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Buying gold on the occasion of Diwali is considered auspicious. There are many people who buy gold on this day. However, now there is a growing demand for gold bonds or traded funds instead of physical ones. Due to this, gold exchange traded fund (ETF) investment schemes in October saw Rs. 841 crore was invested. While this figure was 175 crore rupees in the previous month. According to data from the Association of Mutual Funds in India (Amfi), the asset base of gold ETFs also increased during the period under review.
What the expert said: Melvin Santarita, analyst and research manager at Morningstar Investment Advisors India, said gold is becoming a safe haven due to current geopolitical tensions, fears of a US rate hike, high inflation and slowing growth. Demand has increased. According to the data, gold-related ETFs last month traded at Rs. 841 crore was invested, while in September it was Rs. 175.3 crores. In August category Rs. 1,028 crore was invested, the highest monthly inflow in 16 months.
Let us tell you that Diwali Gold and silver buying on the occasion of Dhanteras started on positive trend on Friday. It was boosted by improvement in consumer demand along with softening gold prices. It is worth mentioning that India is the largest consumer of gold in the world.
About Gold ETF: Let us tell you that Gold ETF is a mutual fund scheme that tracks the price of gold. One unit of gold ETF is equal to one gram of gold. In this, gold is bought in units. Selling it gives you not gold but the market price at that time. A demat account is required to invest in this. By investing in gold ETFs, you eliminate the fear of buying fake gold. With this there is no security concern.