Second, in early May, after Prime Minister Narendra Modi urged people to buy less gold, major Indian mutual funds restricted direct subscriptions and switch-ins into their gold ETFs and fund of funds investing in gold ETFs. Lumpsum investments were limited to ₹25 crore for large investors and ₹10 lakh per investor per month for smaller buyers. The aim was to curtail gold investments by high networth and corporate investors without impacting retail investors and Systematic Investment Plans (SIPs), but unfortunately, overall sentiment has taken a hit.
