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Tuesday, 7th April 2009 (1482 views)

Indian investors are attracted to gold exchange-traded funds (ETFs) in the current economic climate, it has been claimed.

State Bank of India (SBI) Mutual Fund has become the sixth mutual fund in the country to launch a gold ETF and expects to attract between one and two billion rupees (£13.7-£27.4 million) of investments, Commodity Online reports.

India is the world's largest consumer market for gold and banks and financial institutions are launching new products linked to the precious metal in response to rising investor demand.

RS Srinivas Jain, SBI Mutual senior vice president and chief marketing officer, told the news source: "Gold being the oldest precious commodity, it is an easier and convenient way of investing."

He added that gold is the "defensive hedge" in the current climate and has stood the test of time over 5,000 years.

The SBI ETF fund is a joint venture between the Indian bank and Societe Generale Asset Management in France.

According to the Independent, mints around the world are increasing the numbers of gold coins they produce as savers seek safer investments.

 

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