An investment of Rs 815 crore came in Gold Exchange Traded Fund (ETF) in May amid stock market fluctuations due to the Corona virus crisis. The reason for this is that investors are now turning to safer investment options. The category has outperformed other properties over the past year. A total investment of Rs 3,299 crore has come in Gold ETFs since August 2019.
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According to the latest data from the Association of Mutual Funds in India (Amphi), the net investment in the May Gold ETFs stood at Rs 815 crore. It had an investment of Rs 731 crore in April. However, there was a withdrawal of Rs 195 crore in March. Earlier, it had an investment of Rs 1,483 crore in February and Rs 202 crore in January. It had an investment of Rs 27 crore in December last year and Rs 7.68 crore in November. Investors withdrew Rs 31.45 crore from this category in October.
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“The investment in gold ETFs remains high compared to the months before the epidemic,” said Harsh Jain, co-founder and chief operating officer of GRO. Many investors are preferring to invest in gold, given the fluctuations in the market. Himanshu Srivastava, senior research analyst at Morning Star Investment Advisor India, also said, “Gold emerged as a better-performing asset class and a preferred investment tool in the midst of the impact of markets around the world due to the corona virus epidemic and recession in large economies.” is.
What is Gold ETF
Like physical gold, it also gets less returns. However, it is much safer than gold ornaments kept at home. As far as purity is concerned, being in electronic form one can fully trust its accuracy. It is subject to long-term capital gains tax after three years. Loan is not available on this. It can be sold at any time on the exchange and the cost of keeping it is also very low.