Gold ETFs see 1st-time holdings of over 100 metric tons
Gold ETFs in India took a sharp 77% dip in inflows this February, down to $565 million from January's record $2.5 billion.
Still, investors haven't lost interest: assets under management are now close to $20 billion, and holdings have crossed 100 metric tons for the first time.
Gold ETFs have seen net inflows for 9 consecutive months
Even with the slowdown, Indian gold ETFs have seen net inflows for nine consecutive months.
In January, they actually outperformed equity funds for the first time, pulling in slightly more money and growing their share of total mutual fund assets from less than 1% last year to over 2%.
Price drop led some big players to cash out
Gold prices soared to ₹1.75 lakh per 10gm in January thanks to global tensions and US tariffs, which sent investors rushing in.
A late-month price drop led some big players to cash out, but new rules from SEBI now let equity funds add gold exposure, so demand could stay strong going forward.