Tata Mutual Fund announces temporary restrictions on subscriptions in its gold ETF and FoF

Tata Mutual Fund has announced temporary restrictions on subscription transactions for its Tata Gold Exchange Traded Fund (ETF) and Tata Gold ETF Fund of Fund (FoF) with effect from June 8. The fund house cited prevailing broader economic and market conditions as the primary reason behind this decision.

The restrictions will apply prospectively and remain in force until further notice. In Tata Gold Exchange Traded Fund: Subscription transactions by large investors investing directly with Tata Mutual Fund—specifically transactions with a minimum investment amount of Rs 25 crore—will not be accepted from the effective date.

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However, this restriction will not apply to Market Makers or Authorised Participants, ensuring liquidity channels remain uninterrupted. In the Tata Gold ETF Fund of Fund (FoF), lumpsum purchases and switch-in transactions into the FoF scheme will be capped at Rs 10 lakh per PAN per calendar month (applied at the first holder level).

These limitations are purely temporary in nature. We will continue to monitor and review evolving conditions and may accordingly modify the terms in the future, the fund house said.

To ensure minimal disruption to retail investors, the fund house confirmed that routine transactions such as Redemptions, Switch-outs, Systematic Investment Plans (SIPs) and Systematic Withdrawal Plans (SWP) will continue to be permitted and processed in accordance with the terms outlined in the Scheme Information Document.

The regulatory changes and prospective implementation details were officially announced through an addendum issued to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the respective schemes. All other terms, conditions, and the Risk-o-meters of both schemes remain unchanged.

By announcing the restrictions in its gold ETF and FoF, Tata Mutual Fund became the seventh fund house to temporarily restrict subscriptions.

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The other fund houses to restrict subscription in their respective gold ETF and gold ETF FoF are Aditya Birla Sun Life Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Nippon India Mutual Fund and Axis Mutual Fund.

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