ETF gold collection up marginally in Sept

MUMBAI: India's total gold collection under exchange-traded funds (ETFs) rose marginally at the end of September, but major funds saw some redemptions, officials said on Wednesday.

The total collection rose to 3.38 metric tonnes from 3.33 metric tonnes at the end of August, primarily on account of the latest entrant -- Kotak Mahindra Asset Management Co Ltd .

"Some people may have sold off to take profits as prices shot up," said an official at Benchmark Asset Management Co. Pvt. Ltd. that saw some redemptions.

Overseas gold prices climbed towards a 28-year high at the end of September on the back of a weak dollar.

Redemptions had also taken place in August.

ETFs are new in India and collections are miniscule compared with the country's total gold imports of around 700 tonnes, but gold fund managers are hopeful the popularity of such funds will increase as investment demand rises.

This month, an ETF from Reliance Capital Asset Management Ltd. is expected to be launched.