ICICI Prudential Mutual Fund has imposed restrictions on bulk investments into its Gold ETF, becoming the second major asset manager after HDFC Mutual Fund to curb large inflows into the category.
The fund house will not accept investments of Rs 25 crore or more in its Gold ETF from June 5 after 3 p.m., according to sources. The move comes days after HDFC Mutual Fund announced similar restrictions on fresh inflows into its Gold ETFs, effective June 8.
The curbs come amid a sharp rise in investor interest in gold-backed products, which has driven significant inflows into exchange-traded funds tracking the precious metal.
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Industry sources said several leading asset management companies are considering similar measures to manage large-ticket inflows. Among them is Nippon India Mutual Fund, which manages the country's largest Gold ETF by assets under management and is evaluating restrictions on bulk investments, according to sources.
Nippon India Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund and HDFC Mutual Fund are among the largest players in India's Gold ETF segment by assets under management.
With HDFC Mutual Fund and ICICI Prudential Mutual Fund already implementing restrictions, market participants expect other fund houses to closely monitor inflow trends and liquidity conditions before taking similar steps.
The move highlights growing caution among fund managers as elevated investor demand for gold ETFs coincides with strong gold prices and increased allocations to safe-haven assets.
Earlier HDFC Mutual Fund announced temporary restrictions on large investments into its gold exchange-traded fund (ETF) offerings, citing prevailing economic and market conditions.
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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.
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