Chennai: Rising gold prices rekindled the investor interest in gold-back exchange traded funds in 2024 as the net assets grew by 63 per cent while gaining over 17,200 crore. The net assets under management (AUM) of gold ETFs stood at Rs 27,326 crore at the end of December 2023. It went up by 63 per cent or Rs 17,269 crore to Rs 44,595 crore at the end of December 2024. As new investors flocked towards gold ETFs, the number of folios too rose from 49,11,226 to 64,05,088 during the one-year period, as per the data of AMFI. This renewed investor interest saw the addition of three more gold ETFs in 2024, taking the total number of funds to 18. The net inflow into gold ETFs rose from modest levels in the beginning of the year to the highest level in October and moderated by the end of the year. In December 2023, the net inflow into gold ETFs stood at Rs 88 crore. It went up to Rs 1961 crore by October when the gold prices touched record high levels several times. By December, the sluggish prices saw the net inflow coming down to Rs 640 crore. “Gold ETFs seem to be gathering momentum as the outlook seems favourable and with no new sovereign gold bonds announced by RBI,” said Juzer Gabajiwala, Director at Ventura Securities. Global investor appetite for gold ETFs too finally turned around in 2024, booking the first annual inflow in four years, according to the World Gold Council. A rocketing gold price, alongside a small but positive $3.4 billion net inflow across physically-backed global gold ETFs, pushed their total AUM to jump by 26 per cent in 2024 to $271 billion. Collective holdings, however, fell slightly 0.2 per cent in 2024. Flows of global physically backed gold ETFs remained positive in December, adding $778 million with Asia and European funds leading the inflows.
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