The safe-haven asset saw an infusion of ₹7.68 crore in November. However, it had seen a pull out ₹31.45 crore in October. Such funds saw an infusion of ₹44 crore in September and ₹145 crore in August.
The latest monthly inflow was the highest one since December 2012, when gold ETFs saw a net infusion of ₹474 crore.
“Gold ETFs witnessed a strong net inflow in the month of January. This was significantly higher than ₹27 crore, which the segment received in the month of December. Geopolitical tensions in different parts of the globe and slowdown in global economy led investors to opt for safe-haven like gold over the last one year,” said Himanshu Srivastava, Senior Research Analyst – Manager Research, Morningstar Investment Adviser India.
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“The appeal of yellow metal enhanced recently on the back of rising concerns over the severity of the coronavirus outbreak. As the investors weigh the fallout of the epidemic, they have increased their allocation to gold for its safe-haven appeal,” he added.
The inflows meant asset under management (AUM) of gold funds surged 7.6 per cent to ₹6,207 crore at the end of January from ₹5,768 crore at the end of December.
Gold backed ETFs are passive investment instruments that are based on price movements and investments in physical gold.
Gold eased from an over one-week peak on Friday as risk sentiment improved on hopes of global measures to soften the impact of the coronavirus outbreak, but a surge in new cases capped bullion’s losses and kept it on track for a weekly gain.