There is a move towards more efficient forms of financial gold assets like gold ETFs, gold funds and sovereign gold bonds, said Chirag Mehta, senior fund manager-alternative investments at Quantum AMC.
Speaking in an interview with CNBC-TV18, he said, “Last month we added Rs 680 crore of net flows to gold exchange-traded funds (ETFs) in India. There is a move towards more efficient forms of financial gold assets like gold ETFs, gold funds and sovereign gold bonds. So, we are seeing a pickup in these forms of buying of gold and it is here to stay now.”
“We have seen a significant jump in assets under management (AUM) lead by an increase in gold prices and more so by flows. So we are seeing incremental buying and even in terms of investor addition, it has been a significant jump; for FY20 alone, in gold ETFs, we have added more investors,” said Mehta.
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