Investors lock profit in Gold ETF, take out Rs 588cr in Apr-Nov........!

Gold exchange traded funds (ETFs) saw an outflow of Rs 69 crore in November, taking the total to Rs 588 crore in the first eight months of the current fiscal, mainly due to profit booking.

The latest funds pullout follows investors bringing in a net Rs 20 crore in October, its inflow in nearly three and a half years, driven mostly by a rise in demand during the festive season.

The outflow meant assets under management (AUM) of gold funds plunged by more than 5 percent last month.

Accordin to the latest data available with Association of Mutal funds in India (AMFI), a net sum of Rs 69 crore was pulled out of 14 gold-linked ETFs in November.This takes the total outflow of Rs 588 crore in the first nine months (April-November) of the ongoing fiscal, 2016-17.

The Asset base of gold exchange traded funds dropped to Rs5,737 crore at the end of November from Rs6,047 crore in october end.

Trading gold ETF segment has been tepied funds in the last three financial years too. They had witnessed an outflow of Rs 903 crore Rs1,475 crore and Rs2,293 crore in2015-16 2014-15 and 2013-14 respectively.

The pace of outflow slowed in 2015-16 as against the preceding two years on account sluggish equity market.

    "Globally, too, November has been a weak month, marked by outflows in gold ETFs as financial markets remained positive, post (Donald) Trump's victory. That domestic gold delivered about 15 per cent in the past one year could also have seen some investors, who were waiting for opportunities to exit, book profits in the instrument," she said. Gold ETFs are passive investment instruments that are based on gold prices and invest in gold bullion. There is a complete transparency on the holdings of an ETF because of its direct gold pricing.

Read more at: http://www.moneycontrol.com/news/market-news/investors-lock-profitgold-etf-take-out-rs-588-crapr-nov_8096661.html?utm_source=ref_article

"Globally, too, November has been a weak month, marked by outflows in gold ETFs as financial markets remained positive, post (Donald) Trump's victory. That domestic gold delivered about 15 per cent in the past one year could also have seen some investors, who were waiting for opportunities to exit, book profits in the instrument," she said. Gold ETFs are passive investment instruments that are based on gold prices and invest in gold bullion. There is a complete transparency on the holdings of an ETF because of its direct gold pricing

Read more at: http://www.moneycontrol.com/news/market-news/investors-lock-profitgold-etf-take-out-rs-588-crapr-nov_8096661.html?utm_source=ref_article

"Globally, too, November has been a weak month, marked by outflows in gold ETFs as financial markets remained positive, post (Donald) Trump's victory. That domestic gold delivered about 15 per cent in the past one year could also have seen some investors, who were waiting for opportunities to exit, book profits in the instrument," she said. Gold ETFs are passive investment instruments that are based on gold prices and invest in gold bullion. There is a complete transparency on the holdings of an ETF because of its direct gold pricing

Read more at: http://www.moneycontrol.com/news/market-news/investors-lock-profitgold-etf-take-out-rs-588-crapr-nov_8096661.html?utm_source=ref_article

"Globally, too, November has been a weak month, marked by outflows in gold ETFs as financial markets remained positive, post (Donald) Trump's victory. That domestic gold delivered about 15 per cent in the past one year could also have seen some investors, who were waiting for opportunities to exit, book profits in the instrument," she said. Gold ETFs are passive investment instruments that are based on gold prices and invest in gold bullion. There is a complete transparency on the holdings of an ETF because of its direct gold pricing

Read more at: http://www.moneycontrol.com/news/market-news/investors-lock-profitgold-etf-take-out-rs-588-crapr-nov_8096661.html?utm_source=ref_article