Assets in gold exchange-traded funds (ETFs) in India—the world’s biggest consumer—exceeded Rs. 100 billion in April as Indian investors are increasingly investing in paper gold or gold ETFs.
According to the latest data released by the Association of Mutual Funds in India (AMFI), assets under management (AUMs) in gold ETFs, stood at Rs. 102.2 billion as of 30 April 2012,more than double the Rs. 48 billion a year ago and up from Rs. 98.9 billion in March.
Experts said that the sharp growth in AUMs of gold ETFs is because of the increased awareness among retail investors about the convenience of paper gold as well as more companies offering gold ETF schemes for investments. Currently, India has around 12mutual funds offering gold ETFs
Gold is also considered as a safe investment in the country. Assets in gold ETFs also increased in April due to buying for an auspicious festival day.