HDFC Gold ETF Remains Available On Exchanges Despite New Subscription Curbs

Units of the HDFC Gold ETF will continue to be available for trading on stock exchanges even after HDFC Mutual Fund introduced temporary investment restrictions on certain categories of investors.

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In an addendum dated June 4, 2026, HDFC Mutual Fund said it will not accept direct subscription requests in the HDFC Gold ETF from large investors putting in ₹25 crore or more. The restriction will take effect from June 8 and remain in force until further notice.

The move affects only direct subscriptions made with the fund house and does not impact trading activity on stock exchanges.

ETF Purchases Through Exchanges Unaffected

Retail investors can continue to buy or sell HDFC Gold ETF units through the National Stock Exchange and the Bombay Stock Exchange using their demat and trading accounts.

Exchange-traded funds are listed securities and can be purchased in the secondary market just like shares. As a result, the latest restrictions do not prevent investors from gaining exposure to gold through the ETF route.
The fund house has clarified that the curbs apply only to direct subscriptions from large investors and do not affect exchange-based transactions.

New Limits For Gold ETF Fund Of Fund

HDFC Mutual Fund has also imposed restrictions on investments in the HDFC Gold ETF Fund of Fund (FoF).
For transactions received after 3:00 PM on June 5, 2026, lump-sum purchases and switch-ins will be accepted only up to ₹10 lakh per PAN per calendar month at the first-holder level.

A Fund of Fund structure invests in underlying mutual fund schemes rather than directly holding securities or assets. Investors using this route will therefore need to comply with the newly introduced monthly investment cap.

Existing Holdings And Redemptions Continue

The fund house has not imposed any restrictions on redemptions or existing investments. Investors can continue holding their units or redeeming them in line with the scheme’s existing provisions.
According to the addendum, all other terms and conditions of the schemes remain unchanged.

Gold ETF Flows Reverse In May

The announcement comes after a shift in investor activity within gold-linked investment products. India’s gold ETFs posted net outflows of $61 million in May, the first monthly outflow since May 2025. That came after net inflows of $297.2 million in April.

The reverse came against the backdrop of volatility in gold prices and profit booking in wake of changes in import duties impacting the domestic bullion prices.

Gold investment product inflows have slowed, but investor interest in gold is still strong. HDFC Mutual Fund’s recent action seems to be an attempt to manage inflows into its gold schemes in the current market scenario.
However, the practical impact is limited for retail investors as HDFC Gold ETF units continue to trade normally on stock exchanges.