17 Mutual Fund Houses Restrict Fresh Investments in Gold ETF FoFs

Key Takeaways

• Around 17 mutual fund houses have temporarily restricted fresh investments in their Gold ETF Fund of Funds, with most curbs taking effect on October 15 or October 16, 2026.
• Fresh lump-sum subscriptions, switch-ins and new systematic registrations are among the transactions affected, although the exact restrictions vary across AMCs.
• Existing registered SIPs and STPs are generally continuing, while redemptions, switch-outs and systematic withdrawals remain available.

Around 17 mutual fund houses have temporarily restricted fresh subscriptions to their Gold Exchange Traded Fund Fund of Funds, or Gold ETF FoFs, in one of the broadest coordinated restrictions seen in the category this year.

The restrictions have taken effect across October 15 and October 16, 2026. HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Tata Mutual Fund, DSP Mutual Fund, Groww Mutual Fund, Zerodha Mutual Fund and several other fund houses are among those that have issued notices or addendums.

The exact scope differs across fund houses. In several cases, fresh and additional lump-sum purchases, switch-ins and new SIP or STP registrations have been temporarily stopped. Some AMCs have also restricted SIP top-ups or modifications to existing systematic instructions.

Investors already running SIPs are, however, largely unaffected. HDFC Mutual Fund said systematic transactions registered before the effective date would continue to be processed, while redemptions remain unrestricted. Tata Mutual Fund similarly said instalments under existing SIP and STP registrations would continue at the applicable NAV.

The suspension does not amount to a closure of the schemes. Investors can generally continue to redeem units, use systematic withdrawal plans and make switch-outs. Direct purchases of Gold ETFs on stock exchanges are also separate from restrictions imposed on the fund-of-funds route.

Most AMCs have not publicly specified the reason for imposing the restrictions. Shriram Mutual Fund, however, said its restrictions were introduced in line with SEBI-related instructions conveyed through the Association of Mutual Funds in India. Other fund houses have described their restrictions as temporary and applicable until further notice.

The measures follow a strong rise in investor flows into gold products. AMFI data cited by Moneycontrol showed Gold ETFs receiving ₹4,450.61 crore in September 2026, up about 71% from ₹2,596.70 crore in August.

The immediate operational change for investors is therefore concentrated on new money entering Gold ETF FoFs, rather than existing investments. Investors should check the latest AMC notice for their individual scheme, as transaction restrictions and effective dates are not identical across fund houses.