Mutual Funds Stop Gold ETF Inflows: What It Means (2026)

Yes, it's real. On the evening of 15 October 2026, around 17 Indian mutual fund houses stopped fresh inflows into their gold ETF fund-of-funds (FoFs), and most of the pauses took effect from 16 October.

Your existing SIP will keep running. What you can't do right now is put in a new lump sum, switch into a gold FoF or start a new SIP. If you have a demat account, though, you can still buy gold ETFs on NSE/BSE.

Below we’ve put together everything I could confirm about mutual funds stopping gold ETF inflows as of 26 October 2026: the full list of fund houses, the fine print, and what you should do.

At a glance: what's blocked and what still works

Gold ETFs themselves are unaffected. They’re still open to you on NSE/BSE. The only ETF restriction reported is for big investors. Reuters (via MoneyLife) says HDFC, Kotak and UTI have stopped bulk or large-ticket subscriptions made directly with the fund house in their gold ETFs.

Which mutual funds stopped gold ETF FoF inflows: the full list

Here's the list compiled from press coverage of the notices. (Last checked: 26 October 2026)

Silver-only FoFs and multi-asset funds reportedly aren't covered. Even so, read each scheme's notice before you move money there.

FoF vs ETF in plain English (and why this hits non-demat investors hardest)

A gold ETF is a fund that holds physical gold and trades on the stock exchange like a share. To buy it you need a demat and trading account, and you pay whatever the market price is at that moment.

A gold ETF fund-of-funds is a normal mutual fund that takes your money and buys units of the gold ETF for you. You don't need a demat account. You can run a ₹500 SIP through any MF app and buy at the day's NAV. For many first-time investors, students and parents, it was the easiest way to own gold without a locker.

That's why this pause affects a lot of investors. Industry officials estimate that FoFs bring in a quarter to a third of all gold ETF inflows. If you don't have a demat account, the paper-gold route is closed for now.

Why mutual funds stopped gold ETF inflows (and what's still unclear)

The fund houses themselves give no reason. Here's what has been reported:

• Shriram MF and DSP mention SEBI instructions passed on through AMFI. Cafemutual reports the same.
• Reuters describes “discussions with SEBI,” and bullion trade officials call it a regulator “nudge.”
• No public SEBI circular has been published. Industry sources say the RBI sent a document to SEBI.

The motive most outlets report is to cut dollar demand for gold imports and support the rupee during Dhanteras and Diwali buying. One fund manager called it “a soft signal, don't go towards gold.” IBJA's Surendra Mehta says the aim is to avoid a festive rush like last year's.

Here are some economic factors that may have led to the pause:

• The rupee has lost roughly 6% against the dollar in 2026, from about ₹90 at the end of 2025 to about ₹95 now, after touching ₹96 in late September. Check a live rate.
• Import duty on gold and silver went from 6% to 15% from 13 May 2026 (10% basic customs duty plus 5% AIDC).
• In May 2026, PM Modi asked people to avoid buying gold for a year to save foreign exchange.
• Gold imports were $1.8 bn in September, down from $2.3 bn in August and about 81% lower than a year earlier, against a monthly trade deficit of about $30.2 bn.

Meanwhile, money kept flowing into gold ETFs:

Festive buying around Dhanteras and Diwali could push these numbers higher, which is the risk the pause is reportedly meant to head off.

This isn't the first pause

• Oct 2025: Silver ETF FoFs paused lump sums because silver ETFs were trading at steep premiums. They reopened after about two weeks.
• 13 May 2026: Gold import duty raised to 15%.
• June 2026: Several fund houses capped large gold ETF and FoF investments.
• August 2026: The caps were eased (HDFC FoF from 14 Aug, Invesco from 24 Aug).
• 15–16 Oct 2026: A much wider pause across about 17 fund houses, covering FoFs fully, including new SIPs.

Earlier pauses lasted anywhere from about two weeks to about two months. No reopening date has been given this time.

What to do in your situation

You already have a gold FoF SIP

Do nothing. It keeps running. Don't cancel it, don't change the amount, and don't re-register it, because a new mandate will be rejected. If you're with Invesco, remember that any step-up goes back to your 15 October base amount when it reopens.

If you're still setting up the rest of your investments, our guide to automating SIPs covers the mandate basics.

