Aligning with competitors HDFC Mutual Fund and ICICI Prudential Mutual Fund, Nippon India Mutual Fund has imposed restrictions on large investments into its gold-linked schemes, as top asset managers look to curb fresh inflows into gold ETFs amid rising concerns around gold import and broader economic factors.
The fund house will no longer accept direct subscriptions of mothan Rs 25 crore in its Nippon India ETF Gold BeES, while lump sum investments into the Nippon India Gold Savings Fund have been capped to a maximum of Rs 10 lakh per PAN per month.
Furthermore, Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) investments in the fund have been now capped at Rs 50,000 per PAN per day.
HDFC MF, ICICI Prudential MF, and Nippon India MF curb large inflows into gold ETFs
Mutual fund (MF) houses are curbing substantial inflows into gold exchange-traded funds (ETFs) and their corresponding fund of funds (FoFs) to align with the government’s recent policy of discouraging people from accumulating gold.
Till date, three major asset management companies — HDFC MF, ICICI Prudential MF, and Nippon India MF — have imposed restrictions on large inflows into gold funds. These regulatory changes will come into effect between June 5 and June 8.
“In light of the broader economic and market conditions, it has been decided to temporarily restrict lumpsum subscriptions in HDFC Gold ETF and HDFC Gold ETF Fund of Fund until further notice,” a communication from the fund house said.
Similar communications, in the form of addendum to the scheme information document (SID), were released by ICICI Prudential MF and Nippon India Mutual Fund.
Following Prime Minister Narendra Modi’s appeal to citizens to buy less gold, the government increased the import duty on the precious metal 15 per cent from 6 per cent. Gold remains one of India’s most significant import burdens. In fiscal year 2026, the total value of gold imported into the county surged by 24 per cent year-on-year, reaching a staggering $72 billion.
