Gold FoFs halt new investments; silver funds stay open
In short
Fund houses stopped new money going into gold Fund of Funds from Friday. Nearly 17 fund houses halted lump-sum buys, new SIPs, STPs and switch registrations.
Gold ETFs and silver mutual funds are still open. Experts say investors should watch the cost and possible premium risk, but the reporting does not say when the curbs will end.
What the reporting says
Fund houses halted fresh investments in gold Fund of Funds from Friday, with nearly 17 fund houses stopping lump-sum, new SIP, STP and switch registrations. The move comes as gold FoFs, which invest in mutual fund schemes, restricted inflows while gold ETFs and silver funds remained open. The reporting cites expert concerns about import bill pressure and ETF premiums, but does not state how long the restrictions will last.
Why it matters
Fund houses stopped fresh investment into gold Fund of Funds, including new lump-sum purchases and new SIP, STP and switch registrations, from Friday. Nearly 17 fund houses are reported to have taken this step, while gold ETFs and silver funds remain open. The reporting says experts are weighing the impact on India’s import bill and ETF premiums, but it does not state how long the restriction will last.