HDFC Mutual Fund: Resumes Full Subscriptions in Silver ETF FoF

HDFC Mutual Fund has restored full subscription access to its HDFC Silver ETF Fund of Fund (FoF) after a brief restriction on fresh investments.

The scheme is now open for lump-sum investments, switch-ins, SIPs, and STPs, following a temporary cap imposed due to elevated domestic silver prices trading at a premium to global benchmarks.

What Changed?

The AMC had temporarily restricted fresh investments to ₹1 lakh per PAN per day, starting after 3:00 PM on October 14, 2025.

• The cap was introduced in response to rising silver prices, which were trading above global rates due to supply constraints.
• Unlike some other AMCs, HDFC opted for a quantitative cap instead of a complete halt on fresh subscriptions.

With the reopening, investors can now resume full-scale investments without daily limits.

Broader Industry Context

HDFC Mutual Fund is among several asset management companies (AMCs) that adjusted inflows into silver-based passive schemes in recent days:

• ICICI Prudential, Tata, Kotak, SBI, and UTI Mutual Fund temporarily suspended fresh subscriptions or switch-ins.
• Aditya Birla Sun Life, Axis, and also imposed temporary restrictions on lump-sum inflows.

While many AMCs opted for complete pauses, HDFC initially implemented a partial cap, which has now been rolled back.

What Continues Unchanged?

• Existing SIPs and STPs were not affected by the earlier cap and continue normally.
• Redemptions from the scheme remain unaffected, allowing investors full liquidity.

The AMC clarified that both the temporary restriction and the reopening were designed to protect investor interest under prevailing market conditions.

Read More: Silver Supply Tightens in India as Global Demand Remains Robust.

Conclusion

HDFC Mutual Fund’s decision to lift the cap on its Silver ETF FoF allows investors to resume full subscriptions after a brief restriction. By balancing inflows during periods of elevated silver prices, the AMC aims to safeguard investor interests while maintaining scheme stability. Existing SIPs, STPs, and redemptions continue unaffected, ensuring uninterrupted access for investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.