Gold ETF Inflows Dip 47.22% in February Despite High Prices, UTI Gold ETF Leads with 3.70% Returns

Gold Exchange Traded Funds (ETFs) in India experienced a significant decrease in inflows in February, dropping by 47.22% to Rs 1,979 crore, despite gold prices reaching record highs. The decline in inflows can be attributed to profit-taking by investors and the allure of opportunities in the equity markets. Nevertheless, there was a notable 99% increase in inflows compared to the same period last year. UTI Gold ETF emerged as the frontrunner with returns of 3.70%. Gold continues to serve as a crucial component for portfolio diversification, especially in times of global uncertainty. The Assets Under Management (AUM) for gold ETFs witnessed a growth of 7% to reach Rs 55,677 crore. Investors are drawn to gold ETFs as a way to gain exposure to the precious metal without the need for physical ownership. Despite the recent drop in inflows, the long-term outlook for gold ETFs remains positive, given the ongoing economic uncertainties and market volatility.

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