India Money: SIPs, Gold, PPF and Tax Slabs — 2026-10-16
Major Indian mutual fund houses have abruptly halted fresh investments in Gold Fund of Funds (FoFs) amid rupee pressure and festive demand concerns. Meanwhile, September SIP inflows hit an all-time high of ₹32,490 crore, and small savings interest rates remain unchanged for the current quarter.
India Money: SIPs, Gold, PPF and Tax Slabs — 2026-10-16
Top developments
Mutual Funds Halt Fresh Gold FoF Investments
Starting Friday, October 16, major asset managers including Kotak, Tata, ICICI Prudential, UTI, and HDFC have suspended fresh lump-sum investments, new SIP registrations, and systematic transfer plans in gold fund of funds. This move, reportedly following discussions with SEBI, aims to curb capital outflows linked to gold imports during the peak festive season when physical demand typically surges. Existing SIPs in these funds will continue, and investors can still buy gold ETFs directly.
SIP Inflows Hit All-Time High in September
Monthly SIP contributions reached a record ₹32,490 crore in September 2026, reflecting a 0.6% month-over-month increase and 11% year-over-year growth. This resilience occurred despite broader mutual fund industry net outflows of ₹1.33 lakh crore in the same month, driven by institutional selling. The steady rise in retail SIPs underscores continued household confidence in systematic equity investing.
Small Savings Rates Unchanged for Q3 FY27
The government has kept interest rates on small savings schemes, including PPF, Sukanya Samriddhi Yojana (SSY), and Senior Citizen Savings Scheme (SCSS), unchanged for the October–December 2026 quarter. This marks the 11th consecutive quarter without a rate revision. The PPF rate remains at 7.1%, while SSY continues to offer 8.2%.
UPI MDR Rules Take Effect
From October 15, 2026, NPCI introduced a Merchant Discount Rate (MDR) of 0.4% on Person-to-Merchant (P2M) UPI transactions exceeding ₹2,000, capped at ₹300 per transaction. However, transactions via RuPay credit cards or pre-sanctioned credit lines linked to UPI are exempt from this new MDR regime. Consumers will not pay any fees for scanning QR codes, and person-to-person transfers remain free.
Local view
Hindi media outlets like Aajtak and ET Now Swadesh are focusing heavily on EPF withdrawal rules, clarifying that subscribers can withdraw up to 75% of their balance under specific conditions such as illness, marriage, or education. Moneycontrol Hindi highlighted Section 269ST of the Income Tax Act, warning buyers that cash purchases of gold or other goods above ₹2 lakh in a single day can attract a 100% penalty. These stories reflect heightened consumer anxiety about compliance and liquidity access.
Context & numbers
- SIP Inflows: ₹32,490 crore in September 2026 (All-time high).
- PPF Interest Rate: 7.1% (Unchanged).
- SSY Interest Rate: 8.2% (Unchanged).
- NRI Investors: Active NRI investor count tripled since FY19 to over 957,000 as of July 2026, with holdings rising to ₹5.6 trillion.
On the radar
- Jewellery Stocks Volatility: Stocks like PC Jeweller and Shanti Gold rallied up to 10% following the gold ETF restrictions, as analysts anticipate resilient physical demand despite investment channel curbs.
- Festive Demand Watch: With Dhanteras and Diwali approaching, watch for potential regulatory tweaks if gold import pressures persist despite ETF restrictions.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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