Gold mutual funds stop new SIPs and lump sums from 16 October 2026: what you can still do
About 17 fund houses stopped new money into gold fund of funds from 15 and 16 October 2026. Existing SIPs and redemptions continue.
If you planned to put money into a gold mutual fund before Dhanteras and Diwali, you may find the "invest" button switched off. Most fund houses have paused new money into their gold fund of funds (FoFs). Here is what changed and what you can still do.
What happened
From 15 and 16 October 2026, about 17 fund houses temporarily restricted new investments in their gold FoFs, as reported by Angel One and Business Standard. Each fund house announced it in a notice (an addendum) to investors.
The list reported by Angel One includes ICICI Prudential, HDFC, Aditya Birla Sun Life, Tata, DSP, Invesco India, Zerodha, Nippon India, SBI, Kotak, Axis, Mirae Asset, LIC, Groww, UTI, HSBC and Quantum. Some cut-offs were after 3 pm on 15 October, others from 16 October. HDFC, Kotak and Mirae Asset also paused their gold and silver passive FoFs.
A gold FoF is a mutual fund that puts your money into a gold ETF. You can buy it without a demat account, which is why many people use it for gold SIPs.
What is stopped and what continues
Stopped, in most schemes:
- New lump sum investments, including adding to an existing holding
- Switching money in from another scheme of the same fund house
- New SIP and STP registrations, and in many schemes SIP top-ups or step-ups
Still allowed:
- Existing SIPs and STPs. Instalments registered before the cut-off keep going in at the day's NAV. HDFC said systematic investments registered before 16 October continue unaffected, as reported by Angel One.
- Redemptions and switch-outs. You can take your money out as usual.
- Existing withdrawal plans (SWPs) continue.
The rules differ a little by scheme. Check your fund house's notice or app before you invest.
Why it happened
No fund house has given a clear reason, and there is no public SEBI circular. Shriram Mutual Fund said the restrictions came on SEBI's instructions passed on through AMFI, as reported by Angel One. Business Standard and Business Today linked the move to pressure on the rupee, which was about ₹95 to the dollar on 15 October 2026, and to the cost of gold imports. In May 2026 the government raised the import duty on gold to 15% from 6%.
Gold ETFs took in about ₹4,451 crore in September 2026, up from about ₹2,597 crore in August, according to AMFI data reported by Business Standard.
How long it lasts
The fund houses say the pause is temporary and lasts until further notice. None has given an end date. One expert told Business Standard he expects it to last beyond Diwali.
What you can still do
- Keep your existing SIP. It continues. You do not need to stop it.
- Buy a gold ETF on the exchange. Gold ETFs still trade on NSE and BSE. You need a demat and trading account, and you pay brokerage and other charges.
- Check the price before you buy an ETF. When demand is high, an ETF can trade above its real value. Compare the market price with the indicative NAV (iNAV) shown on the fund house or exchange website.
- Other ways to own gold include physical gold and digital gold. Digital gold is not regulated by SEBI or RBI.
Mutual fund investments are subject to market risks; read all scheme related documents carefully. Saifu does not sell or recommend funds, and this is not advice to buy or sell gold.
Sources: Angel One: 17 mutual fund houses restrict gold ETF FoFs, Business Standard: Gold FoFs halt fresh investments before Diwali, Business Today: Several mutual funds suspend fresh investments in gold FoFs, Goodreturns: Tata Gold ETF FoF restrictions, AMFI.
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Posts never contain referral or affiliate links from the writer.
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