HDFC Mutual Fund temporarily restricts fresh investments in its Gold ETF and Gold FoF. Large direct investments (Rs 25 Cr+) and FoF lump sums (Rs 10 L/month) are limited.
With this, HDFC Mutual Fund has become the first mutual fund house to restrict such subscriptions.
In an addendum issued on Thursday, the fund house said subscription transactions by large investors directly into HDFC Gold ETF will not be accepted from June 8.
The restriction will apply to investors making investments of at least Rs 25 crore directly with the fund house.
For HDFC Gold ETF Fund of Fund, lump-sum purchases and switch-ins will be processed only up to Rs 10 lakh per PAN per calendar month at the first-holder level.
The limit for the FoF will be applicable to transactions received after the cut-off time of 3 pm on June 5, the fund house said.
HDFC Mutual Fund said the measures have been taken “in light of the broader economic and market conditions”, and will remain in force until further notice.
The addendum forms an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the schemes, as amended from time to time.
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