Nippon India Mutual Fund has joined peers HDFC Mutual Fund and ICICI Prudential Mutual Fund in restricting large investments into gold-linked schemes, as leading asset managers seek to moderate fresh inflows into gold ETFs amid concerns around rising gold imports and broader economic considerations.
Nippon India Mutual Fund on Friday announced temporary restrictions on large subscriptions into its flagship gold schemes. Direct subscriptions of more than Rs 25 crore in Nippon India ETF Gold BeES will not be accepted, while lump sum investments in Nippon India Gold Savings Fund have been capped at Rs 10 lakh per PAN per month. SIP and STP investments in the fund have been restricted to Rs 50,000 per PAN per day.
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The move comes a day after HDFC Mutual Fund imposed similar restrictions on investments in its Gold ETF and Gold ETF Fund of Fund. HDFC MF said subscriptions of Rs 25 crore and above in its Gold ETF would not be accepted starting June 8, while lump sum investments in its Gold ETF FoF have been capped at Rs 10 lakh per month starting June 5 post 3pm.
ICICI Prudential Mutual Fund has also introduced restrictions on fresh inflows into its gold fund offerings earlier which will be applicable on transactions from June 5 post 3 pm
The latest measures are significant as the three fund houses are among the largest players in India's gold ETF market. According to latest available data, Nippon India Mutual Fund manages gold ETF assets worth nearly Rs 58,000 crore, making it the country's largest gold ETF manager.
ICICI Prudential Mutual Fund oversees gold ETF assets of around Rs 26,000 crore, while HDFC Mutual Fund manages approximately Rs 24,000 crore. SBI Mutual Fund, another major player in the segment, manages gold ETF assets of about Rs 23,000 crore.
Collectively, these four asset managers account for well over Rs 1.3 lakh crore in gold ETF assets, representing a significant share of the industry's total gold ETF corpus.
In its statement, Nippon India Mutual Fund said the restrictions are aimed at discouraging large investments that could potentially lead to fresh creation of ETF units and higher net imports of gold. The fund house noted that gold ETFs account for less than 5% of India's total gold imports but said a prudent approach is warranted given India's dependence on imported gold.
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The AMC highlighted that gold funds witnessed a sharp surge in inflows between September 2025 and January 2026 amid global macroeconomic uncertainties. Industry-wide net inflows into gold ETFs stood at around Rs 58,000 crore during the period. However, flows have moderated substantially in recent months, with April 2026 gold ETF inflows easing to nearly Rs 3,000 crore.
Nippon India Mutual Fund clarified that the restrictions are temporary and will not impact retail investors. Units of Nippon India ETF Gold BeES can continue to be bought and sold on stock exchanges, while investments in the Gold Savings Fund can continue within the prescribed limits. The fund house said it will review the restrictions based on evolving market conditions.
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