BENGALURU: Investments in Indian gold exchange-traded funds fell 22 percent in October after curbs on bulk subscriptions ahead of the festive season, while equity mutual fund investments also slowed, data showed on Wednesday.
Net investments in gold ETFs fell to 34.74 billion rupees (USD370.57 million), according to the Association of Mutual Funds in India. Fund houses suspended fresh subscriptions and bulk purchases just ahead of the festive season, when investor demand typically rises. India has been seeking to limit gold imports to reduce pressure on its currency, which hovered near record lows last month.
October also saw equity mutual fund inflows fall about 14 percent month-on-month to 329.9 billion rupees (USD3.52 billion), as investments in small- and mid-cap funds eased from record highs. Large-cap funds recorded a 20.1 percent increase in inflows to 10.32 billion rupees. Small- and mid-cap inflows fell 37.6percent and 29.1percent, respectively.
A second consecutive monthly rise in investments in large-cap funds suggests that a correction in valuations has renewed retail investor interest, said Nitin Agrawal, CEO of mutual funds at InCred Money.
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