The restrictions, effective June 8, apply to Nippon India ETF Gold BeES and Nippon India Gold Savings Fund.
For Nippon India ETF Gold BeES, the fund house has discontinued direct fresh subscriptions with the asset management company (AMC) by large investors. The scheme currently allows authorised participants, market makers and large investors to create units directly with the AMC, with large investors required to transact above ₹25 crore.
Under the revised arrangement, direct subscriptions by large investors will no longer be accepted, while authorised participants and market makers will continue to have access to the facility.
In the case of Nippon India Gold Savings Fund, fresh and additional subscriptions, switch-ins and fresh registrations through lump-sum investments will be capped at ₹10 lakh per PAN per month. Investments through Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs) and other similar products will continue, subject to a limit of ₹50,000 per PAN per day.
The move follows similar restrictions announced by other fund houses in recent days.
ICICI Prudential Asset Management Company last week said it would temporarily stop accepting direct subscriptions exceeding ₹25 crore in its Gold ETF from eligible investors, while continuing to allow transactions by market makers and authorised participants.
HDFC Mutual Fund had also imposed temporary limits on lump-sum investments in its gold exchange-traded fund offerings.
The restrictions come amid sustained investor interest in gold-backed investment products after a sharp rally in the precious metal. Rising gold prices have contributed to strong inflows into gold ETFs and growth in assets under management across gold-linked schemes.
Nippon India Mutual Fund did not provide any further details on the duration of the restrictions and said the measures were being introduced in view of prevailing market conditions.
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