Latest Indian Mutual Fund News | 27-Apr-2012


1.Goldman Sachs Gold ETF in India Sees 11 Fold Surge in Volume.

Trading in Goldman Sachs Group Inc.’s gold ETF in India surged almost 11 fold, leading an advance in gold securities, as investors bought gold to mark the auspicious Hindu festival of Akshaya Tritiya. Volumes in GS Gold BeEs, India’s biggest exchange-traded fund backed by gold, was 937,816 units on the National Stock Exchange of India Ltd. at 4:54 p.m. in Mumbai, up from 85,376 units yesterday and more than the 101,914 average daily volumes in the last six months through yesterday, according to data compiled by Bloomberg.

This is significant volume. Each unit represents about 1 gram of physical gold and therefore 937,816 units is the equivalent of some 29,170 ounces of gold which at today’s prices is some $47 million of daily volume for just one gold ETF in India. The Goldman Sachs India gold ETF is just one of many new ETFs in India. Trading in Kotak Gold ETF jumped more than eightfold to 226,032 units.

News Source - FX STREET.

2.Gold ETFs sparkle during Akshaya Tritiya.

The auspicious occasion of Akshaya Tritiya saw investors snapping up gold ETFs. Total turnover on the NSE was Rs 608 crore, compared to Rs 423.05 crore last year. On BSE, trade volumes stood at Rs 127 crore. Sales of physical gold were down. Reports indicate that 10 tonnes were sold yesterday on Akshaya Tritiya, compared to the 20 tonnes sold last year. High prices, import duty hike, the falling currency and the jewellers’ strike have all contributed to the fall in demand.

On the other hand, the MF industry witnessed huge demand this year but at a lower ticket size. The high price of the yellow metal kept a number of investors from going in for bigger purchases, say industry experts. Gold ETFs from almost all AMCs were on a roll. The NAV of 12 of the 14 gold ETFs in operation hit 52-week highs, reflecting the popularity of paper gold among Akshaya Tritiya gold buyers.

News Source - CAFE MUTUAL.

3.Retail investors switch to safer, low-risk MF options in hard times.

Despite volatile markets, weak sentiments and a faltering growth story, retail investors are not fleeing the market. On the contrary, they are adopting a new strategy to counter the current situation: shifting investment from high risk, high-return equity schemes of mutual funds to low risk, low-return debt schemes of MFs.

The number of folios in equity schemes of mutual funds declined to 37 million at the end of March 2012 from 38 million at the end of March 2011, whereas the number of folios in debt schemes grew to 4.5 million at the end of March 2012 from 3.9 million at the end of March 2011.



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