World · India Bureau
Gold ETF inflows slip to ₹3,300 crore in October amid FoF curbs
Gold exchange-traded funds saw investor inflows moderate to ₹3,300 crore in October, declining from ₹4,450 crore in the previous month. The slowdown reflects asset management companies halting fresh subscriptions to gold funds of funds following regulatory direction from market regulator Sebi.
LSN India ·
Gold ETFs attracted inflows of approximately ₹3,300 crore during October, marking a notable deceleration from September's ₹4,450 crore, as fund houses moved to comply with regulatory restrictions on gold-linked investment products.
Asset management companies suspended fresh subscriptions to gold funds of funds following directives from the Securities and Exchange Board of India, contributing to the month-on-month decline in gold ETF inflows. The regulatory action aimed to streamline the gold investment landscape and address concerns within the sector.
The moderation in inflows reflects the broader impact of Sebi's intervention in the gold fund space. While gold ETFs continue to attract investor interest, the suspension of fund of fund subscriptions has constrained the overall growth trajectory witnessed in preceding months.
Investors seeking exposure to gold through ETFs remain active in the market despite the regulatory headwinds. Industry participants await further clarity on the regulatory framework governing gold investment products as they navigate the new compliance requirements.