HDFC Mutual Fund Limits New Investments in Silver ETF FoF Amid Price Volatility

HDFC Mutual Fund has temporarily restricted new investments in its HDFC Silver ETF Fund of Fund (FoF) due to sharp volatility in silver prices. The fund house said the move aims to protect investors’ interests as the market for the precious metal faces fluctuations.

Limit on New Subscriptions

As per the addendum issued on October 15, 2025, HDFC MF will now accept new lump-sum purchases, switch-ins, and systematic registrations (such as SIPs and STPs) only up to ₹1 lakh per PAN per day.

The restriction came into effect after 3:00 p.m. on October 14, 2025, and will stay in place until further notice.

Industry-Wide Measures

This decision follows similar actions by other fund houses like ICICI Prudential, Kotak, UTI, SBI, Tata, and Groww Mutual Funds, which have also limited or paused fresh inflows into their silver ETF FoFs.

These restrictions stem from concerns over domestic silver prices trading at a premium to international rates, affecting the valuation of silver-based funds.

Existing Investments Unaffected

HDFC MF confirmed that ongoing SIPs, STPs, switch-outs, and redemption transactions will continue as usual.

All other terms and conditions of the HDFC Silver ETF Fund of Fund remain unchanged during this temporary measure.

Read More, Tech Mahindra Declares ₹15 Interim Dividend; Record Date Fixed for 21 Oct 2025, Payment Date Announced!

Conclusion

Amid heightened volatility and supply constraints in the silver market, HDFC Mutual Fund’s decision aligns with the broader industry trend of safeguarding investors from price distortions. The move is expected to remain in effect until silver prices stabilise.

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.