<p>Gold ETFs witnessed an inflow of Rs 908 crore in August, for fifth month in a row, amid major economies staring at recession due to the spread of coronavirus pandemic. </p>.<p>With this, net inflow in gold exchange-traded fund or ETF category reached at Rs 5,356 crore in January-August period of 2020, data with the Association of Mutual Funds in India (Amfi) showed.</p>.<p>According to the data, a net sum of Rs 908 crore was pumped into gold-linked ETFs last month, higher than the net Rs 921 crore in July.</p>.<p>The inflows meant assets under management (AUM) of gold ETFs climbed by over 4 per cent to Rs 13,503 crore at the end of August from Rs 12,941 crore at July-end.</p>.<p>Month-wise, investors put in a net Rs 202 crore in January, Rs 1,483 crore in February, but withdrew Rs 195 crore in March on profit-booking.</p>.<p>Inflows resumed in April at Rs 731 crore, followed by Rs 815 crore in May and Rs 494 crore in June.</p>.<p>"Gold prices came off its all-time high in August, after witnessing almost an uninterrupted rally this year. This probably provided a good entry point for investors to invest in yellow metal," said Himanshu Srivastava, Associate Director Manager Research at Morningstar India.</p>.<p>" With all major economies staring at recession due to the spread of coronavirus pandemic, gold, with its safe-haven appeal, has emerged as one of the best performing asset classes and a preferred investment destination among investors," he added.</p>.<p>Srivastava further said the surge in coronavirus cases has cast a doubt on the swift recovery hopes and investors continue to hedge their exposure to riskier assets by investing a portion of their assets in gold, as it is seen as a safe haven in times of uncertainty.</p>.<p>Harsh Jain, co-founder and COO of Groww, said many investors are anxious regarding the markets in such times and therefore are using gold ETFs as a safe haven to park money.</p>.<p>Considering the threat posed by the pandemic to the global economy and the markets, Srivastava said the segment may continue to gain traction from investors.</p>.<p>Gold functions as a strategic asset in an investor's portfolio, given its ability to act as an effective diversifier and alleviate losses during tough market conditions and economic downturns, he added.</p>
<p>Gold ETFs witnessed an inflow of Rs 908 crore in August, for fifth month in a row, amid major economies staring at recession due to the spread of coronavirus pandemic. </p>.<p>With this, net inflow in gold exchange-traded fund or ETF category reached at Rs 5,356 crore in January-August period of 2020, data with the Association of Mutual Funds in India (Amfi) showed.</p>.<p>According to the data, a net sum of Rs 908 crore was pumped into gold-linked ETFs last month, higher than the net Rs 921 crore in July.</p>.<p>The inflows meant assets under management (AUM) of gold ETFs climbed by over 4 per cent to Rs 13,503 crore at the end of August from Rs 12,941 crore at July-end.</p>.<p>Month-wise, investors put in a net Rs 202 crore in January, Rs 1,483 crore in February, but withdrew Rs 195 crore in March on profit-booking.</p>.<p>Inflows resumed in April at Rs 731 crore, followed by Rs 815 crore in May and Rs 494 crore in June.</p>.<p>"Gold prices came off its all-time high in August, after witnessing almost an uninterrupted rally this year. This probably provided a good entry point for investors to invest in yellow metal," said Himanshu Srivastava, Associate Director Manager Research at Morningstar India.</p>.<p>" With all major economies staring at recession due to the spread of coronavirus pandemic, gold, with its safe-haven appeal, has emerged as one of the best performing asset classes and a preferred investment destination among investors," he added.</p>.<p>Srivastava further said the surge in coronavirus cases has cast a doubt on the swift recovery hopes and investors continue to hedge their exposure to riskier assets by investing a portion of their assets in gold, as it is seen as a safe haven in times of uncertainty.</p>.<p>Harsh Jain, co-founder and COO of Groww, said many investors are anxious regarding the markets in such times and therefore are using gold ETFs as a safe haven to park money.</p>.<p>Considering the threat posed by the pandemic to the global economy and the markets, Srivastava said the segment may continue to gain traction from investors.</p>.<p>Gold functions as a strategic asset in an investor's portfolio, given its ability to act as an effective diversifier and alleviate losses during tough market conditions and economic downturns, he added.</p>