Gold FoFs Put Fresh Investments on Hold
Mutual funds halt fresh investments in Gold ETF FoFs
Several mutual fund houses have temporarily stopped accepting new investments in their Gold ETF Fund of Funds (FoFs) from October 16, 2026, following instructions from SEBI. Notices to investors began going out on October 15, with more fund houses expected to implement the restriction.
The restriction applies to Gold ETF FoFs, not Gold ETFs themselves. Existing investors can continue their registered SIPs, while fresh investment registrations and certain additional investments are being restricted.
What changes for investors?
- Fresh lump-sum investments: Temporarily suspended.
- Switch-ins: Transfers from other mutual fund schemes into the affected Gold FoFs are not being accepted.
- New SIPs and STPs: New registrations are restricted.
- Existing SIPs: Can continue as scheduled.
- Gold ETFs: Remain outside the scope of this restriction.
Fund houses implementing the move include Tata Mutual Fund, UTI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Mutual Fund, DSP Mutual Fund and Invesco India Mutual Fund.
The move follows instructions from the market regulator, though the precise reason for the restriction has not been publicly detailed in the article. Investors should check the relevant AMC's notice for scheme-specific conditions and updates.
Source: Cafemutual
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