Returns from gold-based exchange traded funds (ETFs) moved to positive territory after giving negative returns in January. Gold ETFs saw a net inflow of Rs 112 crore in the month, while their assets rose by 11 per cent compared with January.

All the six gold ETFs — Gold BeES, UTI, Reliance, SBI, Kotak and Quantum — gave average return of 2.46 per cent against negative returns of 2.56 per cent in January. In December too, the returns were negative at 7.27 per cent.

In February, Reliance gold ETF gave 2.84 per cent returns, Gold BeES 2.67 per cent and UTI Goldshare 2.54 per cent. SBI gold ETF made 2.38 per cent returns, Quantum 2.34 per cent and Kotak 2.03 per cent.

As per the data available with Association of Mutual Funds of India (Amfi), the net inflow of gold ETFs marginally rose to Rs 118 crore in February from Rs 112 crore in January. The yearly period till February-end saw a net inflow of Rs 759 crore against Rs 107 crore during the previous yearly period.

In the month of February, Gold ETFs raised their assets under management to Rs 1,583 crore from Rs 1,425 crore in January, according to Amfi. In the month of January, however, the AUM has been rising despite the negative returns.

Despite the positive returns, the investor interest was not visible in the turnover. The monthly turnover of the six gold ETFs stood at Rs 181 crore in February, whereas the gold ETFs clocked a turnover of Rs 294 crore and Rs 337 crore in January and December, respectively.

According to Alex Mathews, head of commodities of Geojit BNP Paribas, the month saw “subdued interest” from the investor community. “The prices moved between $1,043 per oz and $1,130 per oz in February. Apart from the global cues like the movements in the dollar index, uncertainties in the Indian currency ahead of the Union budget too subdued interest,” he said.