The fund house announced that lump-sum subscriptions exceeding ₹25 crore in the SBI Gold ETF will not be accepted as of now.
The move comes as several other asset management companies have also tightened norms for investments in their gold schemes. Earlier this month, Axis Mutual Fund and Aditya Birla Sun Life Mutual Fund announced restrictions on subscriptions in their gold-focused products.
Axis Mutual Fund said lump-sum transactions of ₹25 crore or more in its Gold ETF would be restricted from June 8. It also capped lump-sum purchases and switch-in transactions in its gold fund at ₹10 lakh per PAN per month from June 9.
Similarly, Aditya Birla Sun Life Mutual Fund imposed a ₹25-crore limit on lump-sum investments in its Gold ETF and restricted lump-sum purchases and switch-ins into its gold fund to ₹10 lakh per PAN per month, effective June 9.
In recent days, several other fund houses, including Tata Asset Management, Nippon India Mutual Fund, ICICI Prudential Mutual Fund and HDFC Mutual Fund, have also announced similar curbs on subscriptions in select gold ETFs and gold fund offerings.
While fund houses have generally cited prevailing market and economic conditions for the measures, such restrictions are typically introduced to manage exceptionally large inflows, maintain operational efficiency and address liquidity and portfolio management considerations during periods of strong demand.
Investor interest in gold has remained elevated this year, supported by geopolitical uncertainties, central bank buying and the precious metal’s appeal as a safe-haven asset, prompting fund houses to closely monitor the pace and size of inflows into gold-linked investment products.
