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Informist, Wednesday, Jun. 10, 2026

 

--AMFI: Record gold ETF outflows May on profit booking post import duty hike 

 

MUMBAI – After continuous inflows into gold exchange-traded funds for 12 months, gold ETFs recorded all-time-high net outflows in May as investors took profits. "People must have probably booked the profits as well, given the fact that gold prices have slightly moved up on account of the import duties," Venkat Chalasani, chief executive at the Association of Mutual Funds in India, told Informist during a conference call.

 

According to data released by the association Wednesday, gold ETFs recorded net outflows of INR 7.25 billion in May compared to net inflows of INR 30.40 billion in April. However, the assets under management of gold ETFs rose nearly 4% on month and almost three times on year to INR 1.85 trillion as of May 31.

 

The number of folios in gold ETFs fell to 123 million as of May 31 from nearly 125 million a month ago. These funds recorded redemptions or repurchases of INR 33.30 billion. The funds mobilised in May were INR 26.05 billion. In April, gold ETFs saw redemptions or repurchases of INR 20.54 billion and mobilisation of nearly INR 50.94 billion.

 

At least seven mutual funds, including Axis, ICICI Prudential, HDFC, Aditya Birla Sun Life, and Kotak have decided to temporarily suspend lump-sum subscriptions into gold ETFs. These decisions come at a time when rising energy prices due to the war in West Asia have stoked concern about higher inflation and the government has hiked import duty on gold.

 

On May 12, the government raised import duty on gold and silver to 15% from 6?rlier. The move came soon after Prime Minister Narendra Modi urged citizens on May 10 to reduce fuel consumption and avoid non-essential purchases such as gold to reduce India's import bill and conserve foreign exchange.

 

After the import duty hike on May 12, prices of gold futures contracts rose nearly 6% from the previous close to INR 162,186 per 10 gram on May 13. Gold prices in May averaged INR 156,126.80 per 10 grams, higher than April's average of INR 151,854 per 10 grams.

 

At 1329 IST, the most active August gold contract on the Multi Commodity Exchange was at INR 149,879, down nearly 2% from Tuesday's close.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by J. Navya Sruthi and Janwee Prajapati

Edited by Rajeev Pai

 

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