Business · Markets · 3 hrs ago
Indian mutual funds pause bulk subscriptions to gold ETFs
Several large Indian mutual funds have paused bulk investments in gold ETFs ahead of the festive season.
Investors can still redeem their holdings, and notices from Kotak Mahindra, UTI and HDFC funds did not give a reason.
People familiar with discussions said the move followed a nudge from India’s market regulator, SEBI.
Gold buying often rises around Dussehra in October and Diwali in early November, when buying gold is considered auspicious.
India imports most of its gold, and strong demand can put pressure on the rupee by increasing imports.
A bullion dealer described the pause as a precaution against a possible October import surge, though gold and silver imports had recently fallen sharply from a year earlier.
Several Indian mutual funds suspended fresh or bulk investments in gold exchange-traded funds and gold fund-of-funds ahead of the festive season.
Investors can continue to redeem existing holdings, and some existing systematic investment plan and transfer plan instalments will continue.
The notices did not state a reason for the restrictions.
Sources attribute the move to regulatory discussions, but differ on whether SEBI or the Reserve Bank of India initiated them.
The restrictions come before a period when gold buying typically rises, after gold imports fell to $1.8 billion in September from $2.3 billion in August.
- Who
- Kotak Mahindra, UTI, HDFC, Tata and ICICI Prudential mutual fund entities were among those reported to have restricted investments.
- What
- Funds halted bulk or fresh investments in gold ETFs or gold fund-of-funds. Redemptions remain available.
- When
- Notices were issued on Thursday, October 15, 2026; Tata Gold ETF FoF restrictions take effect October 16.
- Where
- India.
- Why
- The notices gave no reason. Sources said the move may be a precaution against a festive-season rush into gold funds and imports.
This story does not have two clearly opposing sides.
Several mutual funds issued notices restricting fresh or bulk investments in gold ETFs or gold fund-of-funds.
Restrictions on fresh and additional investments in Tata Gold ETF FoF were due to take effect.
- September gold imports
- $1.8 billion
- August gold imports
- $2.3 billion
- Tata Gold ETF FoF effective date
- October 16, 2026
- Reported fund houses
- Kotak Mahindra, UTI, HDFC, Tata and ICICI Prudential
2 sources
What people are saying
It looks more like a precautionary measure to avoid a surge in imports in October
Further, Instalments under existing SIP/STP registrations (registered prior to the effective date) shall continue and be processed at applicable NAV