HDFC Mutual Fund has announced temporary restrictions on lump-sum subscriptions in its HDFC Gold ETF and HDFC Gold ETF Fund of Fund (FoF) schemes, citing broader economic and market conditions. The fund house said the restrictions will come into effect from June 5-8, depending on the scheme, and will remain in force until further notice.
“In light of the broader economic and market conditions, it has been decided to temporarily restrict lump-sum subscriptions in HDFC Gold ETF and HDFC Gold ETF Fund of Fund,” HDFC Mutual Fund said in a notice issued on Thursday.
Restrictions on Gold ETF investments
For the HDFC Gold ETF, subscription transactions by large investors directly with the fund house will not be accepted from June 8, 2026.
The restriction applies to direct subscription transactions of ₹25 crore or more, typically undertaken by institutional investors and large market participants.
The fund house, however, did not indicate any changes for investors buying or selling ETF units on stock exchanges.
₹10 lakh monthly cap
HDFC Mutual Fund has also imposed limits on investments into the HDFC Gold ETF Fund of Fund, which allows investors to gain exposure to gold through a mutual fund structure.
Under the revised rules, lump-sum purchases and switch-in transactions will be accepted only up to ₹10 lakh per PAN per calendar month, calculated at the first-holder level.
The cap will apply to transactions received after the cut-off time of 3:00 PM on June 5, 2026.
The asset management company clarified that all other terms and conditions of the schemes remain unchanged.
Gold-Silver FoF NFO withdrawal
The move follows HDFC Mutual Fund’s decision last month to defer the launch of its HDFC Gold-Silver Passive Fund of Fund.
At the time, the fund house linked the decision to increasing policy discussions around precious metal imports and their impact on India’s external account balance.
“We have decided to defer the NFO of our Gold-Silver Passive FoF in light of the broader national conversation around precious metal imports and their impact on the external account,” HDFC AMC Managing Director and CEO Navneet Munot had said.
He had also encouraged investors to consider equity and debt mutual funds that contribute to productive capacity creation within the Indian economy.
Gold imports under policy spotlight
The developments come amid renewed focus on India’s gold imports following changes in customs duty structures. Effective May 13, the revised framework includes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC) on gold imports.
The changes partially reverse the import duty reductions announced in the 2024-25 Union Budget, which were aimed at supporting the gems and jewellery industry, lowering domestic prices, and curbing smuggling.
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