Gold ETF Assets Surge 37% in India

Chennai: The net asset under management of Gold Exchange Traded Funds in India grew 37 per cent in FY24, which saw net inflows every month of the fiscal. Five new ETFs were added in the year.

The AUMs of gold ETFs at the end of March 31, 2024, stood at Rs 31,223 crore against Rs 22,736 crore at the end of FY23. The AUMs achieved a growth of 37 per cent in one year. Gold prices had gone up by 6.5 per cent for the year ending March in dollar terms of 6.8 per cent in rupee terms. In March, gold ETFs saw a net inflow of Rs 373 crore.

Gold ETFs recorded positive net inflows every month of the financial year FY24, which has been a rarity in recent years. The month of August saw the highest net inflow of Rs 1028 crore. Further, five new gold ETFs were added with one each in April, November, December, January, and February. The total number of gold ETFs at the end of the fiscal stood at 17.

Globally, the scenario was different though the AUMs of global gold ETFs recorded a positive growth in March. Supported by a jump in the gold price, total assets under management (AUM) rose to $222 billion, an 8 per cent increase during the month, which was the highest in 21 months. However, gold ETFs witnessed their tenth consecutive monthly outflow in March, losing $823 million. But it was less than $2.9 billion in February. Collective holdings fell by 14 tonnes to 3,112 tonnes by the end of March, the lowest since February 2020 and 21 per cent lower than the month-end record of 3,915 tonnes in October 2020.

The situation in Asia was better in March. Asia registered non-stop inflows for the 13^th month, attracting $217 million in March. China once again led inflows as the local gold price rally attracted investors. Apart from India, Japan also recorded positive flows. Asian funds led global inflows in Q1 2024 by adding $678 million, a 7 per cent rise in holdings, and a 14 per cent jump in AUM, again boosted by a higher gold price.