Index Fund Corner
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
This marks the highest-ever monthly net inflow for the category.
Why are investors rushing to Gold ETFs?
Himanshu Srivastava, Associate Director-Manager Research at Morningstar Investment Research India, said, “Ongoing volatility in domestic and global equity markets heightened investors’ risk aversion, leading many to seek refuge in gold ETFs, which are traditionally considered safe-haven assets.”
Several factors contributed to the spike in inflows:
Gold prices are rising: Gold has been climbing, making it a more attractive investment.
Market volatility: Global uncertainties and geopolitical tensions are pushing investors toward safe-haven assets.
Interest rate expectations: Anticipation of further rate cuts by central banks, including the US Federal Reserve, has increased gold’s appeal. Lower rates reduce the opportunity cost of holding gold.
Inflation hedge: Investors are using gold ETFs to diversify portfolios and hedge against inflation.
Gold prices and market trends
Gold prices hit an all-time high earlier this week but retreated on Wednesday, February 13. Federal Reserve Chair Jerome Powell’s hawkish comments on slower rate cuts weighed on gold.
- MCX Gold (April contracts): Down ₹345 to ₹85,178 per 10 grams.
- Global Gold Futures: Fell 0.18% to $2,892.76 per ounce.
Despite the dip, analysts say demand for gold remains strong due to economic uncertainties and inflation concerns.
The record-high inflows in January suggest investors see gold ETFs as a reliable hedge in uncertain times.
First Published: Feb 12, 2025 2:09 PM IST