Gold ETF Assets Surged Significantly in 2021

SEATTLE (Scrap Monster): The digital gold investments by Indians increased significantly during the previous year. The gold ETF assets rose nearly 27% in 2021, driven by robust demand from across sectors.

The latest data published by the Association of Mutual Funds in India (AMFI) indicates that the assets under management (AUM) of gold ETFs stood at INR 18,405 crore as at the end of December 2021. This compares with the AUM that had totalled INR 14,480 crore in the initial month of 2021.

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Many Indian switched to digital gold purchases, especially after the rapid surge of Covid-19 pandemic imposed nation-wide lockdown. Gold ETFs emerges as an alternative investment instrument for millennials, following the slowdown in equity markets. The volume of gold ETF folios more than tripled from 9.7 lakh in 2020 to 32.1 lakh in 2021. The ease of purchasing gold ETFs boosted folio expansion.

The gold ETFs witnessed inflows of INR 313 crore in the month of December 2021 alone. Despite considerable outflows during the year, the global gold ETF holdings continued to remain significantly above pre-pandemic levels.

N.S. Venkatesh, Chief Executive, AMFI stated that 2021 has been a remarkable year of growth for MFs with hike in inflows across various fund categories. The tremendous growth during the previous year has set the ball rolling for the MF industry in 2022, he added.