India's SEBI Eases Stock Fund Investment Restrictions, Allows Up to 35% Allocation in Gold and Silver

Published: Mar 2, 2026 10:23
SEBI announced two mutual fund reforms on February 26. First, actively managed equity funds can now allocate up to 35% of assets to gold, silver instruments, and InvITs. This expands India's $384 billion fund market and creates new institutional demand for precious metals. Second, SEBI approved life cycle funds for retirement planning with 5-30 year maturities. Each asset manager can run up to six such funds, competing with the government's $177 billion National Pension System. These reforms mark a breakthrough in product innovation and will boost precious metals allocation in institutional portfolios.

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