Gold ETFs steady AUM, retail investors hold lion’s share

Assets of these ETFs had declined for three years till 2015

After witnessing a long spell of outflows, gold ETFs have seen their asset under management stabilise with retail investors now holding a lion’s share.

The rush for systematic investment plans (SIPs) has ensured that retail investors now have the largest share of assets in the gold-backed ETFs. That, when the yellow metal has lost shine as investors steadily shifted to financial assets from physical assets.

According to a report, at the end of September quarter, retail investors accounted for 44.63 per cent of the Rs 6,215 crore total assets managed by gold ETFs. That share has gone up from 33.2 per cent that they had at the same time last year.

The report said retail investors, those who have been investing systematically in gold ETFs through the feeder funds, have remained consistent all this while.

The asset under management of gold ETF has remained stable at around Rs 6,200 crore in last two years even as other MF categories saw AUMs swell. Gold ETF assets declined steadily for three years till 2015. In 2012, when the gold prices were on a bull run, gold ETF AUMs had touched Rs 12,000 crore.

Amfi data shows the total infusion in mutual fund schemes in the first seven months (April to October) of this financial year has touched Rs 2.5 lakh crore.\

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