Nippon India Mutual Fund Imposes Investment Caps on Gold BeES ETF and Gold Savings Fund
Nippon India Mutual Fund Imposes Temporary Restrictions on Gold-Focused Schemes
Nippon India Mutual Fund has announced temporary restrictions on fresh investments in its gold-focused schemes, Nippon India ETF Gold BeES and Nippon India Gold Savings Fund, citing prevailing market conditions. The restrictions will take effect from June 8, 2026, and remain in force until further notice.
According to an addendum issued by the fund house on Friday, direct fresh subscriptions to Nippon India ETF Gold BeES through the asset management company (AMC) will no longer be available to large investors. Previously, large investors could subscribe directly with the AMC for transactions exceeding Rs 25 crore. However, the restriction will not apply to authorized participants and market makers, who will continue to have access to the facility.
For Nippon India Gold Savings Fund, the fund house has imposed a cap on fresh investments, additional purchases, and switch-in transactions through lump-sum mode at Rs 10 lakh per PAN per month. Investments through Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), and similar products will continue, subject to a limit of Rs 50,000 per PAN per day.
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| Scheme | Limit per PAN per Month | Limit per PAN per Day |
|---|---|---|
| Nippon India ETF Gold BeES | N/A | N/A |
| Nippon India Gold Savings Fund | Rs 10 lakh | Rs 50,000 |
The mutual fund clarified that the measures are temporary and will not affect redemption requests, switch-outs, or ongoing SIP and STP registrations. Trading of Nippon India ETF Gold BeES on stock exchanges will also continue as usual during market hours. Transactions received and time-stamped before 3:00 p.m. on June 5, 2026, will be processed at the applicable net asset value (NAV), the fund house said.
Nippon India Mutual Fund further noted that the investment restrictions will not apply to investments mandated under regulatory requirements, including mandatory contributions by asset management companies and investments made under designated employee alignment regulations.
Investor Takeaway
Investors should be cautious when investing in gold-focused schemes due to temporary restrictions on fresh investments.
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