Gold ETFs hold firm, gain up to 1% despite mutual fund investment curbs

Gold exchange-traded funds traded with a positive bias on Friday, even as multiple mutual fund houses restricted fresh investments in gold-linked schemes ahead of the festive season. 25 gold ETFs, including Tata Gold, ICICI Pru Gold, Nippon Gold, among others, were trading in positive territory, with gains ranging from 0.06 per cent to 0.78 per cent. The rise came despite restrictions announced by several fund houses on fresh investments in gold fund-of-funds (FoFs), which invest in gold ETFs. The curbs have not stopped gold ETFs from trading on stock exchanges, although they limit fresh inflows through the affected fund-of-funds schemes.

Sudeep Shah, head, technical and derivatives research at SBI Securities, said that the restriction on fresh investments announced by several fund houses, effective October 16, applies only to Gold ETF Fund of Funds (FoFs) and does not impact regular Gold ETFs.

He added that “Fresh lump-sum investments, new SIP registrations and SIP step-ups in these FoFs have been suspended, while existing SIPs will continue as usual. The move is primarily aimed at curbing incremental gold-import demand and easing pressure on the rupee, rather than signalling a bearish outlook for gold prices.”

At the last check, 360 One Gold ETF was the top gainer, rising 0.78 per cent, followed by LIC Gold ETF, which gained 0.50 per cent. Groww Gold ETF and Choice Gold ETF rose 0.42 per cent each, while Aditya Birla Gold ETF and BNP Paribas Gold ETF advanced 0.38 per cent and 0.39 per cent, respectively.

Notably, Data from the Association of Mutual Funds in India showed that gold ETF inflows rose sharply to ₹4,450.61 crore in September, up from ₹2,596.7 crore in August, marking their highest level in seven months. In February, the net gold inflows came in at ₹5,254.95 crore and in January at ₹24,039.96 crore amid bullion prices touching record highs.

On a cumulative basis, Gold ETFs have attracted net inflows of approximately ₹45,925 crore during January-September CY2026, already surpassing the ₹42,961 crore garnered during the entirety of CY2025, Morningstar analyst Nehal Meshram said in an earlier comment.

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