Gold ETFs have surged with a record Rs 1,028 crore inflow in August, marking a 16-month high, attributed to rising US interest rates slowing down growth there. It’s crucial to perceive gold as portfolio insurance, not just an investment, and limit its exposure to 5-10% within a diversified portfolio. Investor accounts in Gold ETFs have risen, reflecting heightened interest in gold-related funds. Assets under management have grown over 4% to Rs 24,318 crore in August. For long-term gold allocation, Sovereign Gold Bonds (SGBs) are a compelling option, offering added interest and tax benefits. Assess prices and liquidity when choosing between new and existing SGBs.
Analyzing the Surge in Gold ETFs and the Case for Sovereign Gold Bonds
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