In a notice-cum-addendum issued on Friday (June 5), the fund house said subscriptions to the ICICI Prudential Gold ETF made directly with the AMC by eligible investors for amounts exceeding ₹25 crore will not be accepted until further notice.
The restriction will come into effect from the close of market hours on June 5 and will not apply to market makers and authorised participants, according to the notice approved by the board of ICICI Prudential Trust.
The move comes at a time when gold has witnessed significant inflows from investors seeking exposure to the safe-haven asset. Gold prices have risen sharply over the past year, driving strong growth in assets under management (AUM) of gold-backed exchange-traded funds.
While the AMC did not specify the reason for the restriction, such measures are typically aimed at managing fund inflows and operational requirements when demand for a scheme rises sharply.
The development follows a similar move by HDFC Mutual Fund a day earlier. HDFC MF had temporarily restricted lump-sum investments into its Gold ETF and Gold ETF Fund of Fund schemes, citing capacity-related considerations.
Commenting on the move, Feroze Azeez, Joint CEO of Anand Rathi Wealth, said the decision reflects the need for caution amid a sharp surge in gold prices and inflows into gold investment products.
He noted that HDFC Gold ETF Fund of Fund delivered about 57% returns over the past year, while its assets under management rose to nearly ₹11,464 crore in April 2026 from around ₹3,870 crore a year earlier, highlighting strong investor appetite for the asset class.
Azeez said investors should avoid fresh lump-sum allocations to gold at current levels and consider reviewing existing holdings, saying that excessive financialisation of gold could add to import demand and pressure India’s external balances.
First Published: Jun 5, 2026 2:31 PM IST
