Suspending Investments
After Kotak MF, UTI, SBI MFs too suspend new subscriptions in silver ETF FoF
This story was originally published at 14:37 IST on 13 October 2025
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MUMBAI – After Kotak Mahindra Mutual Fund's announcement Thursday of a temporary suspension of lumpsum investments in the Kotak Silver Exchange-Traded Fund Fund of Funds, UTI Mutual Fund and SBI Mutual Fund also announced similar steps regarding their respective silver ETF fund of funds over the weekend. This decision by the three mutual fund houses came at a time when domestic silver prices are at a premium to international benchmarks.
"In light of the current market scenario, UTI Mutual Fund has decided to suspend all fresh and additional lump sum and switch-in transactions in the UTI Silver ETF Fund of Fund, effective October 13, 2025," the fund house said in an addendum on Friday. Following this, SBI Mutual Fund on Saturday also said the same in a notice-cum-addendum, which was effective from Monday.
Although these mutual fund houses have suspended investments into the silver ETF fund of funds, they specified that all existing systematic investment plans, systematic transfer plan, systematic withdrawal plan, flexi systematic transfer plan and other plans offered by the scheme will remain operational. "Please note that during this suspension period, redemptions (including switch-outs) will continue to be permitted in accordance with the terms outlined in the Scheme Information Document," according to the UTI Mutual Fund's addendum.
According to Value Research, UTI Silver ETF Fund of Fund – Direct Plan gave a return of 20.36% in September and the SBI Silver ETF Fund of Fund – Direct Plan gave a return of 21.11%, the highest return in the silver ETF fund of funds category. Kotak Silver ETF Fund of Funds – Direct Plan gave a return of 19.77% in September.
Manav Modi, assistant vice president at Motilal Oswal Financial Services Ltd., said the scarcity of the white metal in India is mainly due to a surge in demand amid the ongoing festival season. However, this disparity in prices may ease off after Diwali, he said.
The December futures contract of silver on the Multi Commodity Exchange of India Thursday rose to an all-time high of INR 153,388 per kilogram, tracking the contracts on COMEX. On the global exchange, silver prices breached the $50-per-ounce mark to hit a record high almost after 14 years. End
US$1 = INR 88.62
Reported by J. Navya Sruthi
Edited by Tanima Banerjee
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