Gold ETFs log Rs 195-cr outflow in November on profit booking

After attracting funds in October, gold exchange-traded funds (ETFs) witnessed a net outflow of Rs 195 crore last month primarily due to profit booking amidst a rally in the markets.

By comparison, the segment had attracted a net inflow of Rs 147 crore in October and Rs 330 crore in September. Prior to that, gold ETFs saw a net withdrawal of Rs 38 crore in August, data with Association of Mutual Funds in India (Amfi) showed.

"The latest outflow could be attributed to profit booking amidst the rally in the markets and gold demand in the households for the prevailing wedding season," Priti Rathi Gupta, founder of LXME, said.


While the fund inflow in October was mainly on account of festive season demand as investors might have chosen to buy physical gold. Overall, the gold ETF category has received a net inflow of Rs 1,121 crore so far this year, the data showed.

Despite the outflow, the assets under management (AUM) of the instrument surged to Rs 20,833 crore at the end of November from Rs 19,882 crore at October-end. Also, folios rose by over 11,800 to 4.68 million during the period under review.