Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Mutual Fund Return vs Inflation: How large inflation-adjusted corpus 25-year-old may generate on Rs 10 lakh investment by 60 years of age
    • Which Is the Better Buy?
    • How to understand a property’s real value
    • Two New ETFs Let You Trade Like A Washington Insider – Forbes Advisor
    • Active management questioned as report reveals few funds outperformed passive options
    • Mayor Eric Adams once again denied public funds for NYC re-election bid while Mamdani, Sliwa granted millions
    • OPEC Turns The Output Tap On: What It Means For Oil ETFs – United States Brent Oil Fund, LP ETV (ARCA:BNO), SPDR S&P Global Natural Resources ETF (ARCA:GNR)
    • Mutual fund industry sees 7 times growth in 10 years; passive investing gains momentum: Motilal Oswal
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»ETFs»Gold ETFs: Is this the right time to put your money in gold ETFs amid equity funds’ underperformance?
    ETFs

    Gold ETFs: Is this the right time to put your money in gold ETFs amid equity funds’ underperformance?

    February 14, 2025


    In the midst of global economic uncertainty and the potential for gold to outperform equity investments, the spotlight is on gold exchange-traded funds (ETFs). According to data from the Association of Mutual Funds in India (AMFI), net inflows in gold ETFs surged to Rs 3,751.4 crore in January 2025 from a nine-month low of Rs 640.16 crore in December 2024, representing an impressive growth of 486%. This marks the highest monthly net inflow ever recorded for Gold ETFs.

    In January 2025, Gold ETFs achieved a new all-time high, surpassing the previous record set in October 2024 when it reached Rs 1,961.57 crore. Moreover, the net assets under management of gold ETFs saw a 16.24% increase in January, rising to Rs 51,839.39 crore from ₹44,595.60 crore in December.

    Gold ETFs in January 2025

    A gold ETF mirrors the domestic prices of physical gold, offering a convenient avenue for investing in gold without the need to worry about storage or authenticity issues.

    The Gold ETF’s assets under management (AUM) experienced a 16% increase, rising from Rs 44,595 crore in December to Rs 51,839 crore in January. Year-over-year, the AUM saw a substantial 87% surge, escalating from Rs 27,778 crore in January 2024.

    “The recent discontinuation of the Sovereign Gold Bond (SGB) scheme by the central government, due to high borrowing costs, has driven increased interest in gold as an asset class. With no new SGB tranches being issued, investors are shifting their focus to Gold ETFs as an alternative risk-free gold investment. This, along with the recent rise in gold prices, has further fueled demand, making gold a prominent investment choice,” said Shweta Rajani, Head – Mutual Funds, Anand Rathi Wealth Limited. 

    Net inflows in Gold ETFs have surged to Rs 3,751.4 crore in January 2025, a sharp rise from the nine-month low of Rs 640.16 crore in December 2024, making a growth of 486%. This is highest ever monthly net cash inflow recorded in Gold ETFs. Additionally, net assets under management of gold ETFs increased by 16.24% in January to Rs 51,839.39 crore from Rs 44,595.60 crore in December.

    Months    INR in Crore    MoM Growth

    Jan-25    3,751.42         486.01%
    Dec-24    640.16           -49.06%
    Nov-24    1,256.72     -35.93%
    Oct-24    1,961.57       59.09%
    Sep-24    1,232.99     -23.48%
    Aug-24    1,611.38      20.49%
    Jul-24    1,337.35       84.17%
    Jun-24    726.16         -12.24%
    May-24    827.43        -309.11%
    Apr-24    -395.69        -205.98%
    Mar-24    373.36        -62.56%
    Feb-24    997.22        51.68%
    Jan-24    657.46        644.48%

    Gold vs Equity

    In the last three months, November 24, December 24 and January 25, the return of gold is -3.20%, -0.38% and 7.23%, respectively. Returns and inflows are directly correlated which shows the tendency of people buying past performance and supports the logic of recency bias.
     

    One should understand their risk-adjusted efficiency ratio to decide whether it’s optimal to invest or not. Nifty has delivered the best return while adjusting risk in a 5 year time frame with a higher efficiency ratio.

    Should you invest in Gold, Gold ETFs?

    Rajani observed that Gold has not been a consistent performer compared to equity. 

    “Gold’s returns have fluctuated widely over a 5-year period, with a low of just 1.73%, highlighting its volatility. Considering recent market fluctuations and the rise in demand, gold’s prices remain unpredictable. This unpredictability makes it a less dependable asset class for investment compared to Nifty, which has shown stable and consistent returns over the last 25 years. Given this volatility, over reliance on Gold could lead to portfolio instability. Hence, it is advisable to limit gold exposure to a maximum of 5-10% of the overall portfolio to maintain diversification while mitigating risk,” Rajani said.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Which Is the Better Buy?

    August 6, 2025

    Two New ETFs Let You Trade Like A Washington Insider – Forbes Advisor

    August 6, 2025

    OPEC Turns The Output Tap On: What It Means For Oil ETFs – United States Brent Oil Fund, LP ETV (ARCA:BNO), SPDR S&P Global Natural Resources ETF (ARCA:GNR)

    August 6, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Mutual Fund Return vs Inflation: How large inflation-adjusted corpus 25-year-old may generate on Rs 10 lakh investment by 60 years of age

    August 7, 2025

    Qu’est-ce qu’un green bond ?

    December 7, 2017

    les cat’ bonds deviennent incontournables

    September 5, 2018

    ETF : définition et intérêt des trackers

    May 15, 2019
    Don't Miss
    Mutual Funds

    Mutual Fund Return vs Inflation: How large inflation-adjusted corpus 25-year-old may generate on Rs 10 lakh investment by 60 years of age

    August 7, 2025

    Mutual Fund Return vs Inflation: A 1 lakh lump sum investment at a 12 per cent…

    Which Is the Better Buy?

    August 6, 2025

    How to understand a property’s real value

    August 6, 2025

    Two New ETFs Let You Trade Like A Washington Insider – Forbes Advisor

    August 6, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    What do massive deficits mean for your bond portfolio? – BNN Bloomberg

    October 28, 2024

    La municipalité de la région de l’Est met fin aux contrats de stationnement conclus avec Batic Investments and Logistics Unit -Le 06 mars 2025 à 16:47

    March 6, 2025

    Rock Island County receiving funds for Job Training and Economic Development Program

    August 9, 2024
    Our Picks

    Mutual Fund Return vs Inflation: How large inflation-adjusted corpus 25-year-old may generate on Rs 10 lakh investment by 60 years of age

    August 7, 2025

    Which Is the Better Buy?

    August 6, 2025

    How to understand a property’s real value

    August 6, 2025
    Most Popular

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025

    ZIG, BUZZ, NANC, and KRUZ

    October 11, 2024
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.