Investors continued to pull out money from gold Exchange-Traded Funds (ETFs) making it the fifth consecutive year of outflow from such products. As per the data compiled by Association of Mutual Funds in India (AMFI), the asset under management (AUM) of gold funds plunged by 12% to Rs 4,855 crore in 2017.
A net sum of Rs 730 crore was pulled out of 14 gold-linked ETFs in 2017 as compared to Rs 942 crore in 2016. It had witnessed an outflow of Rs 891 crore, Rs 1,651 crore and Rs 1,815 crore in 2015, 2014 and 2013, respectively. However, in 2012, gold ETFs saw an inflow of Rs 1,826 crore.
Gold ETFs are passive investment instruments that are based on price movements and investments in physical gold.