HDFC and Axis Mutual Fund have resumed subscriptions for their s and gold ETF Fund of Funds, signaling an ease in earlier restrictions imposed due to heavy inflows and concerns about physical gold supply. This follows similar moves by other major fund houses.
Strong
Market Inflows Triggering Restrictions
⏳ Time Machine
How today’s news fits into the bigger picture
2007
First Gold ETF Launched in India
India sees the launch of its first , offering a new and modern avenue for investors to gain exposure to gold prices.
2013
Global Demand Rises During 'Taper Tantrum'
During periods of global market volatility, such as the "Taper Tantrum" triggered by the US Federal Reserve, gold sees increased safe-haven demand globally.
March 2020
COVID-19 Disrupts Gold Supply Chains
Global supply chain disruptions due to the COVID-19 pandemic cause temporary liquidity issues in physical gold markets, impacting some gold funds and refining capabilities.
Early 2026
Funds Restrict Gold ETF Inflows
Several Indian impose restrictions on fresh investments in s and FoFs due to strong inflows and concerns over physical gold sourcing.
Today
HDFC and Axis Mutual Fund resume unrestricted subscriptions in gold ETFs and gold ETF FoFs.
What happens next?
Market will watch for sustained inflows into gold ETFs and how fund houses manage potential future demand surges amidst global economic uncertainties.
Two major fund houses, HDFC Mutual Fund and Axis Mutual Fund, have announced the resumption of unrestricted subscriptions in their respective gold Exchange Traded Funds (ETFs) and gold ETF Fund of Funds (FoFs). This decision comes after they, along with other fund houses, had previously halted or restricted fresh investments into these products due to a surge in inflows and concerns over the availability of physical gold required to back these investments. The resumption indicates that the underlying supply chain and liquidity concerns have eased, allowing investors renewed access to gold-backed investment products.
💭 If you're wondering…
A Gold ETF (Exchange Traded Fund) is an investment fund that holds physical gold or gold-related assets. Its units are traded on stock exchanges, providing investors a liquid way to invest in gold without owning the physical metal.
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