The restrictions also cover selected combined gold-and-silver schemes. Existing systematic investments generally continue, while redemptions remain available.
Several Indian mutual fund houses have suspended fresh investments in gold FoFs, including selected schemes that invest in both gold and silver, ahead of the festive season.
The restrictions took effect around 15–16 October 2026, with the precise cut-off depending on the scheme. Fund houses announcing curbs include HDFC, ICICI Prudential, Kotak, Tata, DSP and UTI.
For investors, the immediate impact is on adding new money to the affected schemes. Existing holdings remain invested, and previously registered systematic contributions generally continue under the conditions specified by each fund house.
The announcements concern particular fund-of-funds products. They should not be interpreted as a blanket suspension of every gold or silver investment option.
Which Gold FoFs Are Affected?
HDFC Mutual Fund’s official addendum names two schemes:
- HDFC Gold ETF Fund of Fund
- HDFC Gold Silver Passive FOF
Its restriction applies to fresh subscriptions, switch-ins and new systematic registrations received after 3 pm on 15 October 2026. Existing systematic transactions registered or received before the effective date continue, and the notice places no restriction on redemptions.
Other fund houses have announced similar measures. According to published reports on their notices, Tata’s restrictions cover fresh and additional lump-sum investments, switch-ins, top-ups and new SIP and STP registrations in its Gold ETF FoF from 16 October.
DSP has also restricted fresh subscriptions and specified systematic-plan registrations in its Gold ETF FoF. The details differ between notices, particularly for top-ups and changes to existing plans.
Does the Suspension Include Silver Funds?
The distinction is between a silver-only fund and a combined gold-and-silver fund.
HDFC’s notice, for example, names its combined Gold Silver Passive FOF alongside its Gold ETF Fund of Fund. It does not name the HDFC Silver ETF Fund of Fund.
A combined scheme has exposure to both precious metals through its underlying investments. Its inclusion in the restrictions does not establish that every standalone silver FoF has stopped accepting money.
Investors therefore need to check the full scheme name when reading a suspension notice.
What Is a Gold Fund of Funds?
A gold fund of funds is a mutual fund scheme that invests in units of a gold exchange-traded fund, or ETF.
The ETF provides exposure to gold, while the FoF gives investors access through a conventional mutual fund investment route. A demat account is generally not required for the FoF.
This structure is useful for understanding the announcement. An ETF and a FoF investing in that ETF are separate products, with different transaction arrangements.
A combined gold-and-silver FoF similarly holds investments linked to both metals, according to its investment mandate.
Which Transactions Have Been Paused?
The following summarises the main restrictions reported across affected schemes. Each fund’s addendum determines the exact treatment.
| Transaction | General position under the announced restrictions |
|---|---|
| Fresh or additional lump-sum investment | Temporarily restricted |
| Switch-in from another scheme | Temporarily restricted |
| New SIP registration | Restricted in affected schemes |
| New STP registration into the scheme | Restricted where specified |
| Existing SIP or STP instalment | Generally continues if registered before the cut-off |
| SIP top-up or step-up | Restricted by some fund houses |
| Redemption or switch-out | Continues under the scheme’s applicable terms |
A SIP, or systematic investment plan, makes recurring investments. An STP, or systematic transfer plan, moves money periodically between schemes.
Keeping an existing SIP running does not necessarily permit an investor to increase its amount. Some notices specifically restrict the top-up facility.
Why Are Fund Houses Restricting Fresh Investments?
The announcements arrive before Dussehra, Diwali and the wedding season, when demand for precious metals typically increases.
Reuters reported that the action followed discussions with SEBI, citing people familiar with the matter. Several notices did not state a detailed reason. Industry sources quoted by The New Indian Express linked the move to concerns about additional imports and pressure on India’s external finances.
The economic concern is that stronger demand for imported precious metals can increase foreign-currency requirements. However, that explanation comes from reported industry assessments; it should not be presented as a detailed policy rationale published in every scheme notice.
Gold ETF Inflows Had Already Increased
The restrictions follow a rise in investment flows into gold ETFs.
According to AMFI data reported by Moneycontrol, gold ETFs received ₹4,450.61 crore in net inflows during September 2026, compared with ₹2,596.70 crore in August—an increase of approximately 71%.
Silver ETFs attracted ₹1,974.32 crore in September, up from ₹1,270.63 crore in August.
These figures measure flows into the ETF categories, rather than the amount affected by the FoF restrictions. They provide context for investor interest in precious metals but do not predict future prices.
What Happens to Existing Investments?
The subscription pause does not cancel units already held by investors.
Affected funds continue to manage their portfolios, and existing units remain exposed to movements in the underlying investments. Their net asset value, or NAV, can rise or fall while fresh subscriptions are restricted.
The notices also preserve routes for withdrawals. HDFC explicitly allows redemptions, while Tata’s reported conditions permit redemptions, switch-outs and existing systematic withdrawal plans.
An investor checking a recurring transaction should distinguish between an existing instalment, a new registration and a requested increase. These may receive different treatment under the same notice.
Can Investors Still Buy Gold ETFs?
Gold ETFs continue to trade on stock exchanges. Retail purchases through a demat and trading account are distinct from subscribing to a FoF.
That route has different costs and pricing. ETF units trade at market prices, which can differ from the value of their underlying holdings. A FoF transaction uses the applicable NAV under mutual fund processing rules.
FoFs also carry their own recurring expenses alongside those of the underlying ETFs, subject to regulatory limits. Exchange purchases can involve brokerage and account-related charges.
Availability through an exchange therefore does not make the two routes identical.
When Will Gold FoFs Reopen?
The reviewed announcements do not provide a common reopening date. HDFC’s October restriction remains in place until further notice.
There is precedent for restrictions being revised. HDFC’s earlier August addendum restored unrestricted lump-sum purchases and switch-ins in its Gold ETF Fund of Fund from 14 August 2026, following restrictions introduced in June.
That earlier reopening does not establish the duration of the current pause. A fresh announcement from the relevant fund house will determine when subscriptions resume.
For more insights navigate: PressPire | Stories That Shape the Future
Read previous article here : caller-name-display-cnap-india-november-2026/
Follow PressPire on Facebook | Instagram | LinkedIn | YouTube
PressPire | Stories That Shape the Future
