17 Mutual Fund Houses Restrict Gold ETF FoFs Amid Seasonal Demand Surge

Written by: Team Angel OneUpdated on: 16 Oct 2026, 6:29 pm IST

17 mutual fund houses pause new subscriptions in gold ETF FoFs from Oct 15-16 amid rising demand for the festive season.

Leading mutual fund houses have temporarily restricted new investments in gold ETF Fund of Funds (FoFs) as of October 15-16, 2026.

As per news reports, this move has been taken by entities including HDFC, Kotak, and ICICI Prudential, citing increasing demand ahead of festive seasons like Dussehra and Diwali.

Rationale Behind Restrictions by Mutual Funds

Around 17 mutual fund houses have informed their unitholders of a temporary halt to fresh subscriptions in gold ETF FoFs.

Although specific reasons for the move were not disclosed, it is believed that the decision aligns with guidelines from the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI). Current redemptions and systematic transactions will continue.

Fund Houses’ Official Communications

HDFC Mutual Fund communicated through a notice that new subscriptions and switch-ins have been suspended. Existing systematic investments registered before October 16 will continue unaffected. Shriram Mutual Fund stated that restrictions were imposed based on SEBI's instructions relayed through AMFI.

Below is the table where the mutual fund AMCs that have stopped subscriptions for their gold/silver fund of funds (FoFs) and ETFs:

AMC	Scheme(s)	Investments Which are stopped	Effective from
ICICI Prudential MUTUAL FUND	ICICI Prudential Gold ETF FOF	Lumpsum, switch-in, new SIP, new STP, IDCW transfer-in, SIP/STP top-ups	October 16, 2026
HDFC MUTUAL FUND	HDFC Gold ETF Fund of Fund, HDFC Gold Silver Passive FOF	Fresh subscriptions, switch-ins, fresh SIP/STP registrations	After 3:00 PM cut-off, October 15, 2026
Aditya Birla Sun Life MUTUAL FUND	Aditya Birla Sun Life Gold Fund	Fresh subscriptions and switch-ins	October 16, 2026
Tata MUTUAL FUND	Tata Gold ETF FOF	Fresh and additional lumpsum, switch-in, new SIP, new STP, top-ups	October 16, 2026
DSP MUTUAL FUND	DSP Gold ETF FOF	Lumpsum, switch-in, new SIP, SIP top-up, new STP-in, IDCW transfer plan	October 16, 2026
Invesco India MUTUAL FUND	Invesco India Gold ETF FOF	Lumpsum, switch-in, new SIP, new STP, IDCW transfer plan, SIP top-ups	Close of business, October 15, 2026
Zerodha Fund House	Zerodha Gold ETF FoF	Fresh and additional lumpsum, switch-in, new SIP, new STP, SIP step-ups	October 16, 2026
Nippon India MUTUAL FUND	Nippon India Gold Savings Fund	Fresh and additional lumpsum, switch-in, new SIP, new STP, SIP step-ups	October 16, 2026
SBI MUTUAL FUND	SBI Gold Fund	Fresh and additional lumpsum, switch-in, new SIP, new STP, IDCW transfer-in, SIP top-ups	October 16, 2026
Kotak MUTUAL FUND	Kotak Gold Fund, Kotak Gold Silver Passive FOF	Fresh and additional lumpsum, switch-in, new SIP, new STP, SIP step-ups	October 16, 2026
Axis MUTUAL FUND	Axis Gold Fund	Lumpsum, switch-in, new SIP/STP registrations	Opening of business, October 16, 2026
Mirae Asset MUTUAL FUND	Mirae Asset Gold ETF FoF, Mirae Asset Gold Silver Passive FoF	Lumpsum, switch-in, new SIP/STP registrations (all plans and options)	After 3:00 PM cut-off, October 15, 2026
LIC MUTUAL FUND	LIC MUTUAL FUND Gold ETF FoF	Fresh purchases, switch-in, new SIP (incl. step-up, micro, pocket SIP), new STP-in, IDCW transfer	October 16, 2026
Groww MUTUAL FUND	Groww Gold ETF FoF	Lumpsum, switch-in, new SIPs	October 16, 2026
UTI MUTUAL FUND	UTI Gold ETF FoF	Fresh and additional lumpsum, switch-in, new SIP, SIP step-ups	After 3:00 PM cut-off, October 15, 2026
HSBC MUTUAL FUND	HSBC Gold ETF FoF	Lumpsum, switch-in, new SIP, new STP, IDCW transfer plan	Close of business, October 15, 2026
Quantum MUTUAL FUND	Quantum Gold ETF FoF	Lumpsum, switch-in, new SIP/STP registrations	Close of business, October 15, 2026

Impact on Investment Options

Zerodha Mutual Fund has clarified that no new or additional lump-sum investments, including switch-ins from other schemes, will be accepted.

A similar stance is taken by DSP Mutual Fund, which has also paused new registrations for Systematic Investment Plans. These fund houses emphasise that the restrictions are temporary, without specifying an end date.

Conclusion

With 17 mutual fund houses pausing new subscriptions to gold ETF FoFs from October 15-16, existing systematic investments and redemptions continue unaffected. Gold imports decreased to $1.8 billion in September, while ETF inflows reached ₹4,450.61 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

Published on: Oct 16, 2026, 12:58 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

Know More