SBI and ICICI Prudential Mutual Fund Resumes Subscription in Silver ETF Fund of Fund

SBI Mutual Fund has resumed accepting subscriptions in its Silver ETF Fund of Fund from October 27, 2025 while ICICI Prudential Mutual Fund has resumed accepting subscriptions in its Silver ETF Fund of Fund from October 28, 2025 . The move follows a brief suspension due to inflated domestic silver prices that had surpassed global benchmarks, posing valuation concerns.

Subscriptions Reopen After Domestic Silver Price Volatility

The fund house announced via notice-cum-addendum that lump sum investments, switches, new Systematic Investment Plans (SIPs), and Systematic Transfer Plans (STPs) into the SBI Silver ETF Fund of Fund would resume from October 27, 2025, while ICICI Prudential Silver ETF Fund of Fund would resume from October 28, 2025. The suspension was originally imposed on October 15, 2025 due to a sharp rise in silver prices in India, which led to an unreasonable premium over global rates. The price hike resulted from supply shortages in the local bullion market.

Reason Behind Temporary Suspension

The fund house highlighted that physical silver shortages had led to a supply-demand mismatch, inflating the values of silver exchange-traded funds (ETFs). To safeguard investor interests, new investments in the Silver ETF Fund of Fund were paused temporarily. Despite this, ongoing SIP and STP commitments registered before October 14, 2025 continued to be processed as usual during the suspension period.

Competitor Fund Houses Follow Similar Steps

ICICI Prudential Mutual Fund was among 5 fund houses that suspended fresh inflows into their Silver ETF FoFs, including Kotak Mutual Fund, SBI Mutual Fund, TATA Mutual Fund and UTI Mutual Fund. These fund houses have also resumed subscriptions. HDFC Mutual Fund, which had imposed partial restrictions, has now lifted all limits on its Silver ETF FoF as well.

Read More:Tata Mutual Fund Resumes Silver ETF FoF Subscriptions After Temporary Suspension!

About the SBI & ICICI Prudential Silver ETF FoF

The scheme is a fund of fund vehicle investing in SBI Silver ETF & ICICI Prudential Silver ETF. Its objective is to offer returns tracking the performance of domestic silver prices. Valuations in the FoF are conducted using the closing price of ETF units listed on the exchange, making them sensitive to market volatility and pricing premiums.

Conclusion

With market volatility easing and clarity returning, SBI Mutual Fund & ICICI Prudential Mutual Fund have confidently reopened its Silver ETF Fund of Fund to new investors. The return of stability in the domestic silver market has allowed multiple fund houses to lift their earlier restrictions and resume normal operations.

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