Gold ETFs unlikely to lose sheen

Despite the falling prices of the yellow metal, gold ETFs (exchange traded funds) will remain attractive as an asset class in the near future, say industry players.

“Gold ETFs will remain attractive as an asset class. A trend can’t be drawn from the fall in the AUMs for one short period,” IDBI Mutual Fund Chief Executive Debashish Mallick said.
After recording net inflows for seven consecutive months, gold ETFs witnessed a net outflow in February as investors booked profits to invest in equities and other asset classes.

The net outflows, although a small amount of Rs 8 crore, has happened on the back of falling gold prices, which witnessed a dip of around 2.5 per cent in the first three months of 2013.