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Journalism of Courage
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.
8220;Gold ETFs will remain attractive as an asset class. A trend can8217;t be drawn from the fall in the AUMs for one short period,8221; IDBI Mutual Fund Chief Executive Debashish Mallick has told PTI.
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 drop in the first three months of 2013.
Mallick also said though it is difficult to take a call on the price movement of the yellow metal,gold ETF remains a good source for portfolio diversification for an
investor.
Similarly,Reliance MF Chief Executive Sundeep Sikka said gold remained a source of sound return for retail investors. 8220;We see gold as a very attractive return asset
class for retail investors,8221; Sikka said.
Quantum MF also said this trend of outflow may not continue in the near future.
8220;Equities have not preformed on the expected lines as projected before. Also,there is only a chance of arbitrage in the fixed income category. So,gold ETFs remain as an
attractive category despite the recent outflow,8221; Quantum MF Chief Executive Jimmy A Patel said.
He further said the latest data of outflow in gold ETF couldn8217;t be regarded as a generic trend.
