With gold prices soaring and investor interest spiking,Axis Mutual Fund and Aditya Birla Sun Life Mutual Fund are clamping down on their gold schemes . Starting June 8,Axis will cap lump-sum transactions at ₹25 crore in its Axis Gold ETF. From June 9, purchases and switch-ins for Axis Gold Fund won't exceed ₹10 lakh per PAN monthly.
Aditya Birla Sun Life follows suit June 9. No lump-sum transactions of ₹25 crore or more in its Gold ETF. Purchases and switch-ins into Aditya Birla Sun Life Gold Fund also capped at ₹10 lakh per PAN monthly.
This trend among asset managers comes as demand for gold investment products surges. Gold ETFs and mutual funds have seen big inflows recently . Firms like Tata Mutual Fund,Nippon India Mutual Fund,ICICI Prudential Mutual Fund, and HDFC Mutual Fund have also set similar limits.
Funds impose these restrictions to manage large inflows and operational headaches during high demand. Rising gold prices make gold-linked investments tempting for those seeking stability amid economic uncertainty.
Restrictions hit new subscriptions and switch-ins,but existing investors can still redeem units per their scheme terms. Appetite for gold investments remains strong as market volatility continues…
