Assets of gold exchange-traded funds (ETFs) are set to jump nearly 3 fold to hit a record over Rs. 10,000 Cr end December, 2011.
As mounting worries about major economies slipping back to recession have prompted investors to seek refuge in the haven status of the precious metal, sending its prices to near-record levels, industry executives said. Total assets of the ETFs until December 2010 were to the tune of Rs. 3,516 crore.
Minimum risk...!
The rise in assets of gold ETFs marks a shift in the preference of Indians, the world’s largest buyers of jewellery, in their investment policy, as a resurgent middle class with higher income is seeking to park funds in haven assets with minimum risks of upkeep.
According to the data by the AMFI (Association of Mutual Funds in India), by the end of August (2011), assets of the ETFs soared to Rs 7,578 crore, compared with Rs 2,639 crore in the same period last year (2010).
Five -six years ago, people seeking to invest in gold didn’t have many choices. But now, they have Gold ETF, which is in demat form and easy to handle. So its popularity is rising . Moreover, earlier people were investing in gold to offset inflation, but now there is a general surge in interest in gold investment. Global equity markets remain uncertain, so there is a rush for gold, leading to a price rise. If you consider the average rise in gold prices in the past ten years during the peak season of September to March, it's as high as 15%. So assets of the Gold ETFs are going to rise significantly.
12 Gold ETF's...!
The country first launched gold ETFs in 2007 and currently has close to a 12 Gold ETF schemes.
Fund houses, including UTI Asset Management, Kotak Mahindra Mutual Fund, Benchmark Asset Management, Reliance Capital Asset Management , Quantum Mutual Fund, SBI Mutual Fund, Religare Mutual Fund offer gold ETFs. Gold has given an average of more than 20% returns in the past 4 years.
As mounting worries about major economies slipping back to recession have prompted investors to seek refuge in the haven status of the precious metal, sending its prices to near-record levels, industry executives said. Total assets of the ETFs until December 2010 were to the tune of Rs. 3,516 crore.
Minimum risk...!The rise in assets of gold ETFs marks a shift in the preference of Indians, the world’s largest buyers of jewellery, in their investment policy, as a resurgent middle class with higher income is seeking to park funds in haven assets with minimum risks of upkeep.
According to the data by the AMFI (Association of Mutual Funds in India), by the end of August (2011), assets of the ETFs soared to Rs 7,578 crore, compared with Rs 2,639 crore in the same period last year (2010).
Five -six years ago, people seeking to invest in gold didn’t have many choices. But now, they have Gold ETF, which is in demat form and easy to handle. So its popularity is rising . Moreover, earlier people were investing in gold to offset inflation, but now there is a general surge in interest in gold investment. Global equity markets remain uncertain, so there is a rush for gold, leading to a price rise. If you consider the average rise in gold prices in the past ten years during the peak season of September to March, it's as high as 15%. So assets of the Gold ETFs are going to rise significantly.
12 Gold ETF's...!
The country first launched gold ETFs in 2007 and currently has close to a 12 Gold ETF schemes.
Fund houses, including UTI Asset Management, Kotak Mahindra Mutual Fund, Benchmark Asset Management, Reliance Capital Asset Management , Quantum Mutual Fund, SBI Mutual Fund, Religare Mutual Fund offer gold ETFs. Gold has given an average of more than 20% returns in the past 4 years.
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