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Inflows in Gold ETFs surge by 74% to Rs 2,189 crore in August. Here is why

4 weeks 1 day ago
The inflows in Gold ETFs in August surged by 74% to Rs 2,189 crore compared to Rs 1,256 crore in July. On a year-on-year basis, inflows rose 36% from Rs 1,611 crore in August 2024.An expert said the healthy net inflows reflect gold’s enduring appeal as both a portfolio diversifier and a tactical hedge amid ongoing global macroeconomic uncertainties.Also Read | Largecap mutual funds see highest jump in monthly inflows by 33% to Rs 2,834 crore in August. Are investors chasing safety?“Gold ETFs witnessed healthy net inflows of Rs 2,190 crore in August 2025, accelerating from Rs 1,256 crore in July and extending the positive streak to four consecutive months. The steady demand reflects gold’s enduring appeal as both a portfolio diversifier and a tactical hedge amid ongoing global macroeconomic uncertainties,” said Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India.Another expert believes this recent surge is driven by the strong performance of gold commodity-based funds.“Gold has seen a surge in market interest, with inflows reaching Rs 2,200 crore in August, making it one of the highest inflow months in recent history. Precious metals continue to attract investor attention, driven by strong recent performance,” said Anand Vardarajan, CBO, Tata Asset Management.For the last four consecutive months, gold ETFs have witnessed positive inflows after seeing outflows in March and April of Rs 77.21 crore and Rs 5.82 crore, respectively.In the current financial year so far, gold ETFs have received total inflows of Rs 5,812 crore, while in the current calendar year, the total stands at Rs 11,466 crore.Also Read | Smallcap mutual funds see 23% drop in monthly inflows to Rs 4,992 crore in Aug. Is investor sentiment shifting?According to Nehal, “Gold ETFs have emerged as a strategic allocation within investor portfolios. Their role in wealth preservation and as a counterbalance to risk assets highlights their growing importance in navigating uncertain markets.”In the current calendar year, gold ETFs have delivered an average return of 41.61%. Of the 18 gold ETFs during this period, Quantum Gold Fund ETF offered the highest return at around 42.34% in 2025 so far, while Tata Gold ETF delivered the lowest at 41.05%.Over the past year, gold ETFs have offered an average return of 49.51%. Among the 17 funds with at least one year of existence, ICICI Prudential Gold ETF topped with a return of around 49.90%, while Tata Gold ETF was at the bottom with 48.80%.“Despite elevated gold prices, investor demand remained steadfast, driven by safe-haven allocations amidst volatile equity markets and persistent geopolitical tensions. Global central bank purchases further bolstered confidence in gold as a reliable store of value,” Nehal said.“For domestic investors, gold continues to act as a shield against currency fluctuations and inflationary pressures, while also offering tactical positioning ahead of pivotal global monetary policy decisions,” Nehal added.Also Read | Gold and silver ETFs offer up to 44% return in 2025. Can the rally sustain? The assets under management (AUM) of Gold ETFs rose 7% from Rs 67,634 crore in July to Rs 72,495 crore in August. On a yearly basis, AUM almost doubled, rising 94% from Rs 37,390 crore in August 2024.According to the latest data from the Association of Mutual Funds in India (AMFI), no new gold ETF was launched in August.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

UK bans record no. of cos from foreign hiring

4 weeks 1 day ago
A record 1,948 companies in the UK lost the right to sponsor foreign workers between July 2024 and June 2025, more than double the 937 licences revoked in the previous year, official figures show. The move is part of a government crackdown on abuse of the immigration system. Data from the Home Ministry indicates that many employers were using work visas to help migrants bypass immigration rules, while also undercutting local workers by underpaying and exploiting migrant staff who depend on their visas to remain in the UK. The highest levels of abuse were found in adult social care, hospitality, retail and construction. The number of licence revocations has risen sharply from 261 in 2021-22 and 247 in 2022-23. Officials expect the figure for the current year to exceed the record again. Alongside licence cancellations, the government is expanding penalties for employers, including financial fines, business closure orders and potential prosecution. The action follows a separate announcement that the UK will restrict visas for countries unwilling to take back migrants with no legal right to remain. Authorities also reported a 51% rise in illegal working arrests over the past year, with 35,000 people removed from the UK — a 13% increase compared to the previous year. “Those who abuse our immigration system must face the strongest possible consequences. We will not hesitate to ban companies from sponsoring workers from overseas where this is being done to undercut British workers and exploit vulnerable staff. My message to unscrupulous employers is clear: these shameful practices will not be tolerated,” Minister for Migration and Citizenship Mike Tapp MP said. Officials said improved data and intelligence sharing has led to more enforcement, moving away from reliance on physical compliance visits. Employers lost licences for offences such as underpaying workers, helping migrants bypass immigration checks, and failing to provide promised jobs.

BSE shares jump 3% to break two-day losing streak amid Sebi board meet buzz

4 weeks 1 day ago
Shares of BSE gained as much as 2.7% to touch an intraday high of Rs 2,223 on Friday, September 12, after reports that long-term F&O contracts are not on the agenda for Sebi’s board meeting scheduled for later today. According to ETNow, there is currently no proposal to end weekly expiry.The stock fell 8% in the two previous sessions, reacting to reports that the regulator is reportedly planning to put out a consultation paper that seeks to end weekly expiries for futures and options (F&O) contracts. According to a report from CNBCTV18, the regulator in the paper plans to shift to monthly expiry with a transition plan, potentially reducing short-term risks and volatility in the F&O market.However, in a meeting on August 21, Sebi Chairman had said that the regulator sees a need to extend the tenure of equity derivatives and will soon issue a consultation paper on longer-duration F&O contracts. He clarified that this is only a thought process at this stage, and any change will be preceded by industry consultation. The objective, he said, is to carefully calibrate changes in the maturity profile and duration of contracts to maintain quality, balance, and support long-term hedging.The regulator has recently rolled out a fresh set of measures to strengthen the market, including moving to a delta-based calculation of open interest as opposed to notional open interest.BSE proves bullet-proof after expiry day swapping with NSEThis measure has an impact on all the large market participants and could potentially make a longer-term impact on volumes and reduce volatility in the market. Sebi has also notified fresh changes to market-wide position limits (MWPL), pre-open and post-market sessions for the F&O segment and also changes in eligibility criteria for derivatives on non-benchmark indices.Also read | Explained: What Infosys' mega Rs 18,000 crore share buyback means for 26 lakh shareholdersAt about 10:34 AM, BSE share were trading at Rs 2,218, higher by 2.56% from the last close on the NSE. BSE shares have been on a bull run, rallying over 65% in the last six months.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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