SBI Mutual Fund temporarily suspends fresh lumpsum investments in Silver ETF FoF amid supply constraints

SBI Mutual Fund has announced a temporary suspension of fresh lumpsum investments in its SBI Silver ETF Fund of Fund (FoF), effective October 13, 2025, in response to a sharp surge in silver demand and constrained physical supply. 

In an official notice, the fund house cited global macroeconomic factors and growing investor interest in commodities as key reasons behind the recent spike in silver prices. However, the limited availability of physical silver has restricted the creation of new ETF units at indicative net asset value (iNAV), prompting a move to safeguard investor interests. 

The SBI Silver ETF FoF is an open-ended fund-of-fund scheme that invests in the SBI Silver ETF, which in turn tracks domestic silver prices. “The premium in domestic silver prices directly impacts the valuation of the Scheme,” the notice stated. 

The suspension applies to all fresh subscriptions via lumpsum mode, including additional purchases and switch-ins. However, existing investments through Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), redemptions, and switch-outs will continue as usual, in line with the Scheme Information Document. 

SBI Mutual Fund clarified that the suspension is temporary and will remain in effect until further notice. All other terms and conditions of the scheme remain unchanged. 

The notice was issued from Mumbai on October 11, 2025, and signed by Nand Kishore, Managing Director & CEO of SBI Funds Management Limited. 

Investors are advised to take note of the update and read all scheme-related documents carefully before making investment decisions. 

Earlier today, UTI Mutual Fund announced a temporary suspension of fresh subscriptions in its Silver ETF Fund of Fund (FoF), effective October 13, 2025. This makes it the second asset manager within a week to pause inflows into silver-based mutual fund schemes. 

The move comes shortly after Kotak Mutual Fund implemented a similar suspension in its silver ETF FoF, sparking concerns over rising market volatility and possible regulatory developments affecting the silver asset class.