# Gold FoF Investments Halted

> Regulatory stop on gold FoF inflows lets investors buy ETFs directly.
- Title: Gold FoF Investments Halted · mint | Shortify
- Summary: Regulatory stop on gold FoF inflows lets investors buy ETFs directly. Investors can still buy gold ETFs on exchanges after mutual funds halted fresh gold FoF…
- Keywords: gold fofs, gold etfs, mutual funds, rupee, festive season, investor strategy, news, india, Gold, FoF, Investments, Halted
- Source: mint — https://livemint.com/money/personal-finance/gold-mutual-fund-investment-stop-gold-fof-sip-11792412042390.html
- Author: Ann Jacob
- Published: 2026-10-20T04:56:54+00:00
- Read time: 1 min
- Topics: gold fofs, gold etfs, mutual funds, rupee, festive season, investor strategy, news, india
## Investment Restrictions
About 20 mutual fund houses halted fresh lump-sum investments, new SIPs and top-ups in gold FoFs following regulatory directives on 15 and 16 October.
## Why Gold FoFs?
Gold FoFs act as feeder pipes investing in gold ETFs with ₹500 crore-600 crore assets under management at DSP Mutual Fund.
## Regulatory Rationale
Restricting FoF inflows targets foreign exchange leakage during festive season without disrupting direct ETF investments.
## Expert Clarification
Anil Ghelani confirmed restrictions apply only to gold FoFs, not gold ETFs, which remain liquid and actively traded on stock exchanges.
## Festival Impact
Elevated global crude oil prices and import duties have pressured the rupee, prompting government to curb gold demand during festivals.
## Investor Advice
Investors should buy gold ETFs directly or sovereign gold bonds if they need exposure, avoiding FOMO from the restrictions.
## Tax Implications
Secondary-market SGB purchases now face 12.5% long-term capital gains tax, similar to gold ETFs.
## Key takeaway

Investors can still buy gold ETFs on exchanges after mutual funds halted fresh gold FoF investments to curb rupee pressure during festivals.