Higher gold duty likely to boost Gold ETFs, Gold Mutual Funds and GTRs: Kotak Mutual Fund

The recent increase in gold import duty to 15 per cent is likely to strengthen the case for financial gold products such as Gold ETFs, Gold Mutual Funds and Gold Trading Receipts (GTRs), according to Satish Dondapati, ETF Fund Manager at Kotak Mutual Fund.

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Dondapati said the duty hike has already pushed up domestic gold prices, resulting in higher net asset values (NAVs) for Gold ETFs and Gold Funds. He added that the move aligns with the government's objective of moderating physical gold consumption and encouraging investors to shift towards financial forms of gold ownership.