Gold ETF investments hit pause (File Photo)
\n\nSeveral major mutual fund companies in India have temporarily stopped accepting bulk subscriptions to gold exchange-traded funds (ETFs), a move that comes just as demand for the precious metal is expected to pick up ahead of the festive season. According to a Reuters report, fund houses, including HDFC Mutual Fund, Kotak Mahindra Mutual Fund and UTI Mutual Fund, issued public notices on Thursday, October 15, announcing the suspension. The notices did not specify the reasons behind the decision.
\n\nThe development could affect investors planning to make fresh lump-sum investments in gold ETFs during the upcoming festive period. However, existing investors can continue to redeem their holdings, while ongoing systematic investment plans (SIPs) will continue to be processed at the prevailing net asset value (NAV), according to the notices.
\n\nThe move comes amid concerns over India's gold import requirements, pressure on the rupee and the prospect of higher seasonal demand during Dussehra and Diwali.
\n\nThe temporary suspension applies to fresh bulk subscriptions to gold ETFs by the fund houses that issued the notices. Investors looking to put additional money into these schemes may therefore find their options restricted for the time being.
\n\nHowever, the…
Original source: https://www.timesnownews.com/business-economy
