There is attraction towards investing in gold. There is a lot of demand for government sovereign gold bonds, physical and online gold. But the gold that we are going to talk about today, the whole country went out of their way to buy it in January. In comparison to December, people of the country purchased 7 times the amount of gold in the month of January. Let us also tell you what this gold is and from where this gold is being purchased.
7 times more shopping
The passion of the people of the country towards gold has not diminished. This can be gauged from the fact that Rs 657 crore was invested in Gold Exchange Traded Fund (ETF) in January, which is seven times more than the previous month. This information has been given by the industry organization Association of Mutual Funds in India (AMFI). Experts believe that gold is a safe option for investment amidst the ongoing tension at the global level and high inflation in America.
What is the AUM?
According to AMFI data, with this investment, the AUM of the gold fund has increased by 1.6 percent to Rs 27,778 crore by the end of January. This amount was Rs 27,336 crore at the end of December 2023. According to the data, net investment in gold ETFs in January increased to Rs 657.4 crore from Rs 88.3 crore in the previous month. Rs 6 crore was raised from the offering of Tata Gold Exchange Traded Fund.
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What do experts say?
Melvin Santarita, analyst at Morningstar Investment Research India, said that the popularity of gold is expected to remain due to the current geopolitical tension and high levels of US inflation. Under Gold ETF, the price of domestic physical gold is monitored. The investments made in this are based on the prices of gold. The amount raised under this fund is invested in bullion.