look news india
Silver ETF AUM: Amid the rise in silver prices, the demand for silver ETFs has increased. The AUM of eight silver ETFs offered by various mutual fund houses crossed Rs 5,000 crore for the first time in April. Last month, the AUM of Gold ETF reached a record Rs 31 thousand crore for the first time.
Investment in silver ETF increased in April
Investment inflows into silver ETFs have increased continuously since the beginning of the current calendar year. From January to March Rs. An investment of Rs 1500 crore has been recorded. Which will be Rs. in nine months of 2023-24. It is more than Rs 1300 crore.
According to data released by the Association of Mutual Funds in India (AMFI), in April alone, 25 AUM was worth Rs. An investment of Rs 650 crore was made. Investments in gold ETFs in the last nine months have been Rs. Registration worth Rs 550 crore was done.
In silver Rs. surge of 9500
Investment in the precious metal through silver mutual funds increased in December. Gold and silver prices have increased by 17 percent from this year's low. Silver price in Ahmedabad in the current calendar year is Rs. Increase to Rs 9500. At a peak of Rs 84000 per kg.
Precious Metal Bullish Factors
Due to geopolitical crisis, investment in safe havens increased and the precious metal gained momentum. Stocks and bonds perform negatively in such crises, and investors turn to precious metals to protect against losses caused by economic crises.
Fear of decreasing inflows in ETF
Nicholas Snowdon, metals strategist at Goldman Sachs, said gold remains bullish through mid-2022. Apart from Asian retail buying and increased investment in the precious metal by central banks, macro policies and geopolitics have kept gold and silver on the rise. The Fed is unlikely to cut interest rates this year. Due to which flows into ETFs may slow down.
What is a silver ETF?
Silver exchange-traded funds (silver ETFs) invest in silver assets. Which is managed by the mutual fund house or fund manager. An investor can earn returns by following the price of physical silver. Silver ETFs can also be invested in smaller amounts than physical silver, useful as a hedge against inflation.