Inflow Of Rs240 Bn In Commodity ETFs In 1 Year
FinTech BizNews Service
Mumbai, April 23, 2025: Gold has delivered a stellar performance in the first four months of 2025 till date.
Siddharth Srivastava, Head – ETF Product & Fund Manager, Mirae Asset Investment Managers (India), has useful insights on Gold ETFs:
“Gold and Silver ETFs are seeing good demand from the investors. In Last one year, commodity ETFs have seen inflow of around 24,000 Cr and almost 13,500 Cr in last 6 months taking the total AUM to more than 74,000 Cr as of March 31, 2025. Both folio count and exchange trading has also increased. This is driven by the good performance of both precious metals and increasing acceptance of commodity ETFs which provides low cost, safe, high purity and highly liquid way of investing in these precious metals.
Tailwinds supporting gold prices continue to exist—geopolitical issues, concerns around U.S. tariffs, increasing chances of a U.S. recession, higher inflation and weakness in the US Dollar. We're also seeing central banks around the world continuing to buy gold. All of this is still providing support to gold prices, though we are seeing cooling down of demand in jewellery market. The Gold has already shown a strong one-way rally with 1 year return around 30% with several of the aforementioned factors being priced in. While underlying supporting factors for gold continues, some consolidation or price correction may happen. Anyone looking to invest now should do so from a long-term asset allocation perspective and not just for short-term gains. In current scenario, invest in staggered manner with an eye on potential opportunity due to market volatility/dip.”
