- HDFC Mutual Fund restricts large investments in its gold ETFs from June 8, 2026
- Transactions of Rs 25 crore or more in HDFC Gold ETF and FoF will be disallowed
- FoF purchases and switch-ins capped at Rs 10 lakh per investor per month during restriction
HDFC Mutual Fund has announced temporary restrictions on large investments into its gold exchange-traded fund (ETF) offerings, citing prevailing economic and market conditions.
According to a statement issued by the asset manager on email, bulk subscriptions into the HDFC Gold ETF and HDFC Gold ETF Fund of Fund (FoF) will be restricted with effect from June 8, 2026.
Under the revised framework, transactions of Rs 25 crore (Rs 250 million) or more in the two schemes will not be accepted. The move is aimed at managing inflows into the gold-linked investment products amid heightened interest in the asset class.
For investors in the HDFC Gold ETF Fund of Fund, the restrictions are even tighter. Lump-sum purchases and switch-in transactions will be processed only up to Rs 10 lakh per investor per month. Investments exceeding this threshold will not be accepted during the period of restriction.
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The fund house said the decision has been taken "in light of the broader economic and market conditions," though it did not specify a timeline for the restrictions to be lifted.
The move comes at a time when gold prices have remained elevated amid geopolitical tensions, global economic uncertainty, and investor demand for safe-haven assets. Rising allocations to gold funds and ETFs have prompted several asset managers globally to closely monitor flows into precious metal-linked products.
The latest development follows another significant decision by HDFC Mutual Fund earlier this year. In May, the fund house withdrew its proposed gold-silver passive fund of fund product shortly after Prime Minister Narendra Modi urged citizens to avoid excessive gold purchases in order to help preserve India's foreign exchange reserves.
Gold remains one of the most popular investment avenues among Indian households, both in physical and financial forms. Gold ETFs and fund of funds have gained traction in recent years as investors seek exposure to the precious metal without the challenges associated with physical storage and purity concerns.
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