ICICI Prudential Mutual Fund restricts subscription in ICICI Prudential Gold ETF

ICICI Prudential Mutual Fund has restricted subscription in its gold ETF - ICICI Prudential Gold ETF with effect from the close of market hours of June 5. The fund house becomes the second fund house to restrict its subscription in its gold ETF after HDFC Mutual Fund.

The fund house said that subscriptions in Gold ETF directly with ICICI Prudential Asset Management Company Limited (AMC) by eligible investors for an amount exceeding Rs 25 crores shall not be accepted till further notice.

Also Read | HDFC Mutual Fund limits subscription in its gold ETF and FoF. What this means for investors?


In the notice cum addendum, the fund house further said that the restrictions shall not be applicable to Market Makers/Authorized Participants.

All the other provisions of the SID and KIM of the Scheme, except as specifically modified herein above remain unchanged. This Notice-cum-Addendum forms an integral part of the SID and KIM of the Scheme, as amended from time to time.

ICICI Prudential Gold ETF was launched on August 24, 2010 and had an AUM of Rs 26,380 crore as of April 30, 2026. In the last one year, this gold ETF has offered a return of 58.79% and since its inception it has delivered a CAGR of 13.12%.

The fund house has a gold ETF FoF as well but unlike HDFC Mutual Fund it has not restricted the subscription in its gold ETF FoF.

Also Read | Quant Smallcap among 16 equity mutual funds that multiply lumpsum investments by over 2.3x in 5 years

On Thursday, HDFC Mutual Fund restricted lumpsum subscription in its gold ETF and gold ETF FoF.

Post HDFC Mutual Fund announcing restriction on subscriptions, Feroze Azeez, Joint CEO, Anand Rathi Wealth said that HDFC Mutual Fund's decision to temporarily restrict lump-sum inflows into its Gold ETF and Gold ETF Fund of Fund is a responsible step. We hope other AMCs also follow suit because excessive financialisation of gold at elevated prices can add to import demand, put pressure on the current account deficit and eventually contribute to rupee depreciation.

He further said that investors should avoid chasing returns in gold after a strong rally and instead consider partial profit booking. Investors should avoid fresh lump-sum allocations to gold at current levels, review existing holdings and consider booking profits. At this stage, reducing exposure to gold is both prudent portfolio management and a small contribution to India's financial stability

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and Twitter handle.