India's June Gold ETF Collection Up 24.6% on Year

Source:

"This was the best month in terms of investor participation."

India's gold collection under exchange-traded funds (ETF) rose 24.6% to 5.931 tons from 4.761 tons a year ago, data from the funds showed.

Collections in rupee-terms rose by 44.6%.

"This was the best month in terms of investor participation," said Arvind Chari, fund manager, Quantum Mutual Fund, which owns a gold ETF.

Investors have grown up by a 100% year-on-year, added Chari.

The Gold Benchmark Exchange Traded Scheme (GBES.NS) on the National Stock Exchange traded 0.83% higher at 1,443.75 rupees per gram at 2:54 p.m.

Though gold collections under ETFs are growing, they remain miniscule against India's imports of about 700-800 tons annually.

Gold ETFs—instruments that can be traded like shares and are backed by physical gold holdings—are more than 2 years old and the segment may get crowded with some other funds planning to enter.

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