Tata MF lifts curbs on investment in gold ETFs
Tata MF restricted large lumpsum investment in its Gold ETF and Gold ETF Fund of Funds in June amid a surge in gold imports, which had put pressure on the rupee and the current account deficit
Tata Mutual Fund has recently lifted restrictions on large lumpsum investments in its Gold ETF and Gold ETF Fund of Funds. These measures were initially put in place on June 5, with a cap of ₹25 crore and above for direct subscriptions to the Tata Gold ETF, starting from June 8. Similarly, large investments and switch-ins into the Tata Gold ETF Fund of Funds were limited to ₹10 lakh per PAN per calendar month on June 8.
These restrictions were enacted following Prime Minister Narendra Modi's appeal to consumers to exercise restraint on gold purchases, due to heightened gold imports that impacted the rupee and led to a current account deficit amid the ongoing war in West Asia. As market conditions normalized, Tata MF has decided to resume subscription transactions of ₹25 crore and above for large investors directly with the fund house, according to a statement released on Friday.
Moreover, applications for lumpsum purchases and switch-ins to the Tata Gold ETF Fund of Funds will now be accepted without any investment limit restrictions, the fund house added.
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