Axis, Kotak and Aditya Birla Life Silver ETF FoF Subscriptions Resumed After Market Stabilisation

After a period of intense market volatility and significant price distortions in the silver market, subscriptions to major Indian Silver ETF Fund-of-Fund (FoF) schemes, namely Axis, Kotak, and Aditya Birla Sun Life, have resumed as of October 2025. 

These schemes temporarily halted new investments in mid-October due to a surge in silver prices, which caused ETFs to trade at a premium far above their indicative net asset value (iNAV). With market conditions stabilising, all three funds have now accepted new subscriptions, signalling restored balance in India’s silver ETF market.

Reasons for Temporary Suspension and Subsequent Resumption

The suspension of subscriptions in October 2025 was triggered by extreme volatility in the silver market, leading to a sharp increase in silver prices. This surge, combined with strong demand, pushed the prices of Silver ETFs above their iNAV, creating an unusually high premium. The primary reasons behind this spike were physical silver shortages and a significant supply-demand imbalance. Once the market normalised and ETF prices aligned with their iNAV, the funds resumed accepting new subscriptions.

The resumption of investments indicates that the supply-demand gap has eased, and the ETF units are once again trading at fair value relative to their iNAV.

Key Dates and Fund-Specific Details

The resumption of subscriptions took place as follows:

• Axis Silver Fund of Fund: Resumed on October 20, 2025. Subscriptions were halted due to a sharp price premium, but as the premium eased and prices normalised, investments resumed. Available transactions include lump-sum investments, switch-ins, and SIP/STP.
• Kotak Silver ETF Fund of Fund: Resumed on October 23, 2025. The fund had paused subscriptions due to high premiums and market volatility. With the market normalising and the premium falling, Kotak resumed accepting investments. Lump-sum investments and switch-ins are now allowed.
• Aditya Birla Sun Life Silver ETF FoF: Also resumed on October 23, 2025. Subscriptions were halted due to price distortions, with the ETF units trading at a discount. Once the market stabilised, investments were reopened, including lump-sum investments and switch-ins.

Read More: HDFC Mutual Fund: Resumes Full Subscriptions in Silver ETF FoF!

New Investment Options Available

With subscriptions now resumed, investors can make fresh lump-sum investments, switch in from other schemes, or opt for new Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP), depending on the Asset Management Company (AMC). These options provide flexibility for investors looking to gain exposure to silver through ETFs.

Conclusion

The resumption of subscriptions to Axis, Kotak, and Aditya Birla Sun Life Silver ETFs marks the end of a temporary disruption caused by extreme market conditions in October 2025. The market normalisation has returned stability, with all three funds once again open to new investments. Investors can now participate in the silver ETF market through lump sum, switch-ins, and systematic plans, with prices aligning to fair values.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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 Mutual Funds are subject to market risks. Read all related documents carefully before investing.