Gold ETF in India: Domestic investment in Gold ETF (Gold Exchange Traded Fund) increased four times during the last year i.e. 2024. The enthusiasm of investors in India regarding gold ETFs can be gauged from the fact that except April this year, inflows were recorded in gold ETFs during the remaining 11 months.
2024 also ended on a positive note and investment in gold ETFs increased for the 9th consecutive month in December amid softening gold prices.
According to data from the Association of Mutual Funds in India (AMFI), there was a net investment of Rs 640.16 crore in a total of 18 gold ETFs in the country during December 2024, which is 625 percent more than the same period last year i.e. December 2023, During the same period last year, there was a net investment of only Rs 88.31 crore in total 15 gold ETFs of the country. If compared to the previous month i.e. November, there has been a decline of 49 percent. There was a net investment of Rs 1,256.72 crore in gold ETFs during November 2024.
In this way, there was a total net investment of Rs 11,266.11 crore in Gold ETFs during the entire calendar year 2024, whereas during the calendar year 2023, a net investment of Rs 2,923.81 crore was recorded. A total of Rs 458.79 crore was invested in 11 gold ETFs during the calendar year 2022.
Why are people investing heavily in Gold ETFs?
According to experts, the fall in gold prices during December encouraged investors to invest in gold ETFs. There was a decline of about 1 percent in gold prices in the domestic market in December, Earlier, after 5 consecutive months of rise, gold had fallen by almost 3 percent in November. Also, in view of the possibility of no further series of Sovereign Gold Bond being launched and the changes made in tax rules, people are investing heavily in Gold ETFs.