HDFC, ICICI Prudential, Tata Mutual Fund halt fresh investments in gold ETF FoFs

Benchmarks Nifty22,959.80-37.55FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.69 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.78 % Invest NowEnter search text:

The Economic Times daily newspaper is available online now. Read Today's Paper HDFC, ICICI Prudential, Tata Mutual Fund halt fresh investments in gold ETF FoFs ahead of festive seasonBy Rakshanda Sharma, ET OnlineLast Updated: Oct 16, 2026, 01:33:00 AM ISTSynopsis

Tata Mutual Fund, HDFC Mutual Fund and ICICI Prudential Asset Management Company have restricted fresh investments in their gold fund-of-funds (FoFs) ahead of the festive season. Existing investors can continue their registered SIP instalments and redeem their investments.

Listen to this article in summarized format

Loading...×Tata Mutual Fund, HDFC Mutual Fund and ICICI Prudential Asset Management Company on Thursday issued notices halting fresh investments in their gold fund-of-funds (FoFs), ahead of the festive season.

The notices, seen by ET Online, do not specify a reason for the restrictions. Investors can continue to redeem their existing investments, according to the notices.

Tata Mutual Fund said fresh and additional lump-sum investments, switch-ins, top-ups and new systematic investment plan (SIP) and systematic transfer plan (STP) registrations in Tata Gold ETF FoF would be temporarily restricted from October 16.

ALSO READ | India’s hidden gold chest is giving imported bullion a run for its money

“Further, Instalments under existing SIP/STP registrations (registered prior to the effective date) shall continue and be processed at applicable NAV,” the fund house said.

Live Events

Indian Bullion and Jewellers Association (IBJA) president Surendra Mehta confirmed the move to ET Online. He said the restrictions could have been introduced to avoid a rush into gold FoFs during the festive season, similar to last year's trend.

ALSO READ | Titan Jewellery CEO Arun Narayan bullish on festive demand, but watchful on rural trends

A source told ET Online that the Reserve Bank of India had sent a document on the matter to the Securities and Exchange Board of India (SEBI) for consideration.

The move comes as the rupee has lost about 7% this year, making it one of Asia's worst-performing currencies. The depreciation has increased India's import bill, while foreign investors have also sold Indian equities, Reuters reported. Strong gold demand has added to the pressure on the rupee, prompting the government to raise import duties on gold and silver to 15% from 6% earlier this year.

India, the world's second-largest consumer of gold after China, imports roughly 700–900 tonnes of the yellow metal every year.

With geopolitical tensions driving up commodity prices and putting pressure on the rupee, a hefty gold import bill is an added burden for India and can widen the country's trade deficit.

Gold imports fell sharply to $1.8 billion in September from $2.3 billion in August. However, demand for gold in India typically rises during the festive season when people buy the yellow metal on Dhanteras and Diwali as this period is considered auspicious.

Inflows into gold and silver ETFs surged during last year's festive season as investors turned to precious metals amid weak returns from the stock market.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onHDFC Mutual FundICICI PrudentialTata Mutual Fundgold ETFsgold demand in Indiafestive season gold buyingimport duties on goldinvestment restrictions in goldReserve Bank of Indiaicici prudential asset management company

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

...moreless
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onHDFC Mutual FundICICI PrudentialTata Mutual Fundgold ETFsgold demand in Indiafestive season gold buyingimport duties on goldinvestment restrictions in goldReserve Bank of Indiaicici prudential asset management company

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Big Price Drop! Flat 40% Off

Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail OfferAvail OfferClaim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '

' + h3 + '

' + h4 + '

' + listing + '

'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with
in-depth insights that matter

• Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

  What Adani’s US indictment means for India Inc’s overseas fundraising

• Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

  Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

• Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

  The problem with lab grown diamonds

• Why a falling rupee is a better option for the economy

  A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Alpha Trade

Get daily trade ideas from SEBI-registered research analysts.

Investment Ideas

Grow your wealth with stock ideas & sectoral trends.

Stock Reports Plus

All-in-one stock research with Stock Score, peer comparison & key signals.

BigBull Portfolio

Get to know where the market bulls are investing to identify the right stocks.

Stock Analyzer

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Market Mood

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Stock Talk Live at 9 AM Daily

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Manage your money efficiently with this weekly money management guide.

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

5Enjoy Complimentary Subscriptions From Top Brands

Stream new documentaries from all across the world every day.

Stories you might be interested in