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Mutual Funds Suspend Bulk Subscriptions to Gold ETFs Ahead of Festive Season
The move follows a regulator nudge as gold imports fell to $1.8 billion in September, easing pressure before festive demand rises.
- On Thursday, several large Indian mutual funds suspended bulk subscriptions to gold ETFs following a nudge from the Securities and Exchange Board of India.
- Two bullion industry officials confirmed the halt followed discussions with the market regulator, aiming to prevent a potential surge in gold imports during the upcoming festive season.
- Gold imports fell to $1.8 billion from $2.3 billion previously, while Indians traditionally purchase gold for upcoming festivals, including Dussehra and Diwali.
- A dealer at a private bank described the move as "a precautionary measure to avoid a surge in imports in Oct," targeting potential trade deficit impacts.
- The Indian rupee has faced pressure this year from rising oil prices and heavy foreign equity selling, prompting officials to manage import-related trade deficits while balancing festive demand.
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Indian mutual funds stop bulk subscriptions to gold ETFs ...
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Mutual fund houses halt fresh gold ETF FoF investments ahead of festive season - tennews.in: National News Portal
New Delhi, Oct 16 (IANS) Several mutual fund houses have temporarily suspended fresh investments into gold exchange-traded fund fund-of-funds (Gold ETF FoFs), effective from Friday, as per multiple reports. The restrictions cover fresh lump-sum investments, new systematic investment plan (SIP) registrations and additional contributions through existing SIPs, including top-up facilities. Some fund houses have also […] The post Mutual fund houses …
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Leaning Left0Leaning Right3Center2Last UpdatedBias Distribution60% Right
Bias Distribution
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60% Right
C 40%
R 60%
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