With regards to the SEBI notification yesterday, can any of the knowledgeable members share details of how it could impact AMC’s margins (and specifically to HDFC AMC)? Thanks
it tanked today..I think that says there will be some negativity aroun that SEBI notification.
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HDFC is lagging a bit behind ICICI (which benefits from the parent bank that has a closed architecture for MF distribution and thus contributes to a bigger share of AMC AUM)
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Not sure if this is the right place to share this
From April 22, 2026, the fund is no longer restricted to being almost entirely physically backed.
It can now: • Allocate to gold derivatives • Use financial gold instruments (GMS, GDS, etc.) • Introduce non-physical exposure into the portfolio.
More derivatives = potential tracking differences • More financial exposure = counterparty & liquidity risk • Over time = possibility of increased “paper gold” in the system
Yes, the right place
If physical gold is trading at a massive premium in India (due to import curbs or local demand), using a derivative might actually be a cheaper way for the AMC to give you gold exposure without overpaying for physical bars.
Positive for Both AMC and Investors
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Curious to learn this change by HDFC for gold ETFs.
I am also exploring points like expense ratio, risk potential (rise or drop) change with these instruments.
In my opinion, if these been kept for new unit buyers only, could have helped current holders spared from exploring all these effects.
Also for existing unit holders 30-day exit window is given, but tax implications angle is not talked about.
As per my knowledge only HDFC is going for such options, and other players of gold ETF don’t need this? Sorry, but not aware of what made only them do this and other players not?
Disclosure: Invested in HDFC gold etfs.
PS: Admin please feel free to move this (or suggest to move) to appropriate topic, if required