Invesco Mutual Fund restricts large subscriptions in Gold ETF, caps inflows into Gold FoF

Invesco Mutual Fund has become the latest asset manager to impose temporary restrictions on investments in its gold-focused schemes, joining a growing list of fund houses that have recently moved to curb inflows into gold products amid strong investor demand.

The fund house said lump-sum transactions of ₹25 crore or more in the Invesco India Gold ETF will be restricted as of now.

Additionally, lump-sum purchases and switch-ins into the Invesco India Gold ETF Fund of Fund (FoF) will be subject to a limit of ₹10 lakh per PAN per month from June 16.
The move comes amid a broader trend across the mutual fund industry.

In recent days, several fund houses, including SBI Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Mutual Fund, Tata Mutual Fund, Nippon India Mutual Fund, ICICI Prudential Mutual Fund and HDFC Mutual Fund, have announced similar restrictions on subscriptions into their gold ETFs and gold fund offerings.

SBI Mutual Fund recently restricted lump-sum subscriptions exceeding ₹25 crore in its SBI Gold ETF, while Axis Mutual Fund and Aditya Birla Sun Life Mutual Fund have imposed both ETF subscription limits and caps on investments into their gold fund schemes.

While fund houses have generally cited prevailing market and economic conditions, such measures are typically introduced to manage exceptionally large inflows and address operational and portfolio management requirements during periods of heightened demand.

Investor interest in gold has remained strong this year, supported by geopolitical uncertainties and the metal’s safe-haven appeal, leading to sustained inflows into gold-linked investment products.