You don't have a demat account

You have three realistic options:

1. Wait. If gold is meant to be a 10–15% diversifier for you, waiting a few weeks won't hurt a long-term plan.
2. Open a demat account and buy ETFs on the exchange. It's quick these days, but read the premium section below before your first order.
3. Look at multi-asset funds that hold some gold. Reports say they aren't covered, but check the scheme notice.

You have a demat account

You can buy gold ETFs on NSE/BSE. Just don't hit “buy at market” on Dhanteras morning because demand can push the price above the gold’s real value on that day. Check the iNAV (the ETF’s estimated fair value) first. The steps are in the premium section below.

You're planning to buy jewellery or coins on a credit card

Physical gold is still an option, but it costs more than it looks: 3% GST on the gold, making charges on top, and the higher 15% duty already built into the price.

If you're tempted to put it on a festive credit card EMI, work out the real cost first. Our credit card interest rate explainer shows how quickly a revolving balance eats any gold gains. Many cards also cap or exclude rewards on jewellery merchant codes, so check the MCC list before you assume you'll earn points.

The fine print: gold ETF premium risk and how to check iNAV

When FoF money can't get in, some of that demand moves to the exchange, and ETF prices can rise above the value of the gold they hold. It happened with silver ETFs in October 2025 and with overseas ETFs in 2024. Here's how to protect yourself:

1. Open the ETF's page on the fund house website, or NSE's ETF listing, and find the iNAV (indicative NAV, updated during market hours).
2. Compare it with the last traded price in your broker app.
3. Premium % = (market price − iNAV) ÷ iNAV × 100. Anything more than about 0.5–1% is a reason to wait or pick another gold ETF.
4. Use a limit order close to the iNAV, never a market order, especially in the first and last 15 minutes of trading.
5. Stick to ETFs with good daily volumes, where the bid-ask spread is tighter.

Monzy’s verdict

This is a pause on one route into gold, not a ban on owning gold. Gold is a diversifier, and planners commonly suggest 10–15% of a portfolio, so a few weeks without FoF access shouldn't change your plan.

Keep existing SIPs going, don't chase ETFs trading at a premium, and don't borrow on a credit card to buy festive gold. If your emergency fund isn't built yet, sort that out before gold. For more money and card guides, start at the Monzy blog homepage.

Status tracker

26 Oct 2026: Found no reports of any fund house reopening gold FoF subscriptions, and no public SEBI circular. This section will be updated when the notices change.

FAQs about gold FOFs pause

Do I need to stop my existing gold fund-of-funds SIP?

No. SIPs and STPs registered before the cut-off on 15–16 October 2026 keep running as normal. Don't cancel and re-register them, because new SIP registrations into gold FoFs are currently being rejected. Many fund houses, including ICICI Prudential, Tata, DSP, Invesco, SBI, Kotak, Nippon, UTI, Zerodha and LIC, have also blocked SIP top-ups and step-ups, so leave the amount unchanged for now.

Can I still redeem or switch out of my gold FoF?

Yes. Redemptions, switch-outs and systematic withdrawal plans (SWPs) are still allowed at all the fund houses that paused inflows. The restriction only covers new money going in: fresh or additional lump sums, switch-ins, new SIP or STP registrations, and, at some fund houses, SIP top-ups and dividend (IDCW) transfers.

Is this a SEBI ban on gold investments?

Not officially. Fund houses and Cafemutual cite SEBI instructions passed on through AMFI, and Reuters reports discussions with SEBI. However, no public SEBI circular has been published. The widely reported motive is to reduce dollar demand for gold imports and support the rupee during festive buying.

How can I buy gold without a demat account right now?

Your options are limited while gold FoFs are paused. You can buy physical gold or coins (expect 3% GST and making charges), look at multi-asset funds that hold some gold if they allow fresh money, or open a demat account and buy gold ETFs on NSE or BSE. Waiting is also reasonable if gold is a long-term diversifier for you.

When will gold FoFs reopen for fresh investment?

No date has been announced. Tata, DSP and UTI say the pause is till further notice, while ICICI Prudential and Aditya Birla Sun Life call it discontinued without a timeframe. Earlier pauses lasted from about two weeks (silver FoFs in October 2025) to about two months (the gold caps from June to August 2026). Check your fund house's website for updates.

Disclaimer

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.

This is our honest read, not investment advice. We’re not your advisor, and past performance doesn’t guarantee future returns. Before you act on anything big, check the latest figures with the fund house and talk to a SEBI-registered investment adviser.