MUMBAI — Tata Mutual Fund has officially lifted the curbs on large lumpsum investments in its Gold ETF and Gold ETF Fund of Funds (FoF), according to a statement released by the fund house on Friday.
The restrictions were originally implemented earlier this year on June 8, following a directive issued on June 5. At that time, Tata Mutual Fund restricted subscription transactions of ₹25 crore and above in the Tata Gold ETF directly with the fund house. Additionally, lumpsum purchases and switch-ins into the Tata Gold ETF FoF were capped at ₹10 lakh per PAN per calendar month.
These temporary measures were enacted after Prime Minister Narendra Modi appealed to consumers to moderate gold purchases. The policy response came as a sharp surge in gold imports exerted downward pressure on the Indian rupee and widened the current account deficit, a situation compounded by the ongoing conflict in West Asia.
With market conditions now stabilizing, the fund house has decided to reverse the restrictions. Tata Mutual Fund announced that it will resume subscription transactions of ₹25 crore and above by large investors directly in the Tata Gold ETF.
Furthermore, applications for lumpsum purchases and switch-ins to the Tata Gold ETF FoF will now be accepted without any previous investment limit restrictions, according to the official statement.
"The decision by Tata Mutual Fund to lift investment limits on its gold schemes reflects the stabilization of macroeconomic and market conditions following a period of heightened geopolitical uncertainty. Temporary curbs of this nature are often necessary tools used by financial institutions to manage liquidity and align with broader macroeconomic stability goals during currency and import pressures. As market normalizes, the removal of these caps restores normal investment channels for institutional and retail participants looking at asset allocation in gold." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
