Refile: India's HDFC Mutual Fund restricts subscriptions for gold ETFs

HDFC Asset Management

04/06/2026 14:35

Changes headline to say restricts subscriptions, not suspends
BENGALURU, June 4 (Reuters) - India's HDFC Mutual Fund said on Thursday it will temporarily restrict lump-sum, or one-time, subscriptions in its gold exchange-traded funds (ETFs), citing broader economic and market conditions.
Here are more details:
The fund house said it will suspend direct subscriptions of 250 million Indian rupees ($2.61 million) and above from large investors in the HDFC Gold ETF, which invests in gold bullion, from June 8. 
It also capped new investments in the HDFC Gold ETF Fund of Fund, which primarily invests in units of the HDFC Gold ETF, at 1 million rupees per investor per month from 3 p.m. IST on June 5. 
The limit on the Gold ETF Fund of Fund applies to both lump-sum investments and transfers from other schemes.
The move follows strong investor demand for gold funds, record inflows into gold ETFs and elevated gold prices, as investors continue to rely on the safe-haven asset amid geopolitical turmoil and economic uncertainty.
Large investments can be difficult for gold ETFs to absorb during periods of heavy demand.

($1 = 95.7850 Indian rupees)

 (Reporting by Nishit Navin in Bengaluru; Editing by Diti Pujara)
 ((Nishit.Navin@thomsonreuters.com;))