The gold investment boom in India has run into a roadblock. Several mutual fund houses have temporarily stopped accepting fresh lump-sum investments, new systematic investment plans (SIPs) and switch-ins into Gold and Silver ETF Fund-of-Funds from October 16, amid the government's efforts to rein in gold imports and ease pressure on the rupee.
Sources said there was no directive from the regulator to stop flows into gold funds. A source from the Association of Mutual Funds in India (AMFI) also confirmed there had been no discussion about stopping investments in gold funds at the industry level.
"The stoppage is entirely the call of the respective funds. It is not an industry-wide call — in fact, there is no such discussion at the industry level," said a source.
The decisions appear to have been taken independently by the respective asset management companies, potentially in anticipation of increased demand for precious metals during the festive season and the possible implications for the rupee.
The timing is significant. Gold ETFs have emerged as a major channel for investors seeking exposure to the yellow metal, particularly after the Sovereign Gold Bond scheme was discontinued in February 2024. Inflows into Gold ETFs surged from Rs 9,225 crore in 2024 to Rs 42,961 crore in 2025.