New Delhi: In comparison, a net inflow of just Rs 16 crore was seen in the entire 2019. The inflow came after witnessing a net pull out from safe-haven assets for six consecutive years, mainly on fears of a global slowdown and volatility in equity and debt markets.
Assets under management of gold funds surged over two-fold to Rs 14,174 crore at the end of December 2020 from Rs 5,768 crore a year ago, data from the Association of Mutual Funds in India showed.
Gold with its safe-haven appeal emerged as one of the best performing asset classes and a preferred investment destination among investors in 2020, as investors put in a net sum of Rs 6,657 crore in 14 gold-linked ETFs.
Barring March and November, such instruments had seen a net inflow in 2020.
Himanshu Srivastava, Associate Director Manager Research, Morningstar India, said investors attracted towards the instrument due to multiple factors such as economic downturn caused due to coronavirus pandemic, weakness in the US dollar and tension between the US and China.
