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2 min read | Updated on February 12, 2025, 17:46 IST
SUMMARY
Association of Mutual Funds in India (AMFI) data has revealed that net inflows into gold ETFs have climbed to ₹3,751.4 crore in the month of January, growing from just ₹640 crore in December 2024. Many reasons including geopolitical tensions and market volatility are contributing to this surge.
Gold offers a risk premium, which is the value expected to be added to the metal due to global uncertainty and market volatility
Net inflows in gold exchange-traded funds (ETFs) have climbed to ₹3,751.4 crore in January 2025 from the nine-month low figure of ₹640.16 crore in December 2024, marking a stellar growth of 486%, according to the Association of Mutual Funds in India (AMFI) data. This is the highest-ever monthly net inflow recorded in Gold ETFs.
A gold ETF tracks domestic prices of physical gold. It is a convenient way of investing in gold without storage or authenticity concerns.
Gold ETFs hit a new record in the first month of 2025, while its previous record-high was seen in October 2024 when it jumped to ₹1,961.57 crore.
Additionally, net assets under management of gold ETFs increased by 16.24% in January to ₹51,839.39 crore from ₹44,595.60 crore in December.
“Ongoing volatility in domestic and global equity markets heightened investors' risk aversion, leading many to seek refuge in gold ETFs, which are traditionally considered safe-haven assets,” CNBC-TV18 quoted Himanshu Srivastava, Associate Director-Manager Research at Morningstar Investment Research India, as saying.
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