In February, the same trend has been seen despite the different moves in two magnificent investment options. Last month, investors have worked to withdraw money from Gold ETF and SIP, while gold prices are in the record of equity decline.
In fact, in the last few months, the steep decline in the stock market and inflation has made a profound impact on the common man’s pocket. On the one hand, while the fluctuations in the stock market have disturbed investors, on the other hand, despite the record hike in gold prices, investment in Gold ETF has decreased.
SIP cancellation ratio huge increase
In this difficult situation, people are in a dilemma about their money and do not understand what they should do next? According to the data, investment in gold ETF declined by 47 percent to Rs 1,979 crore in February. Similarly, there has been a huge increase in Systematic Investment Plan i.e. SIP cancellation ratio and people are withdrawing money from mutual funds.
If we talk about gold, then recently gold prices reached their highest level. The price of 10 grams of gold reached 86 thousand 875 rupees. Despite this, the investment in Gold ETF in February decreased from Rs 3751 crore to Rs 1979 crore.
Due to this, AUM of Gold ETF has been able to reach Rs 55 thousand 677 crore just 7 percent. Experts say that this happened because the investors made a profit by taking advantage of the high gold prices and withdrawn their money.
Nifty-senses fall by 14 percent
On the other hand, the steady decline in the stock market has also affected the SIP and the SIP cancellation ratio has accelerated, that is, people are withdrawing money from their mutual funds, because the trust of investors has been shaken after the decline of 13 to 14 percent in Sensex and Nifty.
Foreign investors also sold Rs 81 thousand 903 crore in January, and Rs 30 thousand 588 crore in February. Market experts say that this decline has come due to weak corporate earnings and high valuation.
In such a situation, the question in front of investors is what to do now? Experts recommend that if the market falls, do not panic and continue it instead of closing the SIP as it can give this benefit in the long term. Investing gold and silver in unstable stock market can also be a good option. Meanwhile, silver ETFs are also drawing people’s attention as its prices are also increasing.
It is estimated that the situation in the stock market will not improve until corporate earnings and economy boom. In the current situation, investors are being advised not to pay attention to big and reliable stocks and do not take decisions in a hurry.
