India’s mutual fund industry has curbed new subscriptions to selected gold fund-of-funds, leaving investors to use listed exchange-traded funds or existing plans where scheme rules permit.
HDFC Mutual Fund’s Oct. 15 notice covers HDFC Gold ETF Fund of Fund and HDFC Gold Silver Passive FOF. The schemes restricted fresh subscriptions, switch-ins and new systematic registrations received after 3 p.m. IST (5:30 a.m. ET; 09:30 UTC) on Oct. 15. Investors with systematic transactions registered earlier can continue them, while redemptions remain unrestricted. HDFC said the restrictions would last “until further notice.”
The immediate effect is on investors seeking new exposure through the affected FoFs. Reports by The Economic Times and Business Standard put the number of fund houses imposing restrictions at about 17, with measures starting Oct. 15 or 16. The terms vary by fund house and scheme.
FoFs hold units in ETFs and let investors subscribe through a mutual fund. Business Standard and Moneycontrol reported that listed Gold ETFs remained available for purchase on exchanges, a route that requires a demat account.
The Association of Mutual Funds in India (AMFI) recorded net inflows of ₹4,450.61 crore (₹44.51 billion) into Gold ETFs in September 2026, compared with ₹2,596.70 crore in August 2026.
The fund notices do not give a shared reason for the curbs. Reuters reported, citing an unnamed mutual fund executive and two bullion-industry officials, that the Securities and Exchange Board of India (SEBI) had nudged the industry; it separately described rupee and import pressures as context. Reuters also reported that India’s gold imports were valued at $1.8 billion in September, down from $2.3 billion in August, and that SEBI had not responded to its request for comment. A bullion dealer at a private bank told Reuters the restrictions appeared precautionary, aimed at limiting a possible October import surge.
Moneycontrol reported that some fund houses capped large investments in gold ETFs and FoFs in June 2026, then eased those limits in August 2026. HDFC has announced no reopening date, and restrictions differ across schemes.
