The company said this decision has been taken considering current market and economic conditions. The new rules will come into effect from June 8, 2026.
The move aims to manage the rising demand for gold investment products and the increasing flow of money into these schemes.
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Investments Above ₹25 Crore Not Allowed
Under the new rules, investments of ₹25 crore or more will not be accepted in HDFC Gold ETF and HDFC Gold ETF Fund of Funds.
This means that any investor or institution planning to invest ₹25 crore or above in these schemes will not be able to do so for the time being.
New Monthly Limit for Gold ETF FoF Investors
HDFC Mutual Fund has also tightened rules for investors in its Gold ETF Fund of Funds (FoF).
From June 8, lump-sum investments and switch-in transactions will be allowed only up to ₹10 lakh per investor per month.
In simple terms, an investor cannot invest more than ₹10 lakh in a month through a one-time investment or by switching money from another scheme.
Investments Beyond the Limit Will Be Rejected
The fund house has clearly stated that any investment exceeding the prescribed limit will not be processed while these restrictions remain in force.
At present, HDFC Mutual Fund has not announced how long these restrictions will continue or when they may be removed.
The company only said that the decision was taken after considering broader economic and market conditions.
Why Gold Investments Remain Popular
Gold has always been one of the most preferred investment options in India. Traditionally, Indian families have invested in physical gold, but financial products linked to gold have become increasingly popular in recent years.
Gold ETFs and Gold FoFs allow investors to gain exposure to gold without buying and storing physical gold. This convenience has attracted a growing number of investors, leading to strong inflows into these schemes.
With investor interest in gold continuing to rise, HDFC Mutual Fund’s latest decision highlights the growing demand for gold-based investment products in the country.