HDFC Mutual Fund restricts lump sum subscriptions in Gold ETF, Gold ETF FoF

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HDFC Mutual Fund on Thursday (June 4) announced temporary restrictions on lump-sum subscriptions in HDFC Gold ETF and HDFC Gold ETF Fund of Fund until further notice. The fund house said the decision was taken in light of broader economic and market conditions.

“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 (“the Schemes”) until further notice,” HDFC Mutual Fund said.

For HDFC Gold ETF, subscription transactions by large investors directly with HDFC Mutual Fund will not be accepted from June 8, 2026. The restriction applies to investments of a minimum of ₹25 crore.

Also Read: HDFC Gold ETF Fund of Fund

For HDFC Gold ETF Fund of Fund, lump-sum purchases and switch-ins will be processed only up to a limit of ₹10 lakh per PAN per calendar month at the first holder level. The limit for the fund of fund scheme will apply to transactions received after the cut-off time of 3:00 PM on June 5, 2026.

The mutual fund house said all other terms and conditions of the schemes will remain unchanged.

Last month, HDFC Mutual Fund withdrew the new fund offer (NFO) of its HDFC Gold-Silver Passive Fund of Fund, amid growing policy focus on gold imports and their impact on India’s external account.

“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. We encourage investors to consider equity and debt mutual funds that channel household savings into productive capacity formation in the Indian economy,” said Navneet Munot, MD and CEO, HDFC AMC.

Also Read: HDFC MF introduces SIP cap in defence fund; restricts STP to ₹25,000 from today

Effective May 13, the revised duty structure includes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC).

The move partially reverses the customs duty reduction announced in the 2024-25 Union Budget, when import duties on gold were lowered to support the gems and jewellery sector, reduce domestic prices and curb smuggling.



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