Indian fund houses curb new inflows into gold fund of funds
About 20 Indian fund houses have halted new lump-sum buys and SIPs in gold FoFs after regulatory directives. The aim is to curb gold imports and support the rupee.
- published on Newsmetry
- original source published
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner. connect the api →
what happened
According to Moody's, about 20 mutual fund houses in India have reportedly stopped new lump-sum investments, new SIPs and top-ups into gold fund of funds (FoFs) following regulatory directives issued on October 15 and 16. The restriction applies only to this entry route. Existing active SIPs continue, and direct investment in gold exchange traded funds (ETFs) remains open.
Experts say the move is meant to reduce domestic demand for gold imports during the festive season and ease pressure on the rupee, which has been hit by elevated crude oil prices. Fund managers stress that the step is not caused by liquidity problems in gold ETFs.
why it matters
For markets, the step signals an effort to limit foreign exchange leakage through gold imports while oil prices are high. Because it affects only one entry channel, the direct impact on gold prices is limited, but it may dampen Indian investor demand for the metal and provide some support to the rupee.
market impact
Gold and INR: curbs on gold FoF inflows may limit gold import demand and support the rupee.
tags
instruments
sources
- Why have fresh investments into gold FoFs been halted, and what should you do? — Moody's, 20 October 2026 at 08:05 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner.
get stories in real time ↗