Gold ETFs See 47% Inflow Drop in February Despite Record Prices, UTI Gold ETF Leads with 3.70% Returns

Gold Exchange Traded Funds (ETFs) in India witnessed a significant decline in inflows during February, dropping by 47.22% to Rs 1,979 crore despite gold prices reaching record highs. The decrease is believed to be a result of investors engaging in profit-taking activities and exploring opportunities in the equity markets. Nevertheless, there was still a substantial 99% increase in inflows compared to the previous year. UTI Gold ETF emerged as the frontrunner in terms of returns, boasting a 3.70% growth. Gold continues to be a crucial component for portfolio diversification, especially in the face of global economic uncertainties. The Assets Under Management (AUM) for gold ETFs grew by 7% to reach Rs 55,677 crore, indicating sustained investor interest in this asset class.

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