The restrictions will come into effect from June 8, and will remain applicable until further notice, the fund house said in an addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM).
Under the revised norms, Tata Gold ETF will not accept direct subscription transactions from large investors with a minimum investment size of ₹25 crore. However, this restriction will not apply to authorised participants and market makers, ensuring continuity of liquidity operations in the scheme.
In the case of Tata Gold ETF Fund of Fund, lumpsum purchases and switch-in transactions will be capped at ₹10 lakh per PAN per calendar month at the first holder level.
The fund house clarified that routine investor transactions, including redemptions, switch-outs, Systematic Investment Plans (SIPs) and Systematic Withdrawal Plans (SWPs), will continue to operate normally as per scheme documents.
It further said the restrictions are temporary in nature and may be reviewed based on evolving market conditions. Tata AMC added that it will continue to monitor the situation and modify terms if required.
The move comes amid heightened investor interest in gold-backed investment products following a sharp rally in gold prices, which has led to strong inflows into gold ETFs and related funds across the industry.
In recent days, other fund houses, including ICICI Prudential Mutual Fund, Nippon India Mutual Fund and HDFC Mutual Fund, have also imposed similar temporary restrictions on subscriptions in their gold-linked schemes, largely to manage inflows and operational capacity amid volatile market conditions.
