Silver ETF FoFs: List of Funds Accepting Investments and Those Restricting Them

The recent enthusiasm for silver investments that began with the launch of Silver Exchange-Traded Funds (ETFs) in 2022 is slowing down. Several mutual fund houses have temporarily stopped accepting new lump-sum and switch-in investments in their Silver ETF Fund of Funds (FoFs). The decision comes amid limited liquidity in the physical silver market, which affects how these funds operate.

Funds That Have Suspended Investments

As of October 14, 2025, 7 major fund houses have paused new investments. Kotak Mutual Fund, SBI Mutual Fund, UTI Mutual Fund, and Groww Mutual Fund have suspended all fresh lump sum and switch-in transactions but continue to allow SIPs for both existing and new investors.

Tata Mutual Fund and ICICI Prudential Mutual Fund have gone further by stopping all types of new investments, including SIPs, effective October 14. Meanwhile, HDFC Mutual Fund has imposed a daily investment limit of ₹1 lakh per PAN instead of a full suspension.

Funds Still Accepting Investments

Some fund houses are still open to fresh inflows. These include Aditya Birla Sun Life Silver ETF FoF, Axis Silver FoF, DSP Silver ETF FoF, Nippon India Silver ETF FoF, and Zerodha Silver ETF FoF. None of these AMCs have announced any suspension or restriction as of October 15, 2025.

Why the Pause?

The pause is mainly due to tight silver supply and low liquidity in underlying silver ETFs. Since Silver ETF FoFs invest in ETFs that must hold physical silver, the rising demand has made it harder to create new ETF units. This can lead to ETF units trading at a premium, higher than the actual silver value, prompting AMCs to protect investors from overpaying.

What Investors Should Do

For existing investors, there’s no need to worry, ongoing SIPs will continue unless stopped by the AMC. New investors can still invest through fund houses that remain open, but they should be aware of the current market volatility and limited silver supply.

Read More: Why Has the Indian Government Restricted Silver Jewellery Imports?

Conclusion

The suspension of new investments in Silver ETF FoFs is a temporary step to safeguard investors amid liquidity constraints. Once the silver market stabilises and supply improves, mutual funds are expected to reopen investment options.

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.