Gold ETFs record Rs 1,500 cr outflow in FY'15
Mumbai-India (Apr 22) Gold exchange traded funds have lost favour among investors as mutual fund managers pulled out nearly Rs 1,500 crore (Rs 15 billion) from these products in 2014-15 because of poor returns offered by such schemes.
This was the second consecutive yearly outflow from such funds.
According to the latest data available with Association of Mutual Funds in India, gold ETFs witnessed an outflow of Rs 1,475 crore (Rs 14.75 billion) last fiscal as compared to a withdrawal of Rs 2,293 crore (Rs 22.93 billion) by MF managers in 2013-14.
In 2012-13, gold ETFs had seen inflow of Rs 1,414 crore (Rs 14.14 billion).
The outflow led to assets under management of gold funds plunging by more than 23 per cent during the period.
Market experts attributed the outflows in past fiscal to poor returns offered by gold schemes and regulatory restrictions such as 80:20 scheme on import of the metal.