HDFC Mutual Fund has imposed temporary restrictions on investments in its gold exchange-traded fund (ETF) schemes amid heightened interest in gold-backed assets. The fund house said it will stop accepting subscription transactions from large investors directly into HDFC Gold ETF from June 8, 2026. The restriction will apply to investors making direct investments of at least Rs 25 crore with the mutual fund.
In addition, lumpsum purchases and switch-ins into HDFC Gold ETF Fund of Fund (FOF) will be processed only up to Rs 10 lakh per PAN per calendar month at the first-holder level. The cap will apply to transactions received after the cut-off time of 3 pm on June 5.
HDFC Mutual Fund said the measures are being introduced in light of prevailing economic and market conditions and will remain in force until further notice.
The move comes at a time when gold has emerged as one of the preferred safe-haven assets amid global geopolitical uncertainties, currency volatility and concerns over economic growth. Rising gold prices have also attracted significant investor flows into gold ETFs and related schemes.
The restrictions coincide with the government's growing focus on curbing non-essential imports. In a recent public appeal, Prime Minister Narendra Modi urged Indians to avoid purchasing gold for a year, arguing that lower gold imports would help conserve foreign exchange and strengthen the economy.
With gold continue to exhibit bullish sentiments – it returned over 17% year-to date in India-- it has become a favourite investment option for investors. It was evident from 3 times jump in the asset under management of Gold ETFs in FY26.