Gold ETF Fund of Funds Shut to New Money From 16 October: ICICI Pru, Tata, Mirae Asset Stop Lump Sums and New SIPs

Tried to start a SIP in a gold ETF fund of funds this week and got a rejection? You are not alone. From Friday, 16 October 2026, ICICI Prudential, Tata and Mirae Asset have stopped fresh lump-sum investments, switch-ins and new SIP registrations in their gold ETF fund of funds schemes “till further notice”, according to notices dated 15 October on their websites. Existing SIPs continue, and you can still redeem.

What changed from 16 October

A gold ETF fund of funds (FoF) is a mutual fund that invests your money in a gold exchange-traded fund. It lets you buy gold exposure without a demat account, often through a monthly SIP. That door has now been narrowed at three fund houses we checked.

Source: notices-cum-addenda dated 15 October 2026 (ICICI Prudential No. 012/10/2026; Tata addendum; Mirae Asset AD/90/2026). ICICI Prudential’s notice discontinues only “fresh subscriptions” and does not mention exits at all, so redemptions are not restricted by it. Tata and Mirae Asset say in so many words that redemptions continue.

Mirae Asset’s notice adds a timing detail: the restriction applies to applications received after the 3 PM cut-off on 15 October. So a lump sum placed on Thursday afternoon may have been rejected even before Friday.

Why are gold ETF fund of funds closed to new money?

The three notices give no reason. Mint, Reuters and CNBC-TV18 reported that fund houses acted after the Securities and Exchange Board of India (SEBI) conveyed its concerns through the Association of Mutual Funds in India (AMFI). We could not find a SEBI circular or press release on this, so treat the reason as reported, not confirmed.

This is not the first curb. Mint reported that in June, some fund houses had limited single investments of ₹10 lakh or more in such schemes. The current step goes further by blocking new SIPs of any size.

The timing matters. Gold prices have been volatile: IBJA’s 24K fix fell about ₹3,000 per 10 grams this week before rising ₹484 on Friday, as our 15 October gold rate post shows. Festival demand is also building ahead of Dhanteras.

If you already have a SIP

• Your instalments keep going. All three fund houses say SIPs registered before the effective date will be processed at the applicable NAV. You don’t need to do anything.
• No top-ups. ICICI Prudential and Tata say top-ups on existing SIPs will not be processed. If your SIP has an annual step-up, check with the fund house whether the higher amount will go through.
• Want to stop? You can cancel a SIP in the usual way. Remember that once cancelled, you cannot register a new one while the curb lasts.
• Redemptions work. None of the notices restricts selling units. Units held for more than 24 months are taxed as long-term capital gains at 12.5% under current rules for such funds; shorter holdings are taxed at your slab rate. Check with a tax adviser for your case, especially if you bought units before April 2025, when older rules applied.

If you wanted to start now: your options

Gold ETFs themselves were not restricted by these notices. If you have a demat account, you can still buy units on the NSE or BSE during market hours. Note that the stock exchanges are shut on Tuesday, 20 October, for Dussehra.

Before switching routes, check whether you even need more gold. Many households already hold jewellery. Our explainer on how much gold you can keep at home and our Dhanteras 2026 gold guide can help you add up what you already own.

Gold ETF fund of funds vs gold ETF: a quick comparison

The FoF route costs a little more because you pay two layers of expenses, but it is simpler for SIP investors without demat accounts. That convenience is what has been paused.

Will the curb end soon?

None of the notices gives an end date, and none says how much money the schemes manage or how many investors are affected. Tata and Mirae Asset call the suspension temporary. Fund houses usually announce a restart through a fresh addendum on their websites, so check there rather than relying on social media posts. Other fund houses may announce similar steps; we have not checked every scheme.

For now, think of gold as one part of a plan, typically a small share of savings, not a quick trade. Having gold loan access is another reason families hold jewellery; our gold loan guide explains how lenders value it.

Common questions, answered briefly.

FAQs

Is my gold ETF fund of funds SIP cancelled?

No. Existing SIPs registered before 16 October continue at ICICI Prudential, Tata and Mirae Asset, per their notices. Only new SIPs, lump sums, switch-ins and top-ups are blocked.

Can I withdraw my money?

Yes. Redemptions are allowed.

Did SEBI ban gold funds?

No ban has been announced. Media reports say SEBI raised concerns through AMFI, and fund houses chose to pause fresh money in FoF schemes. Gold ETFs on the exchange remain open.

Which fund houses have stopped fresh investment?

We verified ICICI Prudential, Tata and Mirae Asset from their own notices. Check your fund house’s website for its current status.

Takeaway: From 16 October, at least three gold ETF fund of funds schemes have stopped fresh lump sums and new SIPs, while existing SIPs and redemptions continue. If you want gold exposure now, a gold ETF through a demat account is still open, but compare costs before you switch.