Several gold schemes have resumed lump sum subscriptions in August 2026 amid gold prices reaching $4,530 per ounce and heading for a third consecutive weekly gain of over 3%. According to reports from The Economic Times, Tata Mutual Fund announced on August 21, 2026, the decision to resume subscription to units in Tata Gold Exchange Traded Fund (Tata Gold ETF) and Tata Gold ETF Fund of Fund (Tata Gold ETF FOF). The fund house stated that in view of the normalization of market conditions, subscription transactions by large investors directly with Tata Mutual Fund (investing ₹25 crore & above) in Tata Gold ETF will now be accepted. Additionally, applications for lump sum purchases and switch-ins to the Tata Gold ETF FOF will be accepted without any investment limit restrictions. The revised norms and their prospective implementation were officially announced through an addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the respective schemes, with all other terms and conditions remaining unchanged. UTI Mutual Fund has now joined the trend, announcing the resumption of lump sum subscriptions in its two schemes effective August 25, 2026. As per UTI Mutual Fund, subscription transactions by large investors (investing more than ₹25 crore) shall be accepted in UTI Gold ETF, while UTI Gold ETF FoF will accept lump sum purchases and switch-ins without any restrictions.
Tata Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Mutual Fund and Axis Mutual Fund have removed restrictions on direct gold ETF investments as supply and macroeconomic concerns ease. As per Business Standard, the curbs were only on fresh ETF unit creation through direct investment, while investors could continue to invest any amount through exchanges. Invesco Mutual Fund will lift its restrictions from August 24, 2026. According to MF executives, gold supply constraints were also a reason for the earlier restrictions, with the chief executive officer of one fund house stating that "As responsible institutions, we decided to place curbs as gold inflows were adding to some of the pressure on the current account and the rupee. At the same time, there were supply constraints in the market. Both these factors have eased now, and flows have also tapered, allowing us to resume subscriptions."
The current gold rally has been supported by US Treasury's unexpected increase in buybacks of long-dated government debt, which sent US Treasury yields and the dollar lower. This policy move has underscored concerns over the US government's rising debt burden, one of the themes that has supported gold's multi-year rally as investors sought alternative safe havens. However, the rally could face pressure from a rebound in energy prices, which could keep inflation risks and rate-hike expectations elevated. Oil is headed for a sharp weekly gain after US President Donald Trump's threat to further pressure Iran dimmed prospects of a near-term deal to reopen the Strait of Hormuz. The rally has been particularly strong, with bullion prices surging nearly 12% over the past month.
Gold ETFs, which were among the highest-grossing mutual fund categories until January 2026, have seen a decline in investor interest amid cooling prices. According to Business Standard, Gold ETFs attracted net inflows of ₹1,560 crore in July 2026, reflecting the current market dynamics. Of the schemes, Tata Gold Fund and Gold ETF FOF are the youngest schemes with a track record of less than three years. Tata Gold ETF had an AUM of ₹5,715 crore as of July 31, 2026, while Tata Gold ETF FOF had an AUM of ₹1,389 crore during the same period.
