Gold ETFs catching investor fancy
18.05.12
In April 2011, while AUMs of other schemes such as equity, income and balance funds have witnessed decline during the same period, according to data by the Association of Mutual Funds of India.
Gold ETFs are open-ended mutual fund schemes that invest money collected from investors in gold. These are passively managed funds and are designed to provide returns that would closely track the returns from physical gold in the spot market.

"Increased interest of investors is because of better returns offered by these schemes compared to other investment options," said Arindam Ghosh, vice-president, head, retail sales, JPMorgan Asset Management India.
"In India where investment in gold is done by buying jewellery, the increase in gold AUMs also shows the emergence of gold as an asset class," he said.
Because of the volatility in stock market due to the sovereign debt crisis in the euro zone and slowdown concerns, gold has emerged as one of the best options for investors to put their money.
Source: Hindustan Times