Gold ETF hit All -Time High Inflows in January: What is Serge Driving – CNBC TV18

Gold ETF hit All -Time High Inflows in January: What is Serge Driving – CNBC TV18

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The Gold Exchange Traded Funds (ETF) saw a huge increase in the arrival in January 2025. Investors pumped ₹ 3,751.4 crore in the Gold Exchange-Treded Fund (ETF), a sharp increase in December of 640 crores in December, according to the association of mutual funds in India (AMFI) data.

Index fund corner

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Name of the scheme 1-year back Invest now Fund category expense ratio
Axis Nifty 50 Index Fund +32.80% Invest now Equity: Big Cap 0.12%
Axis Nifty 100 Index Fund +38.59% Invest now Equity: Big Cap 0.21%
Axis Nifty Next 50 Index Fund +71.83% Invest now Equity: Big Cap 0.25%
Axis Nifty 500 Index Fund , Invest now Equity: Flexi Cap 0.10%
Axis Nifty Midcap 50 Index Fund +46.03% Invest now Equity: Mid Cap 0.28%

It marks the highest monthly net flow for the category.

Why are investors running in Gold ETF?

Associate Director-Manager Research Himanshu Srivastava at Morningstar Investment Research India said, “The ongoing instability in domestic and global equity markets increased the risk of investors, causing many people to take shelter in gold ETFs, which is traditionally protected -Hewen is considered a property. “

Many factors contributed to spike in inflow:

Gold prices are rising: Gold is climbing, causing this more attractive investment.

Market instability: global uncertainties and geopolitical stress are pushing investors towards safe-hovel assets.

Expectations of interest rate: The expectation of further cuts by central banks, including the US Federal Reserve, has increased the appeal of gold. Low rates reduce the opportunity cost of catching gold.

Inflation hedge: Investors are using Gold ETFs to diversify portfolio and to protect against inflation.

Gold prices and market trends

Gold prices reached a high level early this week, but retreated on Wednesday, 13 February. Federal Reserve Chairing was weighed over a slow rate cut on the Hawkish comments by Jerome Powell.

  • MCX Gold (April Contracts): Below ₹ 345 to ₹ 85,178 per 10 grams.

  • Global Gold Futures: 0.18% fell to $ 2,892.76 an ounce.

Despite the dip, analysts say the demand for gold remains strong due to economic uncertainties and concerns of inflation.

Record-high flow in January suggests that investors saw Gold ETF as a reliable hedge in indefinitely.

first published: February 12, 2025 2:09 pm First

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