HDFC, Kotak, ICICI Prudential among 17 mutual fund houses to temporarily restrict subscriptions in gold ETF FoFs

Around 17 mutual fund houses have temporarily restricted fresh subscription in their gold ETF FoFs with effect from October 15 and October 16. These fund houses informed about this to its unitholders through a notice cum addendum.

The fund houses have not specified the reason for these temporary restrictions. However, the fund houses said that during this suspension period, redemption, SWP, Switch out and STP-out will continue.

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HDFC Mutual Fund in its notice cum addendum said that the fund house has suspended fresh subscription/switch-in(s) and fresh systematic registrations. However, the existing systematic transactions registered/received prior to the effective date will continue to be processed under the schemes and there shall be no restrictions on redemptions.

Shriram Mutual Fund said in an investor communication that the restrictions were imposed in line with SEBI instructions conveyed through the Association of Mutual Funds in India (AMFI).

Zerodha Mutual Fund said that fresh/additional lumpsum subscriptions, including switch ins from other schemes, shall not be accepted. Fresh registration of Systematic Investment Plans ( SIP ) shall not be accepted and fresh registration of Systematic Transfer Plans ( STP ), where the scheme is the target scheme, shall not be accepted. And lastly, the step-up facility in existing SIPs shall not be available.

Groww Mutual Fund mentioned that these restrictions are temporary in nature and & shall remain in force until further notice

DSP Mutual Fund in its notice cum addendum said that subscriptions in DSP Gold ETF Fund of Fund through lump sum mode (including switch-in transactions), fresh registrations of Systematic Investment Plans including modification of existing SIP with Top-up facility and/or Systematic Transfer Plans, and fresh registrations for Transfer of Income Distribution cum Capital Withdrawal shall be temporarily restricted with effect from October 16, 2026, until further notice.

Tata Mutual Fund said fresh and additional lump-sum investments, switch-ins, top-ups and new systematic investment plan (SIP) and systematic transfer plan (STP) registrations in Tata Gold ETF FoF would be temporarily restricted from October 16.

“Further, Instalments under existing SIP/STP registrations (registered prior to the effective date) shall continue and be processed at applicable NAV,” the fund house said. It further said that the above revision will be implemented prospectively and shall remain in force till further notice.

The restrictions come ahead of Dussehra and Diwali, when gold demand typically picks up. India relies heavily on gold imports to meet domestic demand, and a surge in imports can widen the trade deficit and put pressure on the rupee.

Also Read | Gold, silver ETFs see sharp rise in inflows in September. Which metal should investors prefer now?

A report by Reuters stated that India’s gold imports fell to $1.8 billion in September, from $2.3 billion in August. However, during the previous year’s festive season, gold and silver ETFs saw higher inflows as investors turned to precious metals amid subdued equity market returns.

In September, the inflows into gold exchange-traded funds (ETFs) surged even as prices of the precious metals corrected during the month. According to data released by the Association of Mutual Funds in India (AMFI), gold ETFs attracted net inflows of Rs 4,450.61 crore in September, up 71.4% from Rs 2,596.70 crore in August.

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