Gold ETFs see outflows of $405m in 11 months in India
Mumbai-India (June 6) The decline in gold prices has got investors in India exiting gold funds. Be it retail investors, corporates, banks or foreign institutional investors, all four categories of investors have exited from gold ETFs. The total folio count of gold exchange traded funds (ETFs) in the country dropped by 63,065, according to available data.
The retail folio in gold ETFs fell by nearly 7% during the second half of the financial year ended March 31, 2014, as compared to a 5% decline in the first half of FY14.
Data showed that investors continued to exit gold ETFs for the eleventh straight month, with consolidated outflows amounting to Rs 24 billion till April. In May, assets of gold ETFs fell by 1.7% to $1.4 billion (Rs 85.27 billion), amidst outflows of $24 million (Rs 1.46 billion) in April.
Overall, the industry has lost 3 million folios, with the total folio count of the industry dropping from 42 million in March 2013, to 39 million in March 2014.