Gold exchange-traded funds (ETFs) offered by domestic mutual funds logged their first monthly outflows in five months.
In July, these investment vehicles saw net outflows — the difference between the amount mobilised and the redemptions — of Rs 457 crore.
This was only the third month of net outflows in the past year.
The latest bout of outflows come amid a sharp surge in the equity markets.
In July, the benchmark Nifty rallied nearly 9 per cent. Typically, risk assets and safe havens, such as gold, move in opposite directions. When markets tend to correct, investors seek refuge in gold.
Globally, over $4.5 billion got yanked out of gold ETFs. So far this calendar year, however, gold ETFs have seen net inflows of $10 billion.
By comparison, inflows into domestic gold ETFs are muted at Rs 490 crore on a year-to-date (YTD) basis. Domestic gold prices are up 7 per cent YTD, even as the Nifty is flat after the latest upmove.
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