Aditya Birla Sun Life AMC Puts Temporary Suspension on New Investment in Silver ETF FOF

Aditya Birla Sun Life AMC has announced the suspension of fresh investments in the Aditya Birla Sun Life Silver ETF Fund of Fund (FOF) to safeguard the interests of investors and maintain market integrity. The suspension will be effective from October 15, 2025, and applies to:

• Fresh subscriptions
• Additional purchases
• Switch-in applications

Why Suspension on the Silver ETF?

In recent weeks, the Indian silver market has been experiencing significant volatility. Due to prevailing market conditions and a domestic shortage of physical silver, silver is currently trading at a notable premium compared to international prices. This pricing disparity has impacted Silver Exchange Traded Funds (ETFs), leading to inflated trading values on stock exchanges.

This surge in silver prices has directly influenced the valuation of Silver ETFs, including the Aditya Birla Sun Life Silver ETF. As a result, the Net Asset Value (NAV) of such ETFs may not accurately reflect the actual value of the underlying asset, potentially putting investors at risk.

Important Deadlines to Note

• Applications for new investments submitted after the cutoff time on October 14, 2025, will not be processed.
• No fresh registrations will be accepted under Systematic Investment Plans (SIP) or Systematic Transfer Plans (STP) effective from the same date.

Will Existing SIPs and STPs be Impacted?

For investors with ongoing SIP or STP mandates registered prior to the effective date, scheduled installments will continue to be processed as per the original plan. However, no new SIP or STP mandates will be registered or processed on or after October 15, 2025. It is important to note that this suspension does not affect redemptions. Investors can continue to redeem their units or initiate switch-out requests as per the terms outlined in the Scheme Information Document (SID).

Also Read: Silver ETFs in October 2025: 1-Month, 6-Month, and 1-Year Returns in Focus

Conclusion

Aditya Birla Sun Life AMC’s decision to temporarily halt new investments in its Silver ETF FOF is a precautionary measure aimed at protecting investors from distorted valuations driven by current market imbalances.

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.

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