With the rising of gold prices to new high almost every month, the investors in India have started to show a totally new-found interest in the gold funds. The gold exchange traded funds (ETFs) are new in India, but they have given an impressive returns of more than 20 per cent in the last one year. The gold fund managers in India say the ETFs collections are rising and investors are increasing by a 100 per cent year-on-year.
"Gold ETFs are continuing to pick up in India. Gold collection ETFs rose 24.6 per cent to 5.931 tonnes from 4.761 tonnes a year ago," Arvind Chari, fund manager, Quantum Mutual Fund that runs a gold ETF in India said. He also said that the gold ETFs are emerging as the fasting growing investment segment in India.
Gold ETFs in India, which was launched in 2007, are managed by six fund houses including Benchmark Asset Management as well as UTI Mutual Fund, Kotak Mahindra Mutual Fund, Reliance Capital Asset Management, Quantum Mutual Fund and the State Bank of India.
Despite of the fact that the Gold collections under the ETFs are growing in India year on year, they remain negligible when compared to India''s imports of around 700 tonnes annually.
The main problem for rapid growth of gold ETFs in India is said to the lack of awareness and complicated investment norms.
The five gold ETF funds put together hold just above five tonnes of gold. According to the World Gold Council, the Indian households own gold of about 15,000 tonnes that includes around 10 per cent of global stocks.
"Gold ETFs are continuing to pick up in India. Gold collection ETFs rose 24.6 per cent to 5.931 tonnes from 4.761 tonnes a year ago," Arvind Chari, fund manager, Quantum Mutual Fund that runs a gold ETF in India said. He also said that the gold ETFs are emerging as the fasting growing investment segment in India.
Gold ETFs in India, which was launched in 2007, are managed by six fund houses including Benchmark Asset Management as well as UTI Mutual Fund, Kotak Mahindra Mutual Fund, Reliance Capital Asset Management, Quantum Mutual Fund and the State Bank of India.
Despite of the fact that the Gold collections under the ETFs are growing in India year on year, they remain negligible when compared to India''s imports of around 700 tonnes annually.
The main problem for rapid growth of gold ETFs in India is said to the lack of awareness and complicated investment norms.
The five gold ETF funds put together hold just above five tonnes of gold. According to the World Gold Council, the Indian households own gold of about 15,000 tonnes that includes around 10 per cent of global stocks.
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