top-performing asset class.

Gold ETFs delivered returns of 14 per cent last financial year. By comparison, the benchmark S&P BSE Sensex and the National Stock Exchange Nifty delivered near-zero returns.

Investment advisors say that investor interest in any asset class is driven by past returns. Since equities delivered the highest returns in 2020-21 (FY21) and