16
Monday
September 2019
12:05 PM IST
News Headlines
Sourabh wins Vietnam Open Super 100 title        England close in on Ashes-levelling win after Broad double        Air India posts Rs 4,600 cr operating loss in 2018-19; aims operating profit this fiscal        SBI to move RBI to offer fixed-floating rate home-loans: Chairman        Hong Kong returns to violence with tear gas and Molotovs        36 people missing after boat sinks in Congo river: DRC police        Underfire PM calls up Hulk, claims 'huge' Brexit progress        Dearth of quality people in north India: Labour minister on unemployment        Will implement NRC in Haryana, says Khattar        One nation-one language will never be a reality: Jairam Ramesh        21 Indians killed in 2,050 ceasefire violations by Pak this year: MEA        We need to take advantage of India's inexperienced pace attack: Klusener        India's contrasting training camps at World Championships        Inflation under control, clear signs of revival in factory output: FM        China to lift punitive tariffs on US soybeans, pork        Former PM Cameron 'sorry' for Brexit divisions        Pakistani cleric Tahirul Qadri quits politics, resigns from party        Afghan government says elections first, peace deal after        My govt committed to the welfare of peasants & also to promote industry: Mamata        Amend Constitution to ensure use of Indian languages in SC, high courts: Paswan        
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Business News
Assets under gold ETFs jump to Rs 5,000 cr in first 4 months of FY20
 
New Delhi: Assets managed by gold exchange traded funds rose to Rs 5,079.22 crore in the first four months of the current fiscal, a period during which stock market dropped 3 per cent as investors turned to the yellow metal amid economic headwinds.

Data from Morningstar showed that assets under management (AUM) of gold ETFs (Exchange Traded Funds) have been rising since April this year.

In contrast, the 30-share Sensex has fallen 1,191.79 points or 3 per cent during the April-July period. The BSE's benchmark index suffered a massive drop of nearly 5 per cent in July compared to the previous month.

"For a long time, investors have stayed away from investing in gold ETFs/funds, as gold prices, after making a high around 2012, has retracted and remained range-bound since then. However, there has been a reversal in trend this year, with gold prices again moving up," Himanshu Srivastava, Senior Research Analyst and Manager Research, Morningstar Investment Adviser India said.

While gold as an asset class acts as a hedge against inflation, it is also a safe haven in times of economic turmoil, he said, adding that the global economy has been facing headwinds in the recent times, gold has once again found its safe haven appeal.

In April, gold ETFs AUM stood at Rs 4,594.06 crore and rose to Rs 4,606.69 crore in May. It further climbed to Rs 4,931.16 crore and Rs 5,079.22 crore in June and July, respectively, as per the data.

V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities said the US-China trade war, plunging bond yields and fears of recession have attracted safe haven buying in gold.

Gold ETFs are passive investment instruments that are based on price movements and investments in physical gold.

In this financial year, gold has given spectacular returns to investors and has outperformed stock markets handsomely, he added.

He also noted that gold would continue to attract buyers as economic uncertainties prevail and fearful investors shy away from financial assets.

Regarding stock markets yet to give positive returns in the current fiscal, Lakshmi Iyer, Chief Investment Officer (Debt) and Head Products at Kotak Mutual Fund Company, said there has been a global trend of risk aversion, which has meant less money into risk asset class like equities and money flow into safe haven asset class like fixed income and gold.

As valuations improve and markets get more clarity on how the overall macro will pan out, one could see risk on sentiment re-emerge, albeit with a lag, she added.


Air India posts Rs 4,600 cr operating loss in 2018-19; aims operating profit this fiscal
SBI to move RBI to offer fixed-floating rate home-loans: Chairman
Inflation under control, clear signs of revival in factory output: FM
China to lift punitive tariffs on US soybeans, pork
Exports decline 6 pc; imports dip 13.45 pc
Retail inflation inches up to 10-month high of 3.21 pc in August
India & Qatar to focus on hydrocarbon sector: Pradhan
Samruddhi Corridor: MSRDC ties up loans of Rs 28,000 crore
Just 19 pc employers in India bullish on hiring in Oct-Dec qtr: Survey
Alibaba's Ma steps down as industry faces uncertainty
Ahead of festivals, SBI again cuts lending rates by 10 bps
Sensex drops over 150 pts; bank, auto stocks drag
15th Finance Commission holds meeting with Raj bodies, industry
PNB puts up for sale 11 NPA accounts to recover dues of Rs 1,234 cr
States to be key drivers of growth for making India USD 5 trillion economy: Niti CEO
FinMin sets up task force to identify infra projects for Rs 100 lakh cr investment
To create jobs, C'garh govt reduces land rates for industries
India's domestic market for computer services to grow faster than exports: UN report
Indian equities subdued; banking, IT stocks top drag
Ambani rolls out JioFiber, offering minimum 100 Mpbs internet speed for Rs 699 a month
KERALA NEWS
Tipplers guzzle Rs 487 crore worth liqour during onam
 Thiruvananthapuram: Tipplers in Kerala guzzled liqour worth a record Rs 487 crore sold through state  
candidate selection for Pala by-election is an internal matter of KC(M): Chandy
Kevin Murder Case: Double life sentence for all 10 convicts
Malayalam actor, film crew stranded in Himachal village
INTERNATIONAL NEWS
Hong Kong returns to violence with tear gas and Molotovs
 Hong Kong: Hong Kong riot police fired tear gas and water cannons at hardcore pro-democracy proteste
36 people missing after boat sinks in Congo river: DRC police
Underfire PM calls up Hulk, claims 'huge' Brexit progress
Former PM Cameron 'sorry' for Brexit divisions
NATIONAL NEWS
Dearth of quality people in north India: Labour minister on unemployment
 Lucknow: Union labour minister Santosh Kumar Gangwar has said there was no dearth of employment oppo
Will implement NRC in Haryana, says Khattar
One nation-one language will never be a reality: Jairam Ramesh
My govt committed to the welfare of peasants & also to promote industry: Mamata
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