- Portfolio Management Services and Mutual Funds must comply with SEBI regulations.
- SEBI is considering limiting passive mutual funds in India.
Major Fund Houses Temporarily Restrict New Investments in Gold Funds
What happened
Seventeen mutual fund houses, including HDFC Mutual Fund, Kotak Mahindra Mutual Fund, Tata Mutual Fund, and ICICI Prudential Mutual Fund, announced temporary restrictions on new money investments in certain gold FoFs. These restrictions, which began on the evening of October 15, 2026, apply to gold FoFs that invest in gold exchange-traded funds (ETFs). The fund houses stated that existing SIPs, redemptions, and switch-outs would continue during the suspension period.
From indiatimes.com
Why it matters
The restrictions come while the market regulator SEBI is considering limiting passive mutual funds in India. The move affects specific gold FoFs, which provide investors with exposure to gold through the mutual fund route. This action signals a potential shift in how passive investment products are regulated in the country.
SEBI is considering limiting passive mutual funds in India, requiring Portfolio Management Services and Mutual Funds to comply with regulatory changes.
From indiatimes.com