There is important news for investors who prefer investing in gold through mutual funds. HDFC Mutual Fund has announced temporary restrictions on large investments in its Gold ETF and Gold ETF Fund of Funds (FoF).
The fund house said this decision has been taken due to current economic and market conditions.
The new rules will come into effect from June 8, 2026, as the company looks to manage the rising inflow of money into gold-based investment products.
Investments of ₹25 Crore or More Not Allowed
Under the revised rules, investments of ₹25 crore or more will not be accepted in HDFC Gold ETF and HDFC Gold ETF Fund of Funds.
This means that any investor or institution planning to invest ₹25 crore or above in these schemes will not be able to do so until the restrictions are lifted.
New Monthly Limit for Gold ETF FoF Investors
HDFC Mutual Fund has also introduced stricter rules for investors in the HDFC Gold ETF Fund of Funds (FoF).
Lump-sum investments and switch-in transactions will now be allowed only up to ₹10 lakh per investor per month.
Investors will not be able to invest more than this amount in a single month, whether through a fresh lump-sum investment or by switching money from another mutual fund scheme.
Investments Above the Limit Will Be Rejected
The fund house has clearly stated that any investment exceeding the prescribed limits will not be accepted while these restrictions remain in force.
As a result, lump-sum investments or switch-in requests above ₹10 lakh will not be processed.
HDFC Mutual Fund said the move was necessary because of the growing popularity of gold investment products and the continuous increase in investment inflows.
The company has not announced how long these restrictions will continue or when they may be removed.
Gold Continues to Attract Indian Investors
Gold has always been one of the most preferred investment options in India. For decades, Indian families have invested in physical gold as a way to preserve wealth.
In recent years, Gold ETFs and Fund of Funds (FoFs) have become increasingly popular.
These products allow investors to gain exposure to gold without the need to buy and store physical gold, making them a convenient option for many investors.
