HDFC Mutual Fund Restricts Lumpsum Investments in Gold ETF and Gold ETF FoF; Check New Limits

HDFC Mutual Fund has announced restrictions on lumpsum investments in its gold-based schemes, namely HDFC Gold ETF and HDFC Gold ETF Fund of Fund (FoF). The fund house stated that the restrictions are temporary and will remain in effect until further notice. 

The move comes amid strong investor interest in gold-related investment products, with the fund house introducing investment limits for both schemes. 

HDFC Gold ETF Lumpsum Investments Restricted 

According to the fund house, subscription transactions by large investors directly with HDFC Mutual Fund in HDFC Gold ETF will no longer be accepted from the effective date. 

The restriction applies to direct subscriptions involving a minimum investment of ₹25 crore. Such transactions will not be processed until further notice. 

The revised rule for HDFC Gold ETF will come into effect from June 8, 2026. 

New Investment Limit for HDFC Gold ETF Fund of Fund 

HDFC Mutual Fund has also imposed limits on lumpsum purchases and switch-in transactions in HDFC Gold ETF Fund of Fund. 

Under the revised guidelines, investments in the scheme will be processed only up to a limit of ₹10 lakh per PAN per calendar month at the first-holder level. 

The restriction applies to transactions received after the cut-off time of 3:00 PM on June 5, 2026. 

The fund house clarified that all other terms and conditions of the schemes will remain unchanged and that the addendum will form an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM). 

HDFC Gold ETF: Fund Overview 

Launched on December 28, 2022, HDFC Gold ETF is an exchange-traded fund that seeks to provide returns linked to the performance of gold. 

As of April 30, 2026, the scheme had assets under management (AUM) of ₹69.72 crore. 

In terms of performance, the fund delivered a return of -4.01% over the last 1 year. Since its inception, the scheme has generated a compound annual growth rate (CAGR) of 8.27%. 

Read More: HDFC Mutual Fund Withdraws Gold-Silver FoF NFO Due to Import Duty Hike Concerns 

HDFC Gold ETF FoF: AUM and Performance 

HDFC Gold ETF Fund of Fund was launched on November 1, 2011, and invests primarily in units of HDFC Gold ETF. 

The scheme had an AUM of ₹11,464 crore as of April 30, 2026. 

Over the last 1 year, the fund delivered a return of 57.05%. Since inception, it has generated a return of approximately 11%. 

Conclusion 

HDFC Mutual Fund has temporarily restricted lumpsum investments in HDFC Gold ETF and HDFC Gold ETF Fund of Fund by introducing fresh subscription limits. While large direct investments in HDFC Gold ETF have been halted, investments in the FoF have been capped at ₹10 lakh per PAN per month. The fund house has stated that the restrictions will remain in place until further notice. 

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