Overview
- Between June 5 and June 8, several large asset managers including ICICI Prudential, HDFC, Tata and Nippon India imposed temporary limits on fresh large subscriptions into gold ETFs and funds-of-funds, while retail SIPs and redemptions remain open.
- May data from the Association of Mutual Funds in India showed net outflows of about ₹725 crore from gold ETFs, the first monthly outflow after roughly a year of inflows, as investors booked profits.
- Silver ETFs suffered heavier redemptions, recording roughly ₹2,133 crore of net outflows in May and marking a fourth straight month of withdrawals from that category.
- The government asked citizens to curb gold purchases and raised customs duty on precious metals to 15 percent, steps linked by fund houses and policymakers to a sharp rise in the gold import bill and pressure on foreign-exchange reserves.
- SEBI rules require gold ETFs to hold about 95 percent of assets in physical bullion, which means ETF inflows drive actual gold imports and could prolong restrictions until geopolitical and forex pressures ease.