India relaxes regulations, allowing stock funds to allocate gold and silver, with a maximum holding ratio of 35%!

SnapshotLaborer · 2026-02-26T08:55:48+00:00

The Securities and Exchange Board of India expands the investment scope for actively managed equity funds, allowing them to hold up to 35% in gold, silver assets, and infrastructure investment trusts, enhancing investment flexibility. At the same time, new target date funds are established to meet retirement planning needs and compete with the national pension system.

SnapshotLaborer

2026-02-26 08:55:48

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India’s securities regulator expands the investment scope for actively managed equity funds, allowing them to hold gold and silver assets.

On February 26, according to Bloomberg, the Securities and Exchange Board of India (SEBI) revised the rules to allow actively managed equity funds to allocate up to 35% of their assets to gold, silver-related instruments, and infrastructure investment trust (InvIT) units, broadening the investment boundaries for the country’s $384 billion fund market and creating a new institutional demand source for precious metals markets.

This policy adjustment comes at a time when global demand for precious metals continues to rise. Driven by recent strong gold prices, investor interest in gold assets has significantly increased. In January, the Indian domestic market experienced a rare reversal, with gold ETF inflows surpassing stock fund inflows for the first time, reflecting the growing appeal of gold as a safe-haven asset amid increasing market uncertainty.

In addition to relaxing investment limits for stock funds, SEBI has also approved the establishment of a new type of lifecycle fund, known as target date funds. These products have a predetermined maturity period ranging from 5 to 30 years and are mainly aimed at goal-oriented investment needs such as retirement planning.

Under the new rules, asset management companies can issue up to six actively managed lifecycle funds simultaneously. This move is expected to promote competition between the asset management industry and the Indian government-led National Pension System, which currently manages approximately $177 billion in assets.

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