SEBI broadens rules for equity funds worth $384 billion to include gold

The Securities and Exchange Board of India has allowed the $384 billion actively managed equity funds to park more of their money in gold and silver, giving them more flexibility at a time when global demand for hard assets is increasing.

Under SEBI’s revised rules, equity funds can invest the rest of their portfolios – up to 35% of their assets – in gold and silver instruments, as well as units of infrastructure investment trusts.

By expanding the list of permitted assets, the regulator has given equity funds a broader toolkit that already includes money market and other liquid securities. The change could also create a new source of demand for gold and silver, which have attracted robust investor interest during a blistering rally.

In January, local investors put more money into gold exchange-traded funds than into stock funds, a rare reversal that underlines the metal’s growing appeal amid market uncertainty.

SEBI also approved the creation of a new category of life cycle funds or target date funds. These plans have predetermined terms ranging from five to thirty years and are designed for goal-oriented investing, such as retirement planning.

Asset managers will be allowed to offer up to six active life-cycle funds at a time, potentially allowing the sector to compete with the government’s National Pension System, which oversees about $177 billion.

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Published on February 26, 2